PARSIPPANY — The Parsippany-Troy Hills Township Council tabled Ordinance 2021:09 “Special Emergency Appropriation in the Amount of $5,000,000” at the meeting on Tuesday, May 18.

Statement from Council President Michael dePierro:

The Mayor wants the Township Council to approve a budget that is not statutorily correct, including a $5 million loan, plus interest that must be paid off within five years; a Fund Balance of $1 million that may not be used; overestimating revenue and underestimating expenses. He blames the previous administration for not leaving him enough surplus.

Council President Michael dePierro said if the township’s revenue shortfall is not resolved, residents may face a 14.6% municipal tax increase in 2021.

During a Mayors first year in office, he can blame the previous administration for almost anything and get away with it. During the second year, not so much. By the third year, the Mayor owns the budget and any poor fiscal practices are completely on him. If the Mayor has not started developing a Fund Balance to protect the Township in the last three years, that omission falls on him.

The Township Auditors have identified a number of serious errors in the budget and Cannot Certify the Budget that was presented to the Township Council. The Mayor has the responsibility of presenting to the