Monday, March 26, 2012

Middletown residents: Oppose excessive taxation


Also published online today over at the Asbury Park Press is the following letter by Gerry Deceglia, a resident of Middletown. I don't know Mr. Deceglia but he makes a valid point pertaining to tax revenues and spending cuts as they pertain to the Township budget. While I don't think he wrote is 100% accurate, it does show a level of frustration that residents have towards those that have been running Middletown for the past 30 years:

Words cannot describe how deeply upset I am that not even a full year has passed since Middletown officials last raised property taxes, and now they are at it again.

Politicians do not seem to care one bit how impossible it is becoming for citizens to even breathe under all this excessive taxation.

 People are struggling to find and/or hold on to their jobs, keep their homes, keep food on the table, deal with $4-a-gallon gasoline, and Middletown officials want to raise our taxes again? All in order to pay for higher health care costs for township employees that they themselves should be paying for?

 We residents simply do not have any more money. Along with having township employees pay more into their own health care plans, just as private-sector workers are being forced to do, what about township officials making some real spending cuts across the board to fall in line with current tax revenues?

 This excessive taxation is no longer just simply unfair. It is downright diabolical. It is also unsustainable.

The definition of tyranny is oppressive government. How many other Middletown residents feel that government has become oppressive? If you feel as I do, please come to the meeting on April 30 at the town hall in Middletown and speak up.

Do not allow these politicians to force us out of our homes, our town, and our state. Enough is enough!

 Gerry Deceglia 
 Middletown


21 comments:

Legion said...

Gee Mike, why post this if you believe that it isn't accurate?

In any event, take a look at the facts:

http://www.state.nj.us/treasury/taxation/pdf/lpt/gtr11monmouth.pdf

You'll see that Middletown is right in the middle of the towns in Monmouth County in effective tax rates, with many towns having much higher rates.

This year the proprosed budget goes up by less than 2%, so I think these general rankings will hold for next year as well.

And, didn't the CFO say that the employees of the township were paying more towards their healthcare than ever before? Following state law or higher?

Yeah.

Some people just try to make something out of nothing, but the facts get in the way...

Anonymous said...

Mr. Deceglia is actually Ms. Deceglia.

MiddletownMike said...

My bad

As I stated, I don't know the person so I apologize for my mistake.

MiddletownMike said...

Actually Legion the tax rate goes up by 2.5% if you consider the cap exemptions not included in the cap.

And to answer your question as to why I posted this letter, I did so to show not everyone is happy in the "utopia" that is called Middletown.

As I stated, I don't know this person but based on the tone of the letter I would say she identifies with the TEA Party, which is interesting to me.

The Bayshore TEA party has been very supportive of those that are in office in Middletown and have never spoken a bad word about them even while the local tax rate is increased nearly 18% since 2010.

Anonymous said...

The Township will be implementing a Cap Bank which allows them to collect 1% above the budget, so the rate should be 3.5%. This is in ordinance 2012-3057 and will have a public hearing at the April 16 meeting.

Legion said...

Well, maybe not everybody is happy, but the majority is.

Mike, you've got your numbers incorrect. The total amount to be raised by taxes is up 1.97% over 2011 in the proposed budget. You can get the figures from the proposed budget on the township website.

The proposed budget does NOT keep anything outside the cap, even though it could have.

How about the comparative rates, Mike? Does it seem that Middletown is so far above "everybody" else?

Anonymous said...

There's a difference between a 2 percent cap on the tax levy and an increase in the municipal tax rate.

As always figures lie and liars figure!!!

The Middletown administration is good at that crap.

MiddletownMike said...

Legion,

Overall spending is up by 2.7%, the municipal tax rate will increase by 2.5% while the tax levy will increase by 1.97%.

Those are the facts as I know them.

Anonymous said...

Legion, do our neighboring towns have reigning party bosses whose law firms handle all bonding, debt? Look to motivation for how things are done around here. What kind of things are outside the state 2% cap? Debt. Healthcare. What else?

