I. Intro / Welcome
Thank you, and Good Afternoon. It is a pleasure to be here with you today and to present this address; this annual report, on the state of the borough, to our guests and visitors, and most importantly to our residents joining us here at the historic memorial municipal building, and those who are taking the time to watch at home on T.V. 36, or on our webpage at www.carteret.net
Over the next ½ hour (give or take), I will attempt to update you on the status of many of the projects in and around Carteret, while recapping our community accomplishments in 2009, and outlining my plans for 2010 and beyond.
Rev. Clergy, Mr. Council President, to the distinguished members of the borough council who are seated behind me, and honored dignitaries, thank you for joining us here today in what marks the beginning of our eighth year as an administration, and hopefully the continued progress, redevelopment and revitalization of our hometown.
II Acknowledgements
Dignitaries – Council – Cmdr. George Lisicki
Senator Vitale-Assemblyman Coughlin- Councilmembers Krum-Diaz-DiMascio-Naples-Sitarz-Bellino-Freeholder Rios-Mayor O’Leary-Bergen-Turner, Freeholder Millie Scott, Sen. Pat Kramer, Mayor Gerbounka of Linden, and Freeholder Jim Polos.
IIIa Budget / economy
2009 presented many challenges to our residents and our administration. The nation was in a great recession - the greatest since the 1930’s, and for most of 2009 the economic outlook was less than promising. Today many economists believe that we will look back on this recession and it will have technically ended in the latter part of ‘09, or the first quarter of this year, but we know that in fact there will be lasting impacts which will continue to take time to improve, and for many of our fellow residents it will take, time to recover.
Locally, we did our part to spur economic growth while at the same time controlling government spending and ever rising property taxes. In fact despite a double digit increase in taxes around the state we were able to work together with the Board of Education to share services and to stabilize the tax rate. Borough homeowners were presented with a net tax increase of only 1.7% in total for the 2009 year.
Far less than the state average of 4-6% or of similar municipalities within our own central New Jersey region that ranged in double digits. And while we were happy to keep a stable rate and minimal increase for 2009, we must challenge ourselves to do better in 2010. The costs associated with this runaway state tax and spending policy, and many unfunded state mandates have nearly bankrupt the state and forced drastic cuts in everyday services and municipal funding, while forcing many seniors and working families from this state.
Over the past 12 months, even in this deep national recession we have realized added rateables and growth in Carteret. From December 2008 through Jan 1 2010 we saw $76.9 million in construction pour into Carteret and we added $30 million in evaluation to our local tax base. In fact we ended 2009 with a rateable base of $1.028 billion in assessed value or the equivalent of $2.7 Billion in aggregate fair market value for private property and improvements here in town.
We aggressively sought every and any grant opportunity made available to us, and we realized over $2.7 million in state, county, and federal grants for 2009, helping with everything from road paving, to environmental cleanup, and from recreational opportunities to capital grants for future improvements like the addition to our veteran’s pier. Between green acres funding and a $1 million grant from Middlesex County’s Open Space fund we now have the dollars in place to expand our waterfront park and double the size of our recreational pier, which will also serve as the entrance to our future marina. We hope to begin this project by year’s end let me acknowledge and thank the Middlesex County Board of Chosen Freeholders, and most especially our own Freeholder from Carteret Ron Rios for lending his voice and support at the county end of this worthwhile project.
During my time as Mayor, we have addressed a multitude of issues and from the beginning were willing to take on any person, corporation, or entity that stood in the way of revitalization. From declaring areas in need of redevelopment, to condemning blighted and abandoned property, to legal action against some the region’s biggest companies we have fought hard for tax payers and our residents. I have on occasion stood here and used this bully pulpit to decry corporate scoundrels and companies of ill repute, and I will continue to do so when needed; but today I want to recognize companies based here in Carteret , some with national and international holdings that have recognized their corporate responsibility to our town, by participating in our Special Improvement fund and even more importantly, those who have agreed to fund millions of dollars over the next ten years to help maintain our Career fire department and emergency services.
