Jersey City's expected tax hike: 3 percent

Saturday, March 17, 2007
By KEN THORBOURNE
JOURNAL STAFF WRITER

The city budget hasn't been adopted yet, but numbers crunchers in Jersey City say homeowners are looking at a 3 percent municipal tax hike - a far cry from last year's 18 percent deluge.

For property owners with homes assessed at $100,000, the bump in the total municipal tax levy, from $135 million to $140 million, will translate to an additional $70 on their yearly tax bill, said Business Administrator Brian O'Reilly.

"Tax increases at or less than the rate of inflation is a good job of management, given the increases in pension, health benefits, insurance, and fuel, while increasing police and fire services," O'Reilly added.

Members of the City Council are expected to introduce a total municipal tax budget estimated at $431 million this coming week and a public hearing and final vote for adoption is tentatively planned for March 28 at City Hall, officials said.

This budget covers July 1, 2006 to June 30, 2007.

Taxpayers will also have to pay more for local public schools. Last year, the state cut school aid to Jersey City by $7.5 million and this year aid was reduced another $3.2 million.

To make up for those cuts, the city's school tax levy will rise to $79.6 million from $75.8 million, which will mean an extra $59 in yearly taxes for properties assessed at $100,000, O'Reilly said.

The county portion of the tax bill is still to come, but given the formula used to make that calculation, O'Reilly said he expects those taxes to go down.

The big ticket items that sent the budget numbers north this year: health insurance, pension costs, and police and fire department salaries, O'Reilly said.

Health insurance costs increased from $53.5 million last fiscal year to $57.9 million, he said. State-controlled pension costs rose from $11.7 million to $18.7 million. The tabs for salaries in the Fire and Police departments rose $2 million and $4 million, respectively, he said.

The city had 18 more cops on the job when this year's budget was introduced last September than it did the year before - 915 compared to 897, city officials said.

There are actually fewer firefighters working now (584) than when last year's budget was adopted (610). But a class of 42 recruits is on the way, officials said.

On the income side of the ledger, the city's income from "payment in lieu of taxes" from tax-abated properties rose $3 million, from roughly $77 million to $80.3 million. Ratables in the city - the assessed value of non tax-abated properties - have also risen by $300 million in the past two years, O'Reilly said.