PAGE 2010-19 MINUTES OF THE REGULAR MEETING OF THE ALLAMUCHY TOWNSHIP COUNCIL HELD APRIL 21, 2010 AT 7:00 P.M.
1. The meeting was called to order at 7:00 P.M. by Mayor Cote.
2. Mayor Cote advised that this meeting was held in accordance with the Open Public
Meetings Act as prescribed by State Statute which was followed by the Pledge of Allegiance. 3. Present: Mayor Cote, Councilman Young, Councilman Ochwat, Councilwoman Schultheis,
and Councilman Sloane. 4. Approval of Minutes: a. Regular Meeting March 16, 2010 as submitted. Motion by Councilwoman Schultheis, seconded by Councilman Sloane, and approved
on roll call vote: AYES Councilpersons Young, Ochwat, Schultheis, Sloane and
Mayor Cote. 5. At this time, Tax Assessor Richard Motyka was present to discuss the pending tax appeals
that had been filed by residents of Allamuchy Township. Mr. Motyka stated that this year the Township has approximately 30 appeals. The request
is a combined $2.5 million reduction in taxes. Usually there are a handful of appeals
but with the economy people are looking to save as much money as possible. Mr. Motyka advised that if the Township were lose these appeals at full value it would
probably amount to $50,000.00 in refunds. It is his job to defend the Township but with
the current real estate market there is a sales price vs. market value ratio. The real estate
market value went down about two years ago. Mr. Motyka added that the State uses the number based on the average of sales. He is going
to ask the tax board to not apply the Freeze Act. The Freeze Act is a stipulation that says
once your assessment has been set by appeal it remains for the next two years. He advised
that he is willing to ask the Warren County Tax Board to grant the reduction in 2010 as
entitled by State Statute but do not apply the Freeze Act in 2011. If the Tax Board does not
grant the request then the Township has a right to file an appeal on the Townships own
assessments. The residents granted the appeal this year would then have their assessments
raised again. The worse case scenario would be a maximum of $2.5 million in ratable base
which equates to a $50,000 refund. Mr. Motyka stated that there are some appeals where the actual sale price was below the
assessment value but these are the appeals the Township can not defend. Investigation just
needs to be done to make sure that they are not bank sales, short sales, etc. He recommended
holding off on revaluation as long as possible. The County likes to have a revaluation every
ten years so he thinks the Township could hold off for another three years. Mayor Cote questioned if it makes sense to accelerate the time frame on revaluation.
PAGE 2010-20
Mr. Motyka stated that it would not be worth the expense as the market is still down.
It will be a while before the market turns around. Councilman Ochwat questioned Mr. Motykas opinion on the Bowers Glen appeals.
Mr. Motyka stated that he will offer a settlement at their appraised value. There have been
eight sales in Bowers Glen ranging from $375,000 - $405,000.00. It is hard to say that these
other homes are worth $425,000.00 when there is nothing else selling. The law states that if
you are assessed more than 90% of true value then you are eligible for a reduction. The
margin of error is 15% of 78% so it works out to 90%. The reduction then goes back to 78%
if the appeal is granted. These houses are all coming in at 92% 93%. These houses are
$380,000.00 homes more or less. An offer to settle the 2010 tax appeals at 78% which is a
reduction of $60,000-$70,000.00 in assessed value per home but no Freeze Act should be
applied for 2011. He feels the Township is in pretty could standing for 2011. Councilwoman Schultheis questioned if the budget needs to be adjusted. Jim Kozimor, Chief Financial Officer, was present and advised that there is no room for adjustment but 2010 will be a very strong added assessment year with the new Baker
Development. Councilwoman Schultheis questioned if this impacts the Special Municipal Services
District. Mr. Kozimor stated that it will impact those homes and will lower their assessments for
next year. Councilman Young stated that Bowers Glen has not been turned over to PVPOA yet. It
will impact the developer.
Mr. Motyka advised that all the towns are facing the same problem with appeals.
The assessments for Allamuchy Township are based on 2003 assessments. The
market peaked after 2003 so Allamuchy Township is still in pretty good shape. Mr. Motyka added that a real estate market does not usually go backwards so this is a unique situation. If the Township wants to do a reassessment then an application has to be made to the County who in turn applies to the State. The Township needs to justify why a reassessment would be required. It would cost approximately $280,000.00 to do a reassessment. Mr. Motyka stated that all the appeals filed in Bowers Glen were done by the same
appraiser. Mayor Cote advised that he usually does not open the meeting to the public at this time
but if anyone from the public had any questions for the Tax Assessor they could be raised
at this time.
