Jersey City Council to set Q3 tax bills after DCA meeting

Council President Denise Ridley walked into Tuesday’s caucus meeting after a long morning with state officials. She had news for her colleagues: the state would let the council set the third quarter tax rate, but only at 15 or 20 percent.

“I believe that is the pleasure of the council, but we will discuss that, and we will then add that to the agenda for Wednesday as the Q3 tax bills have not gone out yet and we will want those bills to go out so the city can pay their bills,” Ridley said, according to Hudson County View.

The council voted down a 15 percent hike just two weeks ago. Now, after a meeting with the New Jersey Department of Community Affairs (DCA), members said they’ll revisit the issue.

The city needs those quarterly tax bills to go out—soon—so it can pay its own bills. For residents, that means a property tax increase is coming. The only question is how much.

Here’s what happened: The DCA met with the council to discuss the city’s $105 million state loan. That loan comes with strings attached. One of them is a memorandum of understanding (MOU) that the council must approve Wednesday. The MOU locks in certain budget terms, including the tax rate.

Councilman Frank “Educational” Gilmore pressed for details. CFO Bill Viqueira spelled it out: “They made it clear we have two options: 15 percent or 20 percent.”

Gilmore said the council should have been part of the negotiations from the start. “We have to be a part of the negotiating phase. We have to be consulted,” he said. “For me, it makes my job extremely hard.”

Councilman at-Large Michael Griffin agreed. He called it frustrating. He said the council shouldn’t have to negotiate with their backs against the wall.

Ridley said they only received the MOU on Tuesday.

The budget itself is just under $887 million—a 15.5 percent increase over last year. Viqueira said more than $100 million of that covers unpaid obligations from the previous administration. Salaries and wages, mostly for public safety, make up 34 percent of spending.

The DCA also told the council they don’t recommend tapping the city’s rainy day fund—the surplus—because it’s too small. Councilman at-Large Rolando Lavarro asked about selling city land to raise money. The DCA said it’s possible, but could affect the loan terms.

For residents, the bottom line is simple. Your property taxes are going up. The council will vote Wednesday on whether to set the new rate at 15 or 20 percent. Either way, your bill will be higher.

Council members say they don’t have much choice. The DCA is clear: accept one of these two rates, or risk losing the state loan the city needs to stay afloat.

So what can you do? Watch Wednesday’s city council meeting. It starts at 6 p.m. The public can speak during the comment period. You can also call or email your council member before then. Let them know how this affects your family budget.

This isn’t the end of the conversation. The council still has the power to propose budget cuts or changes, according to Ridley. “Us accepting an MOU does not change that fact,” she said. But for now, the immediate question is the tax rate.

Jersey City is in a tough spot. The state is calling the shots on this one. But your voice still matters. Use it.