Tax Bills

Certain things in life are certain, the sun will rise and Mayor Schundler will waste taxpayers' money distorting the truth.  Here is a typical letter sent with the tax bill dated January 1997.                                                                                  

"I am pleased to report that the City Council has just adopted a Fiscal Year 1997 budget which will cut city property taxes by another $700,000.00.

"This the 5th year in a row that the City has been able to provide you with meaningful tax relief.  In 1992, the City billed property taxpayers $112.9 million for municipal services.  This year, the City will bill property taxpayers only $87.5 million--that's $25 million less than five years ago!"

Now the truth-the SFY 1992 Budget collected $96.9 million, not $112.9 million from taxpayers, plus $5.4 million for the capital improvements for the local school district.  The total tax rate was $36.40.  The collection was only at 82.8% but the city had a higher ratable base. This means a house assessed at $100,000 paid $3,640 in taxes.

The 1997-1998 SFY Budget, the city collected $94.4 million, $87.5 million plus $6.7 million for capital improvements for the local school district. The total tax rate was $41.85. This means that $100,000 house paid $4,185 in taxes. Why? Because Mayor Schundler allowed the ratable base to collapse. New construction would solve the problem but Schundler believes in abatements which are exempt from the ratable base.  The budget is struck based on the city's value or ratable.

Additionally, 1998 was also the year that Mayor Schundler created the Municipal Utilities Authority (MUA).  The MUA became a cash cow for the budget by bonding $31 million for the 1998 budget and transferring $16 million into the next nine year budgets.  Water rates shot through the roof.  The MUA will have six rate increases during this period.  Schundler bonded for operation expenses.  Water/Sewer become another tax bill and Schundler tells another lie.

The declining ratable base also effected the county and school tax rates.   As an example, the school district received $90 million in 1989, the tax rate was approximately $10.00.  In 1997, the school district received $72 million but the tax rate was close to $14.00.

As of May 1999, the total tax rate is $44.62.  Schundler will collect more than $100 million, not including an extra $10 million for the school capital budget, he wrote in a tax letter dated January 26, 1999,  "Happily, compared to 1992, the total property tax levy which Jersey City collects from local property owners has increased by less than 1%...No other City in the region has done such a good job of keeping property taxes from rises...City spending and debt are under control." Schundler also states, "This quarter, the City portion of your bill fell slightly compared to last quarterly bill."

His lies are simply amazing!

In 1992, the city did not have lien and MUA money.  In 1999, Jersey City had those advantages but it needs $31 million to close the budget.

In Schundler's January, 1997 tax letter, he inserts a quote from Time Magazine, December 5, 1994:

Jersey City's fiscal proposals
presents "a national models
of urban reform."

What a joke!