Ezra J. Temko

Please click here to open a PDF copy of the proposed budget developed by City Staff.  The budget includes a proposed tax increase of 12 cents that covers current expenses, pays for 5 new police officers, and further funds our contractual obligations regarding our pension fund and retiree health care.

I currently have a plan that would cost about $18/year instead of the proposed $119 a year to meet our obligations.

In approaching the city’s budget, I have two responsibilities that I bring to the table. The first is ensuring the fiscal sustainability and health of our city government. Services need to be efficient but funded and our long-term fiscal health is vital. Second is the impact of our budget on taxpayers. Particularly in this economy, any additional impacts need to be minimized as much as possible.

Our operating budget contains a few new items this year. Among them are five new police officers, pension fund monies, and retiree health care monies.

Note: The Police Chief came to our meeting last night and presented some information. I am hoping to have that information soon and will post some of it on here. Also, it turns out that staff was suggesting no increase was an alternative but was not in fact saying they did not feel it was needed. Regarding the police officers, I am not prepared to support any additional police officers. I am supporting in our budget the increase from 2 part-time to 2 full-time dispatchers. However, I have not seen the justification for the particular 5 proposed police officer positions. I understand that city council showed interest in increasing its police in response to crime in neighborhoods and it would have been very difficult for me to oppose one additional officer focused on community policing and working with neighborhoods to start and enhance neighborhood watch programs. However, the current proposal does not correlate to the need that was presented to council and there has not been any evidence presented to council yet that the proposed officers are a need that is currently lacking. I have the utmost respect for Newark’s police officers and this is not a reflection on the police department. Furthermore, with city staff no longer recommending this increase, I am confident that our Police Department will be able to continue to function successfully at its current personnel levels.

That being said, even with a decrease in crime, I am not satisfied with the current levels of crime and safety in Newark. During our comprehensive planning discussions we outlined that council will need to host workshops on issues such as affordable housing. I believe we also need to host a workshop or series of workshops on crime and safety. It is important that our community address this issue proactively and come up with a long-term plan to implement intentionally to make sure we address this issue.

The pension fund and retiree health care fund are underfunded contractual agreements. To that end they do need to be funded. I do not believe we should postpone this and make it worse or put forward a band-aid solution. The city will need to address its fiscal health as a long-term project and putting monies towards our pension and retiree health care funds is not going to work to put our cash reserves where they should be. Ignoring these contractual obligations would be a bad beginning to restoring our city’s fiscal health.

Finally, I believe the city is woefully behind the curve when it comes to recycling. I do believe we need to commit the funds to proceed this year with both curbside recycling and the Main Street recycling program. The operating expenses associated with the Main Street recycling program is $15,000/year, which at 0.05% of our 2009 budget expenditures I believe is affordable.

I would like to profusely thank Finance Director Dennis McFarland for all the work he has put into this budget and our vetting of it. We received a memo with potential revenue enhancements and cost reductions, some of which I felt were appropriate and some of which I felt we should not utilize.

In terms of providing ongoing monies towards the pension fund and retiree health care, I looked at the revenue enhancements and cost reductions and came up with a proposal that involves some additional user fees, some cost savings, and in terms of new taxes a 1 cent property tax increase and a 0.8% electric utility margin increase. If taxes were to be raised above this, I think it would be inappropriate in this economy and funds would need to be provided for low-income residents. I will explain my proposal more in-depth but first want to comment on a few other relevant items.

• Newark code allows the Finance Director to exhibit discretion and encourages the city to avoid when possible turning off residential electric service during the months of October through March. I believe that the City should put a freeze on all electric utility shut-offs during the Winter months.

• The City of Newark is very reliant on its electric utility. The University of Delaware is a large utility customer. Beyond our moral obligations, it is important for us to quickly move towards renewable energies to ensure that when UD’s contract is up, the university remains a utility customer. After the city’s conservation report is brought to council I plan to request that the Conservation Advisory Commission develop an aggressive Renewable Portfolio Standards for Newark.

• Economic development, and particularly business recruitment and management, is an areas in which the city needs additional support. It is a need we must consider and address in the future.

• The Police Department has a part-time Victim Support Officer, paid by through federal funding. It is important, in order for the city to continue receiving this funding, to implement a transition plan to fund the Victim Support Officer from city monies.

• The University of Delaware subvention does not meet the costs to Newark of servicing the university. This financial support should be higher and renegotiated. The Planning Department applied its fiscal impact model to the University in 2000. That analysis concluded that it cost the City $3.1 million to provide services to the University and that the City received $2.2 million in return. Thus, the University’s impact on the City’s finances was a deficit of roughly $900,000 annually.

• I planned to propose eliminating our $7,000 trolley fare subsidy because I have seen no movement by the state to begin to address the city’s concerns and make the trolley effective and because, particularly with the state’s budgetary concerns, I do not see this on the horizon. However, it is my understanding that we are contractually obligated to continue this subsidy for 2009. If there are not positive changes to the service I will not support continuing this subsidy for 2010.

