EAST ORANGE, NJ — At the March 13 East Orange City Council meeting, Mayor Lester Taylor introduced his $140 million budget for Calendar Year 2017, which contained a tax decrease, Taylor’s first as mayor. According to administration officials, the last time the city had a budget introduced containing a tax decrease was 2006.
Taylor said this is part of his administration’s long-term plan to leave East Orange in a better financial position than when he first ran for office in 2013. The mayor unexpectedly announced earlier this year that he would not seek a second term in office in order to spend more time with his family. Last year, he admitted his plan was to modestly increase taxes during his first three years in office, in order to balance the city’s books and fill its coffers with enough ratable revenue so that he could afford to dramatically reduce taxes in his fourth year.
“Now we are in a position to lessen the tax burden of our homeowners and provide some relief in the form of a proposed 0.5 percent tax reduction,” said Taylor on Monday, March 13. “That translates into approximately $96 in tax savings for the average homeowner.”
However, according to City Council Chairman and 3rd Ward Councilman Ted Green, who is running for mayor this year to succeed Taylor, the proposed Calendar Year 2017 City Budget did not live up to the hype.
“The East Orange Council voted not to accept the administration’s budget in its current form,” said Green on Tuesday, March 21. “We have several questions about the legitimacy of the proposed expenditures, revenue streams and their classifications, which, in its existing state, hampers the authenticity of a real tax decrease. We are the stewards of our great city and its financial well-being, so we could not in good conscience vote to accept the proposed budget as it was presented to us by the mayor.”
Green said the impact of ongoing national and international politics and policies coming out of Washington, D.C., and its likely long-term impact on local finances and fiscal policy also played a big role in the council’s collective decision not to accept Taylor’s fourth and final budget as it was presented to them on Monday, March 13.
“President (Donald) Trump’s budget cuts hurt vital services, such as senior meals and youth programs, and increase the load municipal governments must carry to maintain a sound quality of life for residents,” said Green. “These times call for thorough planning and conservation. Out of concern for the city’s financial future and the direct impact this budget will have on our citizenry, the council must ensure proper utilization of the budget surplus.”
But Green said that despite the governing body’s rejection of the budget, it is willing to work with Taylor to produce a budget that is acceptable to all parties and East Orange stakeholders involved.
“We look forward to the administration’s response to our questions and concerns,” said Green. “We all have one goal, and that is to serve in a manner that is accountable, sustainable and in the best interest of the citizens of East Orange.”
Taylor said his proposed $140 million budget includes a $16 million fund balance, “which means money in the bank, reserved to cover the city’s annual budget expenditures, without having to borrow money.” He said borrowing money from other city agencies, such as the formerly financially unsound East Orange Water Commission, was once “a common practice from previous administrations,” but after having to raise taxes by 4.5 percent in his first year, the mayor “assembled a strong team of financial experts to help the city create an aggressive, but realistic plan that would put East Orange on strong fiscal footing for years to come.”
And now, Taylor said, even though he is not running for re-election, all that planning is set to pay off big for East Orange’s residents, even though he won’t be in office next year to take credit for it. But since he is a homeowner and does not plan on leaving the city any time soon, he and his family will also benefit.
“The plan included a slight increase in the tax levy that progressively got lower in each subsequent year that followed — taxes went up 2.5 percent in 2015 and 1.5 percent in 2016,” said Taylor. “The challenges in our first budget inspired our departments to think critically and creatively over the past three years. We’ve reduced superfluous spending and developed forward-thinking and innovative solutions that eliminate duplicate services, inefficiency and overlap. In essence, we have demonstrated what it means to set the standard for urban excellence.”
From a budgetary standpoint, Taylor said, his four-year term in office is looking like a real-life “mission accomplished.” His administration’s list of accomplishments include: nearly a half billion of private capital investment in East Orange, up from $100 million three years ago; a revamped East Orange Golf Course, which brought in $900,000 in revenue in 2016; a completely overhauled East Orange Water Commission, which is now a national leader in municipal water management; the purchase of East Orange General Hospital by Prospect Medical, which saved the community hospital from closing; establishment of the Division of Vacant and Abandoned Properties, which has brought in more than $3.2 million; more than $5 million in grants to support public safety personnel and keep residents safe; new employment-training programs and additional recreational opportunities for young people; and new recreation department and community programs, such as the comprehensive Summer Food and After School Food programs and sensory friendly swimming classes for autistic children and adults; expanding the citywide Summer Concert Series; and partnering with the Board of Education, clergy and other entities to widen the safety net and service opportunities for city residents.
“Thank you to Council Chairman Ted Green and the East Orange City Council for unanimously approving the last three budgets passed under my administration, with the exception of one abstention,” Taylor said. “With this budget, I have every faith that you will find a fiscally-sound budget that delivers on our shared goal to make East Orange a place where people are proud to call home; a place where businesses want to come and where residents are prepared to work; a place where children can learn and play, and where families can grow old together. I have had the pleasure of working alongside a City Council that has supported my administration’s vision to set the standard for urban excellence and make East Orange a destination city.
“The harsh reality is that many people expect urban communities like ours to fail. They don’t believe that we can make smart policy decisions or implement innovative solutions to address our problems. They underestimate us and what we are able to accomplish when we come together to work as one. Tonight, I stand before you to tell you that we proved them wrong.”
Third Ward Councilwoman Quilla Talmadge, the council’s Finance Committee chairperson, has been one of Taylor’s biggest supporters throughout his tenure. In fact, last year, she said one of the main reasons she ran for re-election was so she would be able to help the mayor turn his dreams for East Orange into reality, including crafting a city budget in his fourth year that contains a tax decrease, as he had promised.
But now that Tallmadge’s council colleagues have rejected Taylor’s last budget proposal, that means it’s back to the drawing board for the mayor and the city.
EO mayor introduces last budget, and with a tax decrease added by Chris Sykes on
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