News Release
For Release: Monday, November 16th, 2009
Contact: Frank Baraff 914-469-3775

Mayor Eldridge Hawkins, Jr. Submits 2010FY Budget to City Council.

1. Most of 9.7% tax increase caused by higher state-mandated pension costs.
2. Budget includes 12 furlough days.
3. Mayor Hawkins pledges to work with Council to identify additional spending cuts.
4. Mayor announces cost-saving shared services discussions with West Orange, South Orange and East Orange
5. Mayor announces reassessment that could lower certain residential property taxes beginning in 2011.

Highlights of Mayor Hawkins’ Budget Message:

“In times like these, every family needs to stretch every dollar of income, and every government needs to find ways of doing more with less. Times like these demand that we take a fresh look at our priorities, make hard decisions about what we can afford and what we cannot afford, and find better less expensive ways to deliver essential services.  Those considerations have guided the preparation of this budget.”

“One important way to reduce the property tax burden on Orange residents is to obtain every available dollar of federal, state, and county funding. … We have been successful in obtaining grants and federal stimulus funding of over 6.2 million dollars in this year’s and last year’s budgets.”

“The Fiscal Year 10 Budget… is a prudent spending plan totaling $58,440,120.69 (an increase of $3,682,621.16 over FY09) that maintains staffing levels as well as the services and programs our residents want and deserve.”

“The cost increases in the FY10 Budget that are in any way under the control of Orange represent only a 2.4% increase in the estimated tax rate…  The major uncontrollable cost increase in the FY10 Budget, the increase in (state-mandated) pension payments… represents a 7.3% increase in the estimated tax rate for a total increase in the FY10 estimated tax rate of 9.7%.” 

“The estimated tax rate increase of 9.7% translates into an increase of  $482 for the average tax bill in Orange. Of this $482, our Orange municipal government can affect only $120. And, of that $120, most of it is the result of our postponing last year’s cost of living increases for our police and fire personnel, plus the result of higher health insurance costs and the lower revenues caused by the recession.”

(These estimates assume neither further appropriation reductions nor approval of the City’s application on file for State Aid.)

“In order to hold the estimated tax increase at 9.7%, we have been forced to take the difficult step of furloughing city administrative employees and elected officials 12 days by June 30, 2010.  The furloughs will provide a savings of approximately $326,000.  Furlough days will not include our emergency services, police and fire or our school crossing guards.”

The city has made strides in achieving budgetary cost savings, which have helped to contain the increase in the FY10 Budget.  Some of the cost savings are:

• $1,000,000 on health benefit costs by switching to the State Health Benefits Plan
• Renegotiating the Superior Officers Association contract beginning 1/1/08 reducing the contract from 4% to 3% COLA each year for 4 years saving $35,000 annually
• Eliminating the Purchasing Agent salary going forward
• Saving $20,000 on the police uniform contract
• Banning non-essential travel, seminar and conference attendance for executive branch employees
• We are also achieving savings through bulk purchasing thrugh the Cranford and Morris County Purchasing Cooperatives

“I pledge to work with the City Council and the Citizens Budget Advisory Committee to seek additional spending reductions and/or new revenues after the budget is introduced... Together we succeeded in reducing the budget last year after it was introduced, and I believe that we can do it again.”

“…We have initiated shared fire fighting services discussions with West Orange and South Orange and also have had shared services discussions for certain public works services with East Orange.  It is clear that the only way small municipalities such as Orange can survive in the long run is through sharing services with their neighbors… I am hopeful that next year’s budget will begin to reflect those savings.”

“ …Before I took office, a huge property tax increase on homes in Orange was caused by revaluation that took place when (home) values were at their highest point in history.  This caused an unfair imbalance between residential and commercial property values... Last year, I promised to look into a reassessment to restore balance and fairness… This year…the process of reassessment is well under way... All tax bills after January 2011 will be based on the updated property values… This means that if you are a homeowner whose property taxes increased by hundreds or thousands of dollars after the last revaluation, there is a good chance your taxes a year from now will be less than they would have been without this year’s reassessment.”

Full Budget Message  (revised 12/01/09)      
2010 Fiscal Year Introduced Budget

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