Winter 2007

Hello, and Welcome to our Winter Newsletter! The last time you read “From the President’s Desk” it was summer and the July heat was upon us. Little did we know at that time, Rich Reinhart would be writing his last newsletter. It was, as always, a heartfelt communication from Rich, who was a very talented guy. I, for one, find it a challenging task to write this communication. For Rich, his words just flowed, and he could easily make the case for, or, against an issue. He is very much missed in our community.

As the summer drew to a close, Rich and the TPA Board realized someone had to step in for Rich. I was nominated and the rest is history. We began to review our charter, roles, and process and we set out to invigorate our role as a community organization. The TPA has been part of the Cape May community, since 1948 and next year will be our 60th Anniversary.

Sixty years! - And all the changes that you have seen in Cape May over those years; the storms that have come ashore, development pressures, buildings destroyed and rebuilt or moved; the choices and challenges that we all still face, yet ensure that Cape May’s treasured past will remain an essential part of its future. One example is the Washington Street Mall, an example of early revitalization (urban renewal), HUD-funded planning and execution. Designed in the mid-sixties and completed in early 1970’s, it now has underground utilities and paved surfaces in need of repair/replacement. Another example is Convention Hall, now in dire need of structural attention or replacement; it was built after the 1962 Spring season storm to replace the original 1907 Convention Hall that was all but washed away.

 
In our last newsletter we were very much embroiled in discussion of Revitalization. The Revitalization committee is now comprised of several subcommittees to review what Cape May might need to do to upgrade and maintain these local “assets” and other diverse improvements. The taxpayers - all residents, businesses and cottagers - and especially the visiting tourists who seek out and enjoy our special town’s uniqueness; all have an interest in the past and future of Cape May. The Revitalization Committee needs our understanding, participation and communications. Support of their efforts will depend on their best efforts and recommendations.

All Cape May stakeholders should consider Cape May’s Revitalization effort because this is “Our Town”. We should try to make every effort to attend public meetings and listen and to voice our observations and opinions. These issues include the Mall, Convention Hall, parking, gardens, gateways, signage and many attached issues to each primary project.

The TPA Board has identified a few issues that have a tax consequence, now and into the future - Revitalization, City Budget, School taxes, and the new emerging issue of the Council of Affordable Housing (COAH). We hope to provide you with some of the important information you will need to make informed decisions.

In closing, I would like to thank the TPA Board for their vote of confidence, and I will continue to do my best for the TPA Board and Membership. As always, you can contact any Board Member with your thoughts by phone, mail or at our website.

 
In our most recent survey of member concerns, the TPA was told quite clearly that School Taxes were at the top of the list --not a big surprise since education is usually the larges draw on any municipal tax base. In order to better understand this issue and further the public discussion on how it ought to be addressed, the TPA has collected and analyzed data and other information related to the operation and funding of our schools. Some of our findings are a bit surprising if not troubling.

Consider this: Last year, Cape May taxpayers provided over $7,000,000 for education - more than that provided for all municipal services.

Last year, 104 Cape May students attended Lower Cape May Regional School District, whose total enrollment is 1900 - and yet, Cape May taxpayers paid 32% of that district’s school budget thanks to a 30-year-old formula, which ignores enrollment ratios in favor of property values.

In other words, Cape May taxpayers provided $51,548 for every Cape May resident Lower Cape May Regional School District.

Last year, the Cape May Elementary enrollment was about 141 students while 104 Cape May students were in Grades 7-12 at the Regional District. Of this total of 245 K-12 enrollment, the overwhelming majority, 70% or more, are residents on federally owned and tax exempt property within Cape May.

In recognition of the burden federal facilities often have on local resources, Congress has enacted so-called “Impact Aid” legislation, intended to assist host communities, like Cape May, to meet that burden. Impact Aid received by Cape May annually falls far short of the elementary school cost burden; and in the case of Lower Cape May Regional School District, no Impact Aid is provided -either to Cape May, or to Lower Cape May Regional School District.

In other words, Cape May taxpayers directly subsidize the services enjoyed by our federal guests. This subsidy annually exceeds $5,000,000.

 
For 2006, State DOE reports showed that, for the Cape May Elementary School, per/pupils costs are some of the highest in the state and student-teacher ratios the second lowest for K-6 districts-due in large part to rising costs and small enrollments. While enrollments appears up for the current school year, for each of the past four years, Cape May Elementary School enrollment has declined. In addition, the percentage of students who entered and left during the last school year was 49.2% about four times the State average.

For the past seven years, fund balances were spent in the Elementary School Budget in order to avoid tax increases. Balances are now running low. What does this all mean? Well for starters, it certainly appears that taxpayers concerns are well placed, but beyond that, what is the “So What” of all of these numbers?

The answer begins, as it must, in civic responsibility. Cape May must meet two essential responsibilities reflecting the shared nature of any community. Our statutory obligation to provide a thorough and efficient education for its children is not to be taken lightly or compromised. But, so too, the fiduciary obligation to raise and spend public funds effectively and efficiently must be met. Too often with respect to school taxes, this obligation has been honored only in the breach.