Legion said...

Mike -

You can't go by the tax rate change because the assessment changed. That's why the state law looks to the levy, the amount to be raised by taxes, and places the cap there.

Depending on your reassessment, you should see a 1.97% increase in your property tax bill.

Anon at 5:33 - take a look, this year the TOTAL AMOUNT RAISED BY TAXES increase by 1.97%. The TC is keeping NOTHING OUTSIDE OF THE CAP.

As far as bond ratings and fiscal management:

"Moody’s Investors Services has affirmed its AA2 rating on Middletown Township’s $67 million general obligation bonds.

In a statement issued on Friday, March 23, the rating agency said,

“The Aa2 rating reflects the township’s sizable tax base, low debt profile, and sufficient liquidity and reserve levels. The affirmation also considers the township’s narrow fund balance of $2.14 million (or 3.5% of revenues) in fiscal 2010. The primary driver of the $3.70 million fund balance drawdown was due to an influx of negative tax appeal judgments following the 2009 revaluation, which resulted in $1.3 million impact on fund balance. Additionally, decreased state aid and increased health care and retroactive labor salary expenditures further pressured operations. However, in fiscal 2011, new management responsively conducted a reassessment of assessed valuation and reduced the budget by 5.8%. The unaudited year-end fund balance for fiscal 2011 is estimated to be $5.87 million (or roughly 9.2% of revenues). Moody’s expects the township to improve and maintain liquidity and Current Fund balance to reported unaudited figures. Inability to achieve such levels, will result in negative rating credit pressure.”


Pretty good, huh?

MiddletownMike said...

Legion,

The tax rate is what matters to people the most, not the tax levy. Some people will pay more and some will pay less based on a their assessments.

If you don't understand that read today's editorial in the APP, they explain it very well.

Legion said...

Mike -

I apparently understand this better than you do. A County is different.

If the town's levy had remained flat to last year the tax rate still would have increased because the valuation went down.

But let's do go back to the rates in Monmouth County because it shows where Middletown stands. And do let's discuss Moody's bond rating because they note the town's fiscal management.

What do you have to say about those things?

Anonymous said...

Legion 5:58 p.m.,

So who are they going to put the "heist" on this year ? The library again or maybe more from deferred school taxes? Patronage costs money !!!

NOT GOOD ,just more of the same ole,same ole TC crap... But you already know that as one of them

MiddletownMike said...

Yes Legion,

You understand many things bethan the rest of us. I know it because you tell us it's so.

As for Moodys it's the same story every two years, Middletown is great, Middletown is fabulous. Nothing here to see just keep moving along.

It was shown during the financial crisis meltdown that Moodys is corupt and "sold" credit ratings to most of the largest players in the financial sector.

Seeing how Middletown GOP boss Peter Carton is also the towns bond attorney and works at the largest law firm in the state that issues bonds, I wouldn't expect anything less from Moody's.

Just because you have the ability to use your credit card doesn't mean you should. Middletown's bonding debt is over $70m and debt service is near $4m annually if not more.

Pay that debt down and the tax rate/levy will go down accordingly and provide tax relief for Middletown residents without needing to take money from the library, TOMSA or the school system.

Anonymous said...

I'm a bit confused. I thought you guys want more spending, and higher taxes to pay for that, since people should pay their fair share. But it's good to see some liberals opposed to higher spending and taxes. I'd like Mike to elaborate on increasing federal spending. And do you think federal taxes should go up or down?

Anonymous said...

What in H--- do federal taxes have to do with local property taxes,anon 4:55 and what makes you think anyone,regardless of party affiliation,wants higher taxes. More of the delusional BS from the airhead republicans in this town!!

Just another line of crap to avoid the REAL local issues,which clearly are mismanagement by the republicans who clearly illustrate their inept abilities time and time again.

Legion said...

Mike -

When you indicate that the town "takes money from the school system" you kind of show that you don't know what you're talking about.

