New Brunswick has not been spared from the pain of a global economic downturn, but the city is using revitalization and redevelopment efforts to strategically position itself to weather the economic storm, said Mayor Jim Cahill yesterday in the annual State of the City address.
“In 2009, we are face to face with an economic crisis that will require courage, cooperation, sacrifice and leadership to overcome,” Cahill said in City Council chambers. “There is much fear, uncertainty and doubt throughout our nation and the world, but the state of our city is strong.”
Since the July 1992 recession, job creation has been a cornerstone of the city’s redevelopment strategy.
The city generated 4,800 additional jobs since 1992, and despite the downturn, its 7.6 unemployment rate is the lowest for urban centers in New Jersey, Cahill said.
But the city’s revenues are down $1.4 million and the city is faced with a state mandated $5.4 million pension cost increase, he said.
“We are fully funding our entire pension obligation this year,” Cahill said. “It is our obligation to pay now.”
On top of 35 positions being eliminated last year, 11 positions — eight fulltime and three part-time — will be eliminated from within the city’s workforce in order to reduce salary and wages by $500,000 and management salaries will remain flat for 2009, Cahill said.
These measures, along with reductions in operating and expense costs, will result in a $72.4 million proposed budget for 2009 — a $200,000 reduction from last year, he said.
The budget projects a $137 municipal tax increase for the average homeowner; which will maintain all existing programs and services, and existing personnel will pick up the responsibilities of those that left, Cahill said.
“I’m glad to hear about more information being disposed so that I can assess, evaluate and review if there’s any other cuts and areas we can improve,” New Brunswick resident Cedric Goodman said. “It’s always the low-paying jobs that are the first ones to go, so I want to see the budget and go over it and make conclusions based on that.”
The city is adding to its workforce in the areas of police, firefighters and sanitation workers.
Two police officers have been hired this year and the city has applied for stimulus funds to hire up to 13 additional officers, Cahill said.
Programs such as DARE, Crime watch and bike patrols have helped to cut city crime in half, he said. But in an economic downturn crime prevention is a crucial investment.
“[The City] cannot afford to be pennywise and pound-foolish when it comes to the safety of our residents,” Cahill said.
The 2009 budget also calls for adding 10 new firefighters and two additional sanitation workers, he said.
“[It was] a very upbeat speech in very tough economic times,” said Council President Elizabeth Garlatti. “[It reassured] the citizens of New Brunswick of the level of service he is going to be able to preserve, especially in the areas of public safety and city life.”
Cahill said $8.17 million in revenue from redevelopment projects— a $911,000 increase from 2008 — helped has helped the city’s financial situation.
“Revenues from current redevelopment projects fund alone fund over 11 percent of the city’s total budget,” he said.
The $160 million Easton Avenue Gateway building, a joint effort with New Brunswick Development Corporation, the University and the city’s parking authority, will begin construction later in the spring, Cahill said.
“[It] literally creates another bridge between the city and Rutgers by establishing a direct pedestrian access from College Avenue to the train station platform,” he said.
It will house new retail including the University’s Barnes and Noble Super Bookstore, offices, housing and parking to the transit village area.
Cahill praised the New Brunswick public schools for being designated as a high performing school district, following a review by the state’s department of education.
“We’re thrilled that staff administration and students have all worked hard to reach this success; this is something that lots of districts take for granted — we in New Brunswick don’t take for it for granted — and we want to raise the bar even higher,” New Brunswick Public Schools Superintendent Richard L. Kaplan said.
Construction on
Along with public safety, there will be investments in infrastructure, home rehabilitation and pedestrian safety, Cahill said.
Among the park projects will be the opening of New Brunswick Landing, a floating dock set on the Raritan River, 27 new solar-powered LED lights — which will provide $11,000 annual savings in energy — in Feaster and Pittman parks and a reconstruction of Pittman Park.
Despite budget, economic challenges, city stands tall
Published: Thursday, April 16, 2009
Updated: Thursday, April 16, 2009
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