State of the Borough Address 2009 Commissioner Neal Rochford

Wow, what a year. And who knows what's to come? To quote a famous line from a Bette Davis movie: "Fasten your seat belts, it’s going to be a bumpy ride.”

Borough finances in 2008 had many bright spots and challenges, just as the state and the nation continue to grapple with the economic downturn. Let me start with the successful conclusion of the reassessment process.

After many months of fieldwork and analysis, the property owners of Haddonfield received their new property assessments. As a reminder: the new average assessment in Haddonfield is $494,000, and the average Borough portion of your tax bill is about $1,700. The Borough portion of your total tax bill is 15%.

Starting in January, informal hearings were conducted in which some 1,200 appeals were considered. Tom Colavecchio, the Borough’s tax assessor, and his team worked tirelessly to hear from everyone who had a question or concern regarding the new assessment.

I am proud to tell you that 97% of the informal appeals were successfully satisfied. Of the handful of appeals that were formally filed with the County all have now been settled. This is amazing accomplishment!

Tom Colavecchio did an outstanding job and he should be commended. He did such a great job for Haddonfield that Haddon Heights hired him to clean up their recent reassessment issues.

In February, the Commissioners introduced the budget for 2008. The budget was tight especially because of a new state regulation requiring municipalities to limit tax increases to 4%. After we had introduced the budget, the state cut $160,000 in municipal aid to Haddonfield. That’s what I call a migraine!

After careful review of the budget, tough spending cuts were made so that the 160,000 shortfall was not made up through higher taxes. Especially hard hit was our Police Department, with the elimination of a lieutenant position within the department.

As we prepare for the 2009 budget, several revenue challenges are being monitoring closely:

1. Is the state going to again cut municipal aid? And by how much?
2. A decline in parking meter revenue brought on by the economic downturn.
3. A decline in permit fees for construction caused by both the economic downturn and Council on Affordable Housing (COAH) restraints on building within the borough.

On the brighter side, the Borough tax revenue is stable with a slight rise in the overall bulk assessment, which means slightly more revenue. The Borough's tax collection rate is 98.95%. This number is important because if it goes down we have to put more funds in to an account called "Reserve for uncollected taxes," which puts more pressure on us to increase taxes overall.

The Borough fund balance (our surplus) is also stable, which helps us to keep tax increases lower. The trick is not to use too much surplus in one year because it will need to be made up in future budgets.

Also on a positive note: last summer we refinanced most of our short-term debt to permanent debt right before the financial crisis really tanked the market. I am pleased to tell you that Moody’s, the bond rating agency, has maintained a very high AA rating for the Borough’s debt. This action lowered our overall debt service to our advantage. I would like to thank Sharon McCullough, our Borough Administrator, for her impeccable timing in going out for the long-term financing.

Maintaining important infrastructure projects such as the reconstruction of Tanner Street is critically important. We are working with the NJ Environmental Infrastructure Trust Fund to apply for 0 % loans for future sewer and water projects. This program has the potential to save the borough hundreds of thousands of dollars in debt service to complete much-needed capital projects.

Sharon McCullough is working to present the Commissioners with a budget that is below the 4% state-mandated tax increase cap. It is our goal to preserve the services that Haddonfield residents have come to expect from their local government.

We will introduce the 2009 budget in February. Because the state is not going to introduce its budget until March, we will not know what the final state aid figure for Haddonfield will be until later then usual. We are not going to adopt the borough budget until latter in the spring, which will be late, but unavoidable.

As part of our commitment to keep tax increases as low as possible during these tough economic times, in future union contract talks we will ask union members and their representatives to work with us to support sensible work rules, realistic wage increases, and the need to control medical and pension costs. Not easy stuff, but we are committed to keeping your Borough government lean and responsive during these tough economic times.

Privatizing trash and recycling was studied early in our term and at that time was determined not to be cost-effective. However, it is our intention to study the issue again at the appropriate time to ensure that the Borough is getting the best value for those services.

Staffing levels, yearly pay increases, sick time, and longevity pay increases are also in the process of being reviewed and revamped to keep cost down.

We continue to review and submit professional services for periodic review. Earlier this year we awarded the auditing services to a new firm for a $15,000 savings. Because of competitive bidding, our communications RFP came in lower this year as well. We also changed professionals for developing our third-round COAH plan, which has also had favorable results in time and cost savings for the Borough.

The 2009 borough budget is going to be an extremely tight budget with shared sacrifice required to make it work.

Tish, Ed and I have agreed to not take any increase in salary in the coming year. This give-back is not going to have a big impact on the overall budget – believe me! – however, we want to send the message that times are tough and we need to keep salary increases in line with that reality.

I am tremendously proud of our Borough employees and to their professionalism and dedication. They should be commended for the outstanding work they provide, day in and day out.

I would like to now report on the Partnership for Haddonfield. As liaison to the Partnership for Haddonfield, I am very happy to report that assessments on properties in the business district will remain unchanged from last year. No tax increase. Even in this tough retail environment, the retail vacancy rate in the business district is just 3%.

A discount incentive on the Haddonfield gift certificate program was so successful during the holiday season that it is going to be reactivated in February for the Valentine's promotion. So remember to get your sweetheart a Haddonfield gift certificate for Valentine's Day. Over 200 Haddonfield retailers participate, so you can’t go wrong.

All of the members of the Partnership for Haddonfield board and staff should be commended for a job well done. They put many hours into keeping Haddonfield’s business district the best in the region.

I would like to take a moment to congratulate both Ed and Tish on what I consider milestone accomplishments in 2008:

Ed, working with the Planning Board, was instrumental in the successful introduction of the new business district zoning ordinance. Thanks to the hard work of Ed and many others, the business district will continue to be a vibrant center for community gatherings, shopping and great restaurants. Thank you Ed.

Tish took Kings Court under her wing and with a lot of planning and execution has transformed the court in to a rejuvenated civic area. It’s beautiful! Already, from Santa coming to town on November 28 through First Night on December 31, the Court's spiffy appearance has been a big hit. Hey, It never hurts keeping Santa happy! I can’t wait until spring when the landscaping is completed and we will have a big reopening ceremony. You're all invited! Thank you Tish.

In closing, I would like to thank the dedicated volunteers of the Lions Club for today’s Breakfast and your ongoing commitment to sight-related programs.

It has been an honor in my capacity as Borough Commissioner to serve the residents of Haddonfield for the last four years. During my first term in office it has been my commitment to work on infrastructure needs within the Borough. It would not be responsible to defer needed capital improvements – especially the road program – that would be passed on for future generations to deal with. I have cherished the time I spent with residents at meetings and individually to help solve their problems and to be responsive to the needs of our community.

I understand in these very tough economic times and that we must stretch every tax dollar to minimize tax increases. As your Commissioner for Revenue and Finance, it is my task to continue to find cost efficiencies and look at new ideas to provide needed Borough services.

I have found that responsible leadership is sometimes saying "yes" and sometimes saying "no." The issues that face us are not always easy. Working together for consensus, listening to one another, and putting the public's best interests first should be the foundation on which we make our decisions.

I would like you all to know that I care. I care about seniors, our youth, and our strong sense of community. We may not always agree on every issue, but I think we can all agree that Haddonfield is a wonderful place to live and raise a family.

I leave you with this quotation from Abraham Lincoln: "Leave nothing for tomorrow that can be done today.”

Thank you.