There were no comments or questions from the public. PAGE 2010-21 6. Mayor Cote advised that before the 2010 Municipal Budget could be adopted, the
following COLA Ordinance must be introduced: a. # 2010-04 CALENDAR YEAR 2010 - ORDINANCE TO EXCEED THE
MUNICIPAL BUDGET APPROPRIATION LIMITS AND TO
ESTABLISH A CAP BANK. Second reading to take place on May 18, 2010 at 7:00 P.M. Motion by Councilman Sloane, seconded by Councilwoman Schultheis, carried
to introduce Ordinance # 2010-04 on first reading. Roll call vote: AYES
Councilpersons Young, Ochwat, Schultheis, Sloane, and Mayor Cote. 7. Mayor Cote advised that Allamuchy Township got hit this year with a reduction in state
aid. The Township lost $110,000.00 in state aid. Each department was reduced except
the road department budget. This exception was as a result of the cost of salt as a result
of a bad winter. There was an emergency expenditure that needed to be included in
the 2010 municipal budget which means an increase in this years road budget. The loss of revenue from the State and the Panther Valley Inn and the increase in the road budget
created a shortfall of $203,000 in revenue this year. The budget was under budgeted last year so the shortfall needs to be made up this year. Mr. Kozimor advised that since the Township is short $203,000 on the tax levy cap, an
application needs to be made to the State. A resolution will need to be adopted in May
authorizing the Township to go to the State to apply for that waiver. The State has worked
with the Towns and hopefully that waiver will be granted. An application will
also be made to the State asking for transitional aid which will go towards the tax increase.
The transitional aid used to be called discretionary aid and the Township is asking for all the
$203,000.00. All of the $203,000.00 wont be received but hopefully something will be
awarded. The municipal tax rate increase this year is $ 4.2 cents without any state aid being
awarded. Mr. Kozimor stated that by funding the road department budget properly this year the budget will not be a problem next year a long as proper management is done on the overall budget.
The school is going to increase $ .01 cent and the county portion is not suppose to increase.
The only unknown increase is the high school. The average homeowner should experience
a couple hundred dollars increase. Councilwoman Schultheis stated that since the tax rate is going up she wanted to make sure
that the Township would not be penalized any further with a greater reduction in state aid.
Mr. Kozimor felt that the State would look at the overall picture which deals with audit practices, wage freezes for teachers, etc. At this time, motion was made by Councilman Sloane, seconded by Councilwoman
Schultheis, carried to introduce the 2010 municipal budget and to pass the following
resolution as read by the Municipal Clerk (ATTACHMENT 1). Roll call vote: AYES Councilpersons Young, Ochwat, Schultheis, Sloane, and Mayor
Cote. PAGE 2010-22 8. ENGINEERS REPORT/ACTION LIST: There were no items requiring action at this time. Councilwoman Schultheis stated that she wanted to make sure that Maser Consulting
responds to the letter from the State of New Jersey, DEP, regarding the N.J. Environmental
Infrastructure Financing Program. The letter is dated April 15, 2010 and there were
a number of issues that needed to be addressed regarding the permit process for the
Wastewater Treatment Plant Upgrade. Mayor Cote advised that he had spoken with Mr. Cutler regarding the Lopate Property
and he advised that proper permits on this property have been issued.
9. PUBLIC SESSION a. Isobel Weill, Ajax Court, was present to state that that there were 3 people who had met
with Councilwoman Schultheis on this date to discuss the new playground and trail
program. The meetings will be held the second Monday of every month. There will be
four committees formed - a fundraising committee, a playground equipment committee,
a pavilion and picnic table committee and a trail committee. This project should now get
off the ground. b. Lynne Kramer, PVPOA President, was present and stated that there was a landslide
across from the PVPOA Building in the new Baker Development. She was
wondering what precautions are being taken so this does not happen again in the
event of another rainfall. Councilman Sloane stated that the water underneath the frozen ground broke loose.
The property was going to be restored and this should not happen again. Ms. Kramer stated that she understood what had happened but she is concerned so this
does not happen again. She was also concerned about the runoff into the Village of
Old Farm retention basin since PVPOA will be taking that basin over eventually.
Councilman Sloane suggested that Ms Kramer present this matter to Engineer Sterbenz
at the next workshop meeting. 10. ORDINANCES FIRST READING: a. # 2010-05 AN ORDINANCE OF THE TOWNSHIP OF ALLAMUCHY
PROVIDING FOR THE APPROPRIATION OF $35,000 FOR THE
PURCHASE OF A PICK-UP TRUCK AND SNOW PLOW FOR THE
ALLAMUCHY TOWNSHIP ROAD DEPARTMENT FROM THE
GENERAL CAPITAL - CAPITAL FUND BALANCE. Motion by Councilman Ochwat, seconded by Councilwoman Schultheis, carried to
introduce Ordinance # 2010-05 on first reading. Roll call vote: AYES Councilpersons
Young, Ochwat, Schultheis, Sloane, and Mayor Cote. Second reading to take place on May 18, 2010 at 7:00 P.M.
