Council tables decision on 5-year abatement ordinance
Member of the public questions language of exemptions
The Asbury Park City Council held off on a vote to renew a city ordinance during Wednesday’s meeting after concerns brought to light during a public hearing on the matter swayed their opinion.
The 5-year exemption ordinance was first voted into law by past city council in 2003 and renewed under the same conditions in 2008. It allows property owners to apply for tax abatements for improvements made to existing structures and new construction throughout the city. The 2008 renewal expired Dec. 31, 2013.
In January, members of city council split their votes to reintroduce the ordinance without any amendments or changes. They voted 5-0 to table the measure.
For the period of the abatement, the tax rate is inflated due to the lower ratable base. The end goal of the program is to increase the ratable base over time, but the city’s taxpayers bear the burden of the abatement for the five year time period.
Three members of the public voiced opposition to the measure.
Resident Werner Baumgartner noted several types of properties had been omitted from the ordinance.
“Duplexes, multi-dwellings and apartments are specifically excluded,” he said. All of the properties offer a “significant tax base” and should be included in the final ordinance if it is going to be renewed, according to Baumgartner.
State statute allows individual municipalities who qualify for the program the ability to choose their own exemptions.
The state statute only references single family dwellings for residential properties, City Attorney Frederick Raffetto said. It will be up to the city’s redevelopment attorney, Glen Scotland, to review the ordinance in comparison to the state statute and provide insight as to why those types of units are not included, said Raffetto.
Resident Rita Marano questioned whether any members of the council had any hard evidence of whether the abatement ordinance proved successful during the ten years it had been in effect. As she sees it, the tax rate has only increased.
“You had ten years,” she said. “Tell me what’s happened in ten years. We’re paying more and more.”
Councilman John Moor said taxpayers have paid between $34 and $92 a year since 2006 per $100,000 of assessed value on their property. His data only went back as far as 2006 and the current rate is at $34 per $100,000 of assessed value for 2013, he said.
“I have a house on the west side of Asbury Park and I’m paying more taxes than some people I know in Spring Lake,” said resident Daniel Harris.
Councilman Loffredo moved to table the ordinance for further review in light of Baumgartner’s argument that the language of what specifically constitutes a residential property should be looked at.
“I was ready to vote it down but if you want to table, it I’ll table it,” said Councilman John Moor, who also voted no on the ordinance’s introduction.
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