Clearly, if this perfect storm of realities -small enrollments, high and rising costs, the gross inequity in the funding of Lower Cape May Regional School District and sustained, inadequate Federal support-continues unchanged, steady increases in the Property Tax are inevitable. And we all run the risk of failing in both of those civic responsibilities. This is and should be unacceptable. So before we get to that point, we should all talk together about how we can calm this growing storm.

TPA has begun such an effort. We have met on several occasions with the Cape May School Board to begin this dialogue and are developing a positive and productive partnership. Together with our school officials, we hope to expand these discussions to include local and state elected representatives, as well as, state and federal agencies, all of whom can play vital roles in addressing and resolving these concerns. Please join us in this effort.

Cape May has hired outside council to work through their responsibility and to make recommendations to the planning board on how to address this key area. A recent ruling in response to a challenge brought by the New Jersey Builders Association (NJBA) and others, the state’s Appellate Division invalidated the “growth share” rules of the Council on Affordable Housing (COAH), as well as several other provisions of COAH’s third round rules.

 
These rules guide a municipality who seeks COAH certification in determining its affordable housing obligation. In a ruling issued on January 25, 2007, the court declared that COAH’s approach violates both the Mount Laurel doctrine and the Fair Housing Act. The court has given COAH six months to complete a new rule-making process for the third round affordable housing need. Your association will watch and follow closely how this unfolds. Once decisions are made we will review and make our recommendations.

 
The 2007 City Budget was presented to the Mayor and Council by City Manager, Lou Corea on January 17, 2007.

The City Manager also had a meeting with me on January 18th.

As presently constituted, the budget would require a 2.9 cent/$100.00 of evaluation tax increase.

 
However, since the budget was not to be officially presented until March 6, 2007 with adoption scheduled for April 17, 2007, the Governing Body will have plenty of time to analyze and revise where they feel is necessary.  Your TPA will also be reviewing the 2007 budget over the next few weeks, and will make their recommendations for changes to the Mayor and Council, and the public at the Council work session prior to the adoption by the council.

 
No public hard cost funds have been allocated or spent for the revitalization initiative(s) being discussed. Only contract soft costs have been spent or committed, as follows: draft level plans for Washington Mall (2006) by Remington Vernick; general vision planning by Rhodeside Harwell; reports on Convention hall by A.J. O’Sullivan (2005) and C.H. Johnson Consulting (2006).

Many citizens and taxpayers agree with the concept of “Revitalization”, a term interpreted widely. However, others want status quo and stability with no change and no tax consequences.

Proper process and diligence must take place prior to allocating bond funds for “Revitalization” construction projects. The missing pieces are factual and fiscal justifications and physical technical evidence for needed work. These must be agreed upon, drawn, specified, and estimated by design professionals.

After a petition called for a referendum to defeat a bond ordinance for Mall work, additional appointments were made to expand the Revitalization Committee and gather more community input. Cape May’s original Revitalization Advisory Committee grew out of the Tourism Commission.

 
After the referendum, additional members were appointed by Mayor and Council to study revitalization issues. Eleven committee members now face not one, but several simultaneously emerging topics, consequently subcommittees have been established to focus on specific issues.

The sub committees are: Washington Mall, Convention Hall, Traffic/Parking, and Parks and Grounds. Representing TPA are Hugh McCauley, with Dennis Crowley as an alternate, In addition, TPA Board Member, Bill Murray has also been appointed to the Revitalization effort representing the Cottagers Association. The entire exercise may take more time than was originally anticipated to come to consensus and recommendations. Once that has been achieved, the expense to the City and taxpayers for any of these projects will be considered. Prior to resolving to float one, or more municipal bonds to fund hard costs, the City and general public will have to understand what will be done and the tax consequences.

As these plans proceed, TPA will pursue full disclosure of, what is proposed and why, what it will cost, and how it will be paid for - before decisions are ultimately made by the City Council.

We have updated our website where you can find current agenda, past meeting minutes, articles we have published, and information we have gathered for your review. You can provide feedback online!

 
Due to the inclement weather, the new public meeting time for Rhodeside and Harwell for the Public Meeting will be held in March. Check your local newspaper for exact date, time and location.

Are you Interested in Joining? We would like to thank all our new TPA Board Members who joined us after reading our request in the summer, 2006 newsletter. We have a full twelve person TPA Board now. If you would like to be considered in the future, let us know. This is an excellent way to volunteer and help our community sort out the issues facing Taxpayers. Please give Jack Wichterman a call.

 
We have received a survey form developed by the Revitalization Committee-Convention Hall Subcommittee. The TPA has offered to send the survey with the TPA Winter Newsletter. Please take time to complete the survey and return in the enclosed envelope. You will be helping the Revitalization Committee and the City Mayor and Council to collect information for decision-making regarding this important structure in our City.

The TPA Education Committee is currently reviewing the District Budget for 2007-08. That budget is up for public vote on Tuesday, April 17th. The TPA will report to the public with analysis and recommendation on the budget by April 1, 2007.

 
The TPA will host Assemblymen Mr. Nelson Albano and Mr. Jeff Van Drew at our March 16th meeting at 1:00PM at City Hall. Two topics will be Property Tax Reform and School Funding. Please join us at this meeting and bring your questions.