• Considering the state of our economy, it is even more important that we implement Operation Round Up, a voluntary program that rounds up one’s utility bill to the nearest dollar.  It is estimated this would raise over $50,000/year for economically disadvantaged residents.

The Budget proposal

• First, the Finance Department has lowered its estimate of real estate transfer tax revenue for next year by 270,000, which equates to a 3.375 cent property tax increase. These funds need to be found.

• I support increasing water rates 15% for those outside city limits who use Newark water. This still leaves these customers with a good deal as their water will still cost less than going with a private provider.

• I am proposing to raise our electric utility base rate 0.8%.

• I am proposing that the city no longer provide free yard waste collection or grass clippings collection. However, the city would still make these services available to residents for a fee.

• The State currently has a 50% surcharge court administrative fee. While I do not like the idea of this charge, I believe it is more palatable than property tax and revenues do need to be raised. There is not a good reason for this administrative fee to exist outside but not inside city limits and I believe it would be appropriate for Newark to instate this fee.

• A few additional small but easily implementable fees include raising the fee for reviewing liens, and higher fees for private area lights and a higher license fee for T-Mobile, associated with a new antenna at the West Main Street substation.

• This proposal eliminates the 5 additional police officers from the 2009 budget.

• The City has already realized a savings of $17,000 due to lower audit fees.

• As previously stated, the Main Street recycling program was not included in the initial budget proposal and would cost under .02 cents of property tax.

• Finally, I am proposing a property tax raise of 1 cent instead of 12 cents.

I look forward to hearing proposals and thoughts from other council members and working together to make sure that our final 2009 budget continues Newark’s ability to move forward, addresses our city’s financial obligations, and has minimal impact on our taxpayers.

This proposal includes a $64,000 decrease in the capital program and a $105,000 operating budget surplus.

Please click here to open a PDF copy of the proposed budget developed by City Staff.

This budget includes a proposed tax increase.

This is a 12 cent increase for the next year and an 8 cent increase for the following year.  The 12 cent increase is designed to cover current expenses, pay for 5 new police officers, repair sewer lines, buy the recycling cans to initiate the recycling program, further fund the pension plan, and complete initial site work at the Curtis Paper Mill site.  The 8 cent tax increase is aimed at increasing the city’s cash reserves, which have been hurt by past losses in our utility and by our reservoir lawsuit settlement.

A 12 cent increase for 2009 means an estimated increase of $119 for single-family detached dwellings, $66 for single-family townhomes, and $59 for multi-family condominium apartment units.

The city’s budget is an important document because it sets the city’s priorities and programs and has a financial impact on residents.  It is very important that we are extremely intentional about the budget that passes.

To that end, I encourage you to

1) Read over the budget.  Again, you can do so by clicking here.

2) Come to Monday’s public hearing on the budget.  It is at the beginning of the agenda for the city council meeting.

3)  Come to a special town hall workshop meeting being hosted by the West Newark Civic League.  Finance Director Dennis McFarland will be at this meeting to answer any questions and discuss the budget.  This meeting will be in Council Chambers at City Hall on Thursday, November 20, at 7pm.

I have included responses in the comments section.

Regarding the second 8 cent tax increase to restore our cash reserves, at what point with this increase will our cash reserves be restored to an appropriate level? Would it not be appropriate to sunset this tax increase to that projected year or the year after, or to at minimum require occasional re-authorization of this 8 cent increase?

Also regarding the 8 cent increase, what are the financial and/or other repercussions if we were to wait a few years until the economy picks up to retain our credit rating and enhance our ability to borrow to fund future growth opportunities?

Please comment on how this tax increase and our financial situation overall relates to our ability to have a $10/$15 million referendum this April regarding open space, which I view as especially important in case any movement is available on the country club to purchase at least a portion of it. If our situation in this regard is unfavorable, what would make it more favorable (or less unfavorable)?

These are obviously tough economic times and many seniors have seen increases in their rents and their energy costs but not in their social security check. Do we have any current programs aimed at tax relief for seniors? If so, what are they? If not, are these allowed under state law? What can be incorporated into this tax increase that is mindful of seniors in our community in relation to their property taxes?

What services are non-essential that could be suspended for a few years? i.e. if council did not vote for any tax raise, what are options for what would be postponed or changed to make up the difference?

Can we adopt some ordinance with the budget that would match/link tax rate changes to an inflation index automatically?

Are there other fees that we can raise that will also include the university in revenue-generation instead of just looking at a property tax increase?

I would like to see an additional $30,000 in the budget regarding recycling so that the Main Street recycling program can potentially be instituted in the upcoming year.

Are water rates being changed with the budget or in a different ordinance? The budget notes we will likely have to increase water rates approximately 15%. What is the average $/customer/year on this? In the WRA report we received, it was suggested to raise water rates $50/year inside the city and outside the city by $100-$200/year. The budget does not differentiate between customers inside and outside the city.

Regarding the pension contribution, the budget states that council can choose whether to use the portion of the pension contribution for improving the funded status of the pension plan or to increase benefits to existing retirees (or I imagine some combination). Are we selecting which option to proceed with during the adoption of the budget or at another time? What are the benefits/fallbacks of each option?

