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Mayor says audit recovering developer funds as residents complain about tax hike
Summary
Residents pressed the council about a steep tax bill; Mayor Gaines said an audit is recovering developer payments and that the overall average increase across jurisdictions is about 9.8%, while the city has recovered nearly $2 million so far and is pursuing roughly $5.4 million.
Mayor Gaines told residents at the July 28 Hackensack City Council meeting that a professional audit of developer agreements has identified at least $5.4 million owed to the city and that about $2 million has already been claimed and will show up in future tax bills.
"We have conducted an audit ... the city was owed $5,400,000 at least," Mayor Gaines said, adding that the administration has recovered nearly $2,000,000 so far. He described the recoveries as one of multiple steps the council is taking to reduce residents' tax burdens.
The comments came after resident David Caulfield said his first tax bill in August showed a roughly 15% increase compared with last year and urged the council to consider austerity measures and rescinding developer incentives. "A 15% increase for this 1st bill in August versus last year," Caulfield said, adding that many residents nearing retirement would find the increase unsustainable.
Gaines disputed the single-bill comparison and said the combined tax increase across city, schools, county and other jurisdictions averages about 9.8% overall. "Taxes did not go up 15 ... when it's all averaged out, it's 9.8%," he said. The mayor said the city has not hired school administrators or granted new pilot agreements to luxury developers since the current council took office.
Gaines also pointed to other cost-control efforts. He said the city is self-insured for health care and has taken steps to vet claims more thoroughly, which has reduced health-care spending compared with last year. Asked by the mayor to comment, Jim, identified in the meeting as the CFO, said, "We're running well below last year," and noted that the State Health Benefits Plan is projecting an increase of about 14% next year.
The mayor said council and staff are reviewing departmental budgets and tracking spending month to month, and he invited residents to discuss concerns after the meeting. No formal budget actions were taken at the July 28 meeting.