These business partners have recognized the burden their businesses place on our budget, and reliance on our specially trained first responders. Companies like Kinder Morgan. B.P. Amoco, and Prime Lube have joined together to fund a new Association, whose sole purpose is to financially support our efforts to keep residents, industry and its employees safe. Thank you to BP Amoco and KM.
IIIb Redevelopment
Despite the national economic downturn, we were able to keep our major commercial redevelopment projects moving forward, creating jobs, adding new tax ratables, and bringing in revenue. We foresee a brighter economic future for Carteret, as the nation climbs out of the depths of this recession.
This past year P.C. Richard completed Phase I of the West Carteret Minue Street Redevelopment project, with the acquisition and expansion of the former Herman’s warehouse into their regional headquarters. Phase II calls for a 33k sq. ft. retail store and 23k sq. ft. clearance center, and was approved this month by our planning board. Richard’s will break ground in the coming weeks, and complete construction by the end of this year.
We worked hard to recruit and we welcome such a well established company, and their development, which when complete will have provided over $12 million in union construction jobs during these phases of work, as well as millions in long term U.E.Z. benefits to Carteret over the next decade.
2009 also brought Graybar Electric Co., a Fortune 500 Company, which has become the latest business to relocate to Carteret, and now occupies the redeveloped IPORT facilities at N.J. Turnpike Interchange 12.
This redevelopment has been part of the state’s “Portfields Initiatives,” and was constructed on Brownfields sites that previously contained 113 acres of inactive landfills, and utilized union trade labor.
Graybar occupies 136,000 sq. ft. of space, and provides distribution of electrical products throughout the nation.
Panatonni, the site developer, and the 3rd largest industrial developer in the United States, has invested over $150 million in this project.
In West Carteret, Verizon just completed its 1st phase of a multi-phase expansion on its data center. The $15m project will provide an additional 47,000 square feet of data storage and communications, and precedes an additional expansion to the northern part of their site, again with our requirement of trade union construction.
Verizon’s development is a leap forward in our economic redevelopment, and an impressive part of our commercial tax base. This is the kind of high-tech industry that can contribute to a wide range of local improvements, with tax revenue and jobs.
On Washington Avenue we again highlighted our efforts to revitalize this neighborhood commercial corridor and businesses with our 2nd annual street fair. The remodeling of our storefronts and new streetscape improvements are continuing to entice businesses and shoppers to Washington Avenue. These improvements benefit our community by building opportunities for small businesses to grow and further expand our tax base by creating local jobs in this hard economic time.
IIIc Capital improvements
As I began to review the capital projects from last year, I realized that one project more than any other signals a new era here in Carteret, and that is the completion of the improvements to Interchange 12, a major transportation link for our residents between Carteret and the rest of New Jersey.
The long-awaited transportation project has been completed. The $85 million in capital improvements to date have already relieved traffic congestion at the town’s shopping districts and on Roosevelt Avenue by redirecting trucks onto the Industrial Highway.
Anyone who remembers the traffic at Interchange 12 understands the incredible value of these improvements, the importance to residential safety – and the convenience to local businesses and industry. We worked diligently with our state officials and the Turnpike Authority to obtain these improvements that have and will continue to enhance the quality of life for our residents.
With regards to local roads last year, we invested over $2 million in grants and capital funds for the reconstruction of Hermann Avenue.
IIId Quality of life
With an emphasis on community-wide safety, our administration secured $216,000 through FEMA’s SAFER program, allowing for the addition of two full-time firefighters at zero cost to our local taxpayers. Our Fire Department’s “First Responders” surpass the traditional functions of basic firefighting, with specialized training to better safeguard our residents and businesses against large scale emergencies, and with skills and tools that will further our efforts towards preparedness and prevention. Through this competitive grant award we have brought the career Fire Department to 22 members including 7 certified Haz-Mat technicians. And of course is in addition to our 2 volunteer fire companies, our career, and volunteer EMT & First Aid divisions, and our volunteer Office of Emergency Management.