"Deferred School Taxes" is an accounting measure allowed by law that gives a tax break to the citizens of a town because of the imbalance between the town's calendar year budgeting and the school's fiscal year budgeting. No one is "taking" anything.

Educate yourself:

http://raressential.com/Deferred%20School%20Tax%2002.pdf

MiddletownMike said...

Legion,

I am well aware of what deferred school taxes are and how they are used. I also know that those deferred taxes are to be returned to the school system.

Currently Middletown owes the Middletown school system over $61M with no intention of paying it back.

You see, unlike other towns that use or have used deferred taxes in the past such as Holmdel for example, have returned the deferred taxes back to the school system.

The problem that Middletown now has is that they cannot repay the money back because once they do the whole amount comes do.

This will be an issue if the BOE needs to change it's calendar year to coincide with moving the school board elections to November. As it stands now, as long as the BOE keeps its budget below the 2% cap this wont be an issue but if the budget needs to be voted on by residents there is now way the town can defer taxes.

I have asked several lawmakers about this and no one has been able to give me an answer about this.

The issue is much more complex than what former Middletown CFO Bob Roth presented in his little manifesto, which I am aware of and have read several times in the past .

And BTW, I should mention that not all municipalities defer taxes.out of the 566 towns in the state only about a 3rd of them defer school taxes.

Patriot1776 said...

I know Mrs. Deceglia quite well actually, and what she's really driving at in her opinion piece is that SHE HAS SIMPLY HAD ENOUGH!!! Whoever it was here who said the majority of Middletown residents are happy with how high property taxes are needs their freakin head examined.
And the fact that some continue to try and downplay the tax increase by saying that it's only 1.97%, and that it's not as bad as other towns, well you all need your freakin heads examined too! I don't care how small an increase it is, a tax increase is still a tax increase no matter how you look at it. Taxes in general are downright tyrannical in this country with 50% or more of our annual incomes be stolen by some form of tax. The people have had enough quite frankly and we are tired of being forced out of our homes by these ridiculous and tyrannical property taxes especially. I don't even recognize the country that I am living in anymore. This isn't America!!! We're turning into a socialist borderline communist nation and imho it's time for a straight up tax revolt!!!It's time to stave the beast of big government and take our Constitutional Republic back!!! This is what tyranny feels like and it is only going to get worse if we just sit back and expect thing s to change without some good old fashioned patriotic civil disobedience. The founding fathers are rolling in their graves right now wondering how in the world did we ever let things get this bad.

Patriot1776 said...

I know Mrs. Deceglia quite well actually, and what she's really driving at in her opinion piece is that SHE HAS SIMPLY HAD ENOUGH!!! Whoever it was here who said the majority of Middletown residents are happy with how high property taxes are needs their freakin head examined.
And the fact that some continue to try and downplay the tax increase by saying that it's only 1.97%, and that it's not as bad as other towns, well you all need your freakin heads examined too! I don't care how small an increase it is, a tax increase is still a tax increase no matter how you look at it. Taxes in general are downright tyrannical in this country with 50% or more of our annual incomes be stolen by some form of tax. The people have had enough quite frankly and we are tired of being forced out of our homes by these ridiculous and tyrannical property taxes especially. I don't even recognize the country that I am living in anymore. This isn't America!!! We're turning into a socialist borderline communist nation and imho it's time for a straight up tax revolt!!!It's time to stave the beast of big government and take our Constitutional Republic back!!! This is what tyranny feels like and it is only going to get worse if we just sit back and expect thing s to change without some good old fashioned patriotic civil disobedience. The founding fathers are rolling in their graves right now wondering how in the world did we ever let things get this bad.

Legion said...

Patriot -

Yeah, I can see how your house in Middletown, your Lexus SUV, your central air, your wireless internet, your 80" flat screen (with 3-D glasses) and ready access to food, entertainment and health care makes you feel like you are living under "tyranny..."

Go ahead, organize a protest of the "oppressed" and commit some acts of civil disobedience. Better yet, have your gardener, or the kid who details your car make the act for you...

LOL