This budget includes a continuation of the $7,000 subsidy for the trolley. Has DelDOT worked to address any of our concerns that we stated our funding was contingent on that we laid out in May?

Replace 2-166 (a) with the following language:

The committee shall consist of 8 members, appointed by the mayor with council’s approval, representing the following:

(1).  The Mayor or designee.
(2).  The City Manager or designee
(3).  The University of Delaware president or designee.
(4).  The Student Government Association president or designee.
(5).  A University of Delaware student residing in the City of Newark.
(6).  A University of Delaware student residing in the City of Newark.
(7).  A Newark resident who is not a University of Delaware student.
(8).  A Newark resident who is not a University of Delaware student.

Replace 2-165 (a) with the following language:

The Council of the City of Newark hereby creates the Newark Town and Gown Committee, hereinafter called the committee. The committee’s purpose shall be advise Council in matters concerning the relationship between the City of Newark and the University of Delaware and to facilitate resolution of conflict and build bridges of collaboration between the University of Delaware and the Newark community. The committee’s membership shall include representatives of the City of Newark, the University of Delaware, and the greater Newark community. In carrying out its duties, the committee will work with university and community stakeholders to:

• Develop, investigate, and implement policies consistent with the purpose of this committee, and ensure relevant stakeholders are involved in decisions affecting them.
• Collaboratively address issues of mutual concern or interest, such as safety, communication, community involvement, transportation, quality of life, campus planning, neighborhoods and off-campus student housing, and educational partnerships.
• Seek opportunities for cooperation, partnerships, and enhanced relationships among university and community stakeholders.
• Encourage and support volunteerism, service learning, and other community improvement efforts.
• Promote, support, initiate, and/or organize activities and programs consistent with the purpose of this committee
• Facilitate sharing of human and intellectual capital between the University of Delaware and the Newark community
• Develop and enhance communications, dialog, and open lines of communication between the University of Delaware and the Newark community.
• Promote mutual respect, collaboration, and interaction among student residents and non-student residents in the city’s neighborhood communities.
• Recognize and honor town-gown partners.
• Other programs, projects, and tasks consistent with the purpose of the committee.

Replace 2-166 (d) with the following language:

(d)   The committee shall hold meetings a minimum of eight times a year; if necessary, the committee may schedule additional meetings.

Election - November 4

Remember to make sure to do your civic duty and vote on Tuesday, November 4!

If you would like to see a sample ballot or find out your polling place, visit http://pollingplace.delaware.gov/

There will be a community yard sale on Saturday, October 4, from the morning on.

Participating neighborhoods include: Abbotsford, Christianstead, Covered Bridge Farms, Fairfield, Fairfield Crest, Nottingham, and West Branch.  Be sure to check it out!

The following is from a Delaware Department of Transportation press release:

Newark – The Delaware Department of Transportation (DelDOT) announces that preliminary work has begun in preparation for a planned repaving of a portion of Elkton Road and Christina Parkway/Rt. 4 in Newark. The concrete portions of Elkton Road between the Maryland state line and Casho Mill Road will receive a new driving surface, as will Christiana Parkway between Elkton Road and College Avenue.

An ultra-thin pavement overlay will be applied to the deteriorated concrete. The special asphalt mix is not as porous and will not permit moisture to seep through to the concrete below it, thus preventing further deterioration. It is expected that the new surface will last five to six years, providing relief for motorists from potholes and crumbling road surfaces until a major Elkton Road improvement project begins in Fiscal Year 2011 and the roadway is removed and replaced.

Crews are currently working in selected areas of Christina Parkway to prepare shoulders and fill potholes. The overlay work will begin on Christina Parkway during the week of September 29th. Crews will then move to Elkton Road and overlay the concrete surfaces. The project is expected to be completed by the end of October.

Harmony Construction is the contractor for the resurfacing project, which is expected to cost $900,000.

For the latest in traffic and related information, visit DelDOT’s website at www.deldot.gov.

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City council announced last night that it has reached an agreement in principle with Kyle Sonnenberg to become the city’s next manager. Kyle will begin as Newark’s city manager on November 1.

I very much look forward to working with Kyle. The experience and perspective he will bring to the city, along with his commitment to infrastructure, team decision-making, civic engagement, and the environment will help move Newark forward. Kyle has been in Newark before - he received his Master in Public Administration from the University of Delaware. He is currently Assistant City Manager in Fayeteville, NC. I hope everyone will join me in warmly welcoming Kyle back to our community.

I want to again publicly thank Roy Lopata for the fantastic job he has done as interim city manager. I can say that I never felt the effects of having an interim city manager - I just knew we had competent responsive effective management that brought me up to speed and worked to move our city forward. Roy deserves credit for his good work including keeping our city moving smoothly and forward over the last half year and leading our city through the resolution of our reservoir lawsuit.

For the Newark Post article on Kyle Sonnenberg’s appointment, click here.

Click here for the article reporting on the public meeting with Kyle from the search.