By partnering with our Fire Department, my office and the Carteret Business Partnership has continued with our efforts to make Carteret safer for our younger residents, through the establishment of the Bicycle Helmet Safety Program. With a series of workshops and one-on-one assistance, school-aged cyclists and skaters learned to travel Carteret’s streets with safety in mind, as our fire department and FMBA volunteers distributed over 500 bicycle helmets with an allocation of funding through our Community Development Block Grant program. I would like to recognize the Carteret Business Partnership and most importantly Carteret Firefighters FMBA Local 67 for their contributions to this program, and to adding to the safety of our children Borough-wide. Residents of all ages benefited this past year from the programs and services offered through our local Health Department. We funded a number of programs including our extensive Health Screenings and Vaccination Clinics, and we worked closely with state and regional health organizations in addressing issues related to the growing Swine Flu and the West Nile Virus. This past November, we hosted Carteret’s first annual Health Fair, attracting hundreds residents of all ages, to insure our residents have the most up to date information on matters relating to their family’s health and well being.
Following on a commitment I made last year, the Council passed a resolution authorizing the establishment of an installment payment program for delinquent property taxes. Offered by the Borough’s Tax Office, our tax lien relief program allows qualifying homeowners, who have fallen behind on their property taxes, to pay the back taxes in 12 monthly installments. Through no fault of their own, many residents are dealing with the pressure of possible foreclosure, or the sale of their tax lien to financial institutions or real estate entities. This unique program allows the Borough to intervene in the purchase of residential tax liens through public auction, and the avoidance of possible foreclosure on owner-occupied homes because of property tax liens. With the Council’s support, will continue this program for 2010 to help homeowners most at risk for losing their homes.
In less than a year since its introduction, this program has allowed dozens of Borough residents to keep their homes.
The numbers speak for themselves, and last year over 1,000 homeowners took part in our Senior Sewer Rebate program. Since it was first established in 2004, this program – still the only of its kind in New Jersey – has provided over $500,000 in sewer rebates to our seniors, veterans, and disabled residents. Keeping in mind these difficult times, and the additional challenges many face, we have extended the program into 2010 and will again offer a $100 rebate for eligible homeowners. This will put $120k back into the pockets of those who most need and deserve it – our seniors, our disabled residents, and our American veterans.
In 2009 we partnered with “Help Light New Jersey” to provide Energy-efficient light bulbs to Carteret homeowners. Nearly 12,000 bulbs were supplied to Carteret residents through this New Jersey-based organization, and with the sponsorship of the N.J. Clean Energy program. We were proud to contribute to the success of a volunteer organization that earned the 2009 Regional ENERGY STAR Award for Excellence, and that has provided a total estimated energy cost savings of $240k per year to thousands participating Carteret families. This year will again partner with Help Light New Jersey and distribute energy efficient bulbs to an additional 1,000 families.
IIIe Parks
Carteret is a community that recognizes and honors the contributions of those who dedicate themselves to the betterment of our community. From our military servicemen and women, to public servants who have gone beyond the demands of their office and those who have demonstrated philanthropy for a better local community.
It was with great pride that the Borough Council and I joined with special guests this past November at a dedication ceremony in which Carteret Pond became the namesake of one of Carteret’s dearest friends, as we dedicated the John Sitar Memorial Pond, in memory and thanks to Mr. John Sitar and his accomplishments, his charity, and benevolence, in supporting an unending list of local causes here in Carteret.
We also were given the opportunity to acknowledge former Mayor John Tomczuk, who passed while in office, and his wife Mayor Margaret Tomczuk, whose contributions greatly benefited Carteret. Working with the board of education we were able to invest funds to build a new basketball and tennis court complex, and this past November we joined with the Tomczuk family to rededicate Tomczuk Courts, in memory of Mayor John and in honor of former Mayor Margaret, and also in honor of Borough resident and WWII veteran Francis Tomczuk.
