RECOGNIZING THE FISCAL IMPACT OF THE CORONAVIRUS PANDEMIC ON THE TOWN OF BERKELY HEIGHTS, NEW JERSEY; Congressional Record Vol. 166, No. 82
(Extensions of Remarks - May 01, 2020)
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[Extensions of Remarks]
[Page E414]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
RECOGNIZING THE FISCAL IMPACT OF THE CORONAVIRUS PANDEMIC ON THE TOWN
OF BERKELY HEIGHTS, NEW JERSEY
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HON. TOM MALINOWSKI
of new jersey
in the house of representatives
Friday, May 1, 2020
Mr. MALINOWSKI. Madam Speaker, I rise today to recognize the
devastating impact the coronavirus pandemic continues to have on the
Town of Berkeley Heights, New Jersey and many local governments
throughout my district and the country. The corona virus has decimated
local revenues and increased costs and only Congress can provide a
lifeline to small towns through direct and flexible funding.
With a population of just under 13,500, the Township of Berkeley
Heights in Union County, New Jersey has been hard hit by the Covid-19
pandemic. We have witnessed 129 cases to date with 21 deaths and
residents testing positive every day, adding to our overall caseload.
Our local budget is set to be introduced before the state's extended
deadline of April 28th while our second tax collection period begins
May 1st. The timeframe does not allow our governing body to make an
informed decision of tax collection versus expenditures. As a result,
we significantly cut our spending to provide a zero dollar increase to
our residents since the outbreak of the pandemic. Layoffs of part-time
employees and cutting police radios, police cars, fire department gear
and sewer department equipment and has been sacrificed this year amidst
the financial crisis that our state, county and township faces as we
follow Governor Murphy's Stay-at-Home order.
As we remain at home to spare the lives of our family, friends and
neighbors, our local budget faces shortfalls from: the closure of our
municipal court and resulting halt in fees it generates; hotel
occupancy tax revenue--which generally produces $250,000 in revenue
directly to the municipality not shared with the Board of Education or
County; Uniform Fire Prevention inspection decline due to social
distancing rules; Little interest being earned on investment as a
result of the Federal Reserve lowering interest rates to 0 percent;
Anticipated lower-than-usual collection of current year taxes as a
result of economic hardships experienced by our residents such as
employment or loss of their small businesses; Cancellation of Spring
and likely Summer recreation programs, halting fees into our Recreation
Trust Fund, which pays for our recreation employees.
Further, we also anticipate an increase in tax appeals from
businesses for 2020. The Township already received notice of appeal
from its two biggest taxpayers--Connell Office park and Nokia/Bell
Labs--and anticipates that many small businesses will follow.
Additionally, as a result of our Judgment of Repose, the Township is
obligated to move forward with 6 redevelopment projects that have PILOT
agreements attached to pay for a $32,000,000 municipal complex to house
our police, senior, library, recreation and administration space. The
facilities will be essential for our residents as we move through this
pandemic into our new ``normal.'' Delays in redevelopment construction
due to supply chain disruptions related to Covid-19 will likely impact
future construction fees, which means anticipated revenue to the
Township from these projects will not be realized sooner, when it is so
desperately needed. Finally, we anticipate the State of New Jersey and
County of Union will also face great fiscal challenges and therefore,
the Township expects a decrease in grant money available for
infrastructure repair such as roads and our sewer infrastructure, which
has not been upgraded since constructed.
Additionally, New Jersey municipalities have a legal obligation to
pay the Board of Education and the county, even if our portion of taxes
cannot be collected. This places a tremendous burden on small towns.
It is crucial that smaller municipalities receive CARES 2 funds to
help stabilize our local government and economies. I implore the United
States House and Senate to pass legislation that will help small-town
America.
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