PAGE 2010-23
b. # 2010-06 AN ORDINANCE OF THE TOWNSHIP OF ALLAMUCHY
PROVIDING FOR THE APPROPRIATION OF $35,000 FOR THE
PURCHASE OF A PICK-UP TRUCK AND SNOW PLOW FOR THE
ALLAMUCHY TOWNSHIP WATER/ SEWER UTILITY FROM THE
UTILITY CAPITAL - CAPITAL FUND BALANCE AND CAPITAL
IMPROVEMENT FUND. Motion by Councilwoman Schultheis, seconded by Councilman Sloane, carried to
introduce Ordinance # 2010-06 on first reading. Roll call vote: AYES Councilpersons
Young, Ochwat, Schultheis, Sloane and Mayor Cote. Second reading to take place on May 18, 2010 at 7:00 P.M. 11. RESOLUTIONS: a. BE IT RESOLVED, by the Township Council of the Township of Allamuchy, that
the following tax lien is hereby cancelled: Block 717 Lot 87 Lien # 2008-6 in the
amount of $13,458.54.
b. Reappointment of Emergency Management Coordinator Frank Hafner
(ATTACHMENT 2).
c. Approval of the Special Municipal Services District Budget (ATTACHMENT 3).
d. BE IT RESOLVED, by the Township Council of the Township of Allamuchy, that
the following tax refund is hereby approved Block 901 Lot 37 - $5,722.00 and
Block 902 Lot 1 - $47.00.
e. Waiver of Permit Fees Warren County Public Safety Tower (ATTACHMENT 4).
f. Approval of refund of remaining escrow monies Mattars Bistro in the amount of
$2,300.00 (ATTACHMENT 5). Motion by Councilman Sloane, seconded by Councilwoman Schultheis, and approved on
roll call vote: AYES Councilpersons Young, Ochwat, Schultheis, Sloane and Mayor
Resker; ABSTAIN Councilman Young on the approval of the Special Municipal Services
District Budget. 12. OTHER/NEW BUSINESS: a. Approve Change Order - Zitone Construction in the amount of $1,580.00 for the
installation of a pressure reducing valve at the Fire House.
b. Appointment of David Wood to the Land Use Board as a Class II Member
c. Approval of Raffle Applications Allamuchy Township Education Fund 6 applications
Event to be held May 17, 2010 at the Panther Valley Gold and Country Club.
d. Approval of Red Light Permit Frank Hafner
e. Approval of Quote for Salt Shed Repair Anviro Contractors in the amount of $7,420.00.
f. Satellite Dish Request Old Farm Village subject to PVPOA rules. The dishes could not
be attached to the siding or roof. Councilwoman Schultheis questioned if the Township is going to adopt a policy regarding
E-Verify. There is no state requirement but the municipality could adopt a policy. The
policy of E-Verify would require the municipality to verify that the workforce could legally
work in the United States.
Mayor Cote stated that he does not want to hold up this project since the salt bay is empty
at the moment. This matter could be discussed at a future meeting but this project should
go forward as quickly as possible.
PAGE 2010-24 Motion by Councilman Sloane, seconded by Councilman Ochwat, carried to approve
items a through e as presented. Roll call vote: AYES Councilpersons Young, Ochwat,
Schultheis, Sloane and Mayor Cote; NAYES Councilwoman Schultheis (Item e). The Township Council chose to take no position on Item F. 13. APPROVAL OF BILLS AND ADD-ON LIST (ATTACHMENT 6). Chairwoman Schultheis suggested that a detailed budget needs to be given to the Township
Council to show the expenditures to date. Motion by Councilwoman Schultheis, seconded by Councilman Sloane, and approved on roll
call vote: AYES Councilpersons Young, Ochwat, Schultheis, Sloane and Mayor Cote. 14. EXECUTIVE SESSION 8:00 P.M. (ATTACHMENT 7). Motion by Councilman Sloane, seconded by Councilman Ochwat, and approved on roll
call vote: AYES Councilpersons Young, Ochwat, Schultheis, Sloane, and Mayor Cote. 15. Motion by Councilman Sloane, seconded by Councilwoman Schultheis, carried to go
out of executive session at 8:30 P.M. Roll call vote: AYES Councilpersons Young,
Ochwat, Schultheis, Sloane and Mayor Cote. 16. Motion by Councilman Sloane, seconded by Councilwoman Schultheis, carried to award
a contract to EMSA Construction, Highland Park, N.J. for the Water/Sewer Solar Installation
Project in the amount of $453,930.00, to authorize Strunk-Albert Engineering to prepare the
Notice to Proceed and to authorize the Municipal Clerk to prepare documents to request a one
year extension for the solar rebate program. This approval is subject to financial documents
being in and acceptable. Roll call vote: AYES - Councilpersons Young, Ochwat, Schultheis,
Sloane and Mayor Cote. Motion by Councilman Sloane, seconded by Councilwoman Schultheis, carried to accept the
second lowest bidder BOZ Electric, Vernon, N.J. in the amount of $493,976.00 in the event
the financial documents of the first bid documents were unacceptable. Roll call vote:
AYES - Councilpersons Young, Ochwat, Schultheis, Sloane and Mayor Cote. 17. ADJOURNMENT 8:50 P.M. Motion by Councilman Sloane, seconded by Councilman Young, carried to adjourn at
8:50 P.M. Roll call vote: AYES Councilpersons Young, Ochwat, Schultheis, Sloane and
Mayor Cote.
Respectfully Submitted,
Anne Marie Tracy, Municipal Clerk
James H. Cote, Mayor
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