All in all, and despite the economy last year was a solid year of growth and improvement for Carteret.
2010
IVa Budget / economy
As mentioned earlier, in 2009 we saw a net tax increase of only 1.7% in total. But the fact is, as low as that was, any increase in taxes at any level of government means more money from our residents, and that is just not acceptable in this day and time. Families are struggling and government must do, what we have all had to do at home, and that’s tighten one’s belt, cut not simply wasteful spending but all spending across the board. This year I ordered a cut of all municipal line items’ and departmental requests and I am pleased to say that I will introduce my 2010 Budget to the Borough Council in the coming weeks, calling for a reduction in spending by $2.5 million under last year’s number. Our proposed budget of $36.8 million will be 6% less then last year and will be introduced with a zero ($0.00) tax increase for municipal residents!!!! While all controllable increases will remain flat or show a reduction, only three areas of the budget will increase; pensions, employee health insurance and salaries; all areas dictated by statute and the outdated formulas used to calculate them. For 2010 the state arbitrators have awarded some groups close to 4%, while the entity overseeing the NJ health benefits plan has raised rates by 18% for municipalities. Add to this the increase in pension costs because of bad investments and non-investments made by the state; and local taxpayers have been straddled with a 300% percent increase in pension costs since 2000 and a 200% increase to health care costs over the past few years. It seems many in Trenton are finally beginning to realize what the rest of us have known for some time – the system is broken, and cannot simply be fixed – it must be scrapped in its entirety.
Our saving grace locally has been our continued growth, which is the key to success here in Carteret; despite these many unfunded mandates and while reducing our own workforce by over 12%, with the added rateables and taxes from new development will allow for a reduced budget and stable local tax rate for 2010; and we call upon the County and Board of Education to do what they must to stabilize taxes as well.
This past month we received our UEZ extension by the State. The benefits and economic advantages offered through this designation have allowed for the relocation of many fortune 500 companies to Carteret and millions of dollars in UEZ tax benefits and capital improvements. During our tenure we have invested over $5 million in UEZ sales tax revenue by improving Carteret brick by brick and block by block. And this $5 million is just a small fraction in the over $72 million in federal, state, and county grants, corporate donations, and endowments that have dramatically changed Carteret for the better. You know, it’s at least once a week that I talk to a resident who mentions that they have a friend or family member visit who hadn’t been to Carteret in sometime and they are marveled at all that we have accomplished as a community and today I join with many residents in saying that I too am proud of what we’ve done in Carteret, and I am proud to lead a rejuvenated community and a great group of department heads and public employees.
This year we will continue to seek out grant and endowment opportunities and we recently applied for federal stimulus under the American Recovery and Reinvestment Act. We look forward to receiving this coveted designation and allotment of tens of millions of dollars in federal tax credit guarantees that will help stimulate additional private sector growth , investment and redevelopment here in Carteret; to create jobs, increase ratables, and greatly contributing to an even better Carteret for the future.
We will also continue to look for additional revenue, not by tax or fee increases but by leasing out municipal space and properties. The council recently approved my administration’s proposal to lease a portion of the finance building to a bank operator, which will be finalized in the coming weeks. And we are in the process of formalizing bids to allow for the installation of telecommunication cell tower / mono-poles to be placed within our public works yards; these alone could generate hundreds of thousands of dollars a year in revenue to the borough. The goal is to continue to think outside of the box and my staff, department heads and municipal employees are doing just that.
IVb Redevelopment
2010 will bring continued revitalization and redevelopment as we embark on a major new redevelopment project. An expansion of one of our oldest industrial businesses in Carteret- Kinder Morgan will utilize 15 acres of their site for the construction of a bio-diesel blending system and storage facility, which in part will hopefully house the new fuels that will meet our needs and drive our local economy. The total construction cost for this project will be $60 million dollars, and will utilize 100% Union labor. In an agreement we will sign next week, the Borough will net $30.2 million in tax revenue during the next 30 years from this project alone.
This agreement with Kinder Morgan, LLC provides for an additional three hundred thousand dollars in roadway improvements and a redevelopment fee of $1 million towards our Health and Wellness Center.
In terms of growth, we have been fortunate that we have not and will not put all of our proverbial eggs in one basket. Our development projects have been divided among residential, commercial, and industrial projects, and while residential growth has slowed, commercial and industrial growth have led the way in 2009, and will again this year.
ASA Apple and F. Greek construction will break ground this summer on their long-awaited 251,000 sq. ft. commercial distribution facility. Its projected construction value is expected to top 12 million dollars, and will create close to 100 new union construction jobs. Most importantly for our residents, when completed, this state-of-the-art facility will add an additional $400,000 to our local tax coffers. Much needed assistance, as we face further cuts from Trenton during these fiscally troubled times.
Our economic development and redevelopment program doesn’t just focus on bricks and mortar though. We believe economic growth and sustainability must include new training and education for our businesses, their employees, and our residents of today, to serve consumers of tomorrow.
To that end, we are partnering with the Intersect Fund in hosting an 8 week advisory course for small business owners and investors. The courses are a part of the Carteret Office of Economic Development’s expanding programs for new and existing local businesses, and will offer training in small business planning, operation, and development.
Encouraging the establishment of small businesses and nurturing their growth have been major facets of our agenda for a strong business community. This program will provide potential investors with an invaluable learning experience and the tools that may prove vital towards the development of a successful business venture.
Nationwide, small businesses have created 64% of private sector jobs over the past decade, and ensuring job sustainability is an essential part of our economic recovery. My administration is focused on giving small businesses the tools to grow, to create jobs, and to drive our economy. These tested resources will bring experience and innovation to our ever-growing small business startup programs.
IVc Capital Improvements
We are also pushing ahead on a number of significant capital infrastructure projects. While maintaining and creating much needed jobs for hard working families, we are taking advantage of the best construction pricing in decades, saving taxpayer dollars at every turn. Much of ours - and our nation’s major infrastructure, was built to help lift us out of the depression of the 1930s. We simply can’t afford not to invest.
To that end this year include much needed signalized upgrades to multiple intersections on the Peter J. Sica Memorial Highway (Industrial Highway). Middlesex County and the Borough have agreed to jointly fund these improvements which will include widening and pedestrian safety enhancements, while turning these areas into four way signalized intersections. Upon completion of this 1.7 million project, the Industrial Highway, which is currently a municipal roadway, will be turned over to the county for them to maintain and improve.
We have worked closely with Middlesex County and the New Jersey Turnpike Authority on planned improvements at the base of the West Carteret Bridge, the lifeline between East and West Carteret. These improvements will include road widening, , dedicated turns, and a new signalized Roosevelt Ave. intersection at Post Blvd and Minue Streets in West Carteret.
And in 2010, our capital neighborhood road paving program will continue to improve our local road network. In addition to the County’s repaving of Roosevelt Avenue in Chrome this summer, a dozen local roadways will see milling and repaving as we invest $3.8 million of capital funds and grants into upgrading our local streets and roads.
IVd Quality of life
These improvements are making differences in the everyday lives of our residents. It was 25 years ago that the N.J. Department of Environmental Protection imposed a sewer ban on West Carteret and our Hill District, prohibiting the establishment of new connections – and growth. Through aggressive grant-seeking, planning, and the establishment of partnerships with the private sector, we have been able to secure over $6 million in federal and corporate funding towards improvements to our sanitary sewer system, and the state recently announced that the borough’s 25 year-old DEP mandated sewer ban has been completely lifted, paving the way for further growth. This year we will utilize $4 million in NJEIT Funds to construct a new sewer main under the Turnpike connecting West Carteret to Carteret Proper as we prepare for future growth in West Carteret.
Private enterprise with the support of this administration and the utilization of state and county home funds will open 10 additional units of affordable senior housing; this is currently being constructed on Fitch Street, adjacent to the Roosevelt Ave. Commons, where 16 units of senior housing were welcomed to the Borough in 2006. “Fitch Street Commons” will join a formerly abandoned property that has been rehabilitated with $736,000 in D.C.A. funding.
We recently announced that CARA owned structures on Washington Avenue will be renovated to provide apartments for low and moderate-income veterans. Using RCA, CDBG, and county funds for renovations, we will be out to bid on 5 units of veteran’s housing by this spring. Our returning heroes will take comfort knowing that Carteret will stand behind them and provide transition housing for them to return to, and start and raise a family.
IVe Parks
Many of the improvements in the quality of life have focused on renovations to our parks system.
And this year we will continue on our ambitious plan to update and revitalize our park infrastructure using dedicated funds from our open space, green acres program, and County Open Space Fund.
· We will convert the long forgotten Ash Street Park into a new state of the art neighborhood park with bright, clean and safe playground equipment and a U6/10 soccer field.
· With the help of the county and our own open space fund we will make aesthetic and ADA compliant walk way improvements in and around the Soldiers and Sailors Memorial at Carteret Park, our Phase II of improvement. This project will continue our commitment to never forget the individual names of the soldiers, sailors, airmen, and marines who appear on our memorial monument; and the ultimate sacrifice that they have made during the wars of our nation.
· We will complete the engineering and design work for the reconstruction of Sullivan Field by working with Middlesex County and our own Board of Education. This project will be out to bid by the end of this year and construction will begin early next year.
· Carteret has become known throughout the region for our active recreation programs, both public and private; and in the past we’ve added passive recreation areas such as the Waterfront Park, pier and memorial gardens. This year we will add to our historic preservation efforts by finalizing the rehabilitation of the former YMCA and Library Building on Carteret Ave and the 1863 School house in west Carteret. These buildings are a part of our boroughs history. By using these historic preservation grants we will open these buildings to the public for all to see and appreciate.
All total we will invest over $2 million this year alone in dedicated open space and grant funding for these much needed park improvements.
V Health & Wellness Center
Two years ago during my annual report, I unveiled our plans to construct a 36,000 sq. ft. state-of-the-art health and wellness facility here in Carteret. And as you can see from the structure taking form across the street, this is no longer simply a rendering in design. By the end of this year this impressive $14 million dollar structure will be completed, opening its doors for the first time, marking the end of 3 years of planning, grant seeking and fundraising.
This landmark occasion will also mark a beginning – the start of a new era for residents, during which an enormous range of health, fitness, and rehabilitation services will be available right here in Carteret, under a single roof, and at a reasonable cost. From its athletic facilities to its swimming pool, from the latest cardiovascular training equipment to its aerobic studios, All age groups will benefit from the Carteret Health and Wellness Center. In the next few months we will finalize our negotiations with an operator who will then begin their membership drive. As of today, we have raised $12 ½ million for this project through grants, donations and endowments without using one penny of residential tax payer money.
VI Closing
With all that our residents have accomplished these past few years, we know that there is still much, much more to do. Our goal is simple to leave this place better then we found it; to have compassion for our fellow residents; to improve the quality of life for our citizens, and create opportunities for the next generation. Many of the programs and improvements that we have been able to make are not just because of the hard work of this administration and our dedicated employees, although that is a large part of it. But also because of the county, state, and federal grants that we seek out and receive; and much of that funding is based on our socio-economic and demographic status as a community; the CENSUS count of What We Are, And Who We Are as a community.
This year more than ever, it is so vitally important to be counted; this census count of every living resident in the United States will determine how trillions of dollars are spent over the next decade. I urge my fellow residents to set aside just a few minutes that it will take to accurately answer the 2010 census this April; so that we can continue to improve and continue to build a better Carteret.
We know that these past few years have indeed challenged each of us in many different ways; for some it’s cutting costs and others it’s the basic need to survive these hard times. For those out of work, few will find solace in the fact that there is light at the end of the tunnel and there is a brighter America and better days ahead. Thank You.