Budget is up $13M - with $9M hole city is hoping to fill
Friday, September 15, 2006
By EARL MORGAN
JOURNAL STAFF WRITER

Jersey City's 2007 municipal operating budget is $148 million - an increase of $13 million over last year's $135 million figure, according to city officials.

The Jersey City City Council voted Wednesday night unanimously and without comment to introduce the budget, even though Jersey City Business Administrator Brian O'Reilly said it includes a $9 million shortfall.

During Monday's council caucus, O'Reilly said he was hopeful his office could find a way to make up the budget gap through anticipated state aid dollars, tax abatement payments and various other funding sources. The gap will have to be closed before the budget can be approved.

Last year, the city closed a $25 million shortfall in the 2005-2006 budget by raising property taxes 18 percent - increasing property taxes from $19.30 per $1,000 of assessed valuation to $22.85 per $1,000.

O'Reilly said he is hopeful of finding additional revenues to forestall another tax increase.

"We're looking to get more money from the Port Authority in payment in lieu of taxes we get from them for city property they occupy," O'Reilly said, "and it looks like we will be able to work something out with them."

The budget O'Reilly submitted Wednesday includes $5 million in revenue from two new sources - a city tax on hotel rooms and a transfer fee on real estate transactions.

O'Reilly reeled off a string of high-profile projects the city is hoping to get off the ground using money from the city's $32 million capital budget

The projects includes a new police communications building at Bishop and Grand streets; a new West District police station at Jackson and Clinton avenues; and a new firehouse to replace the facility on Communipaw Avenue, adjacent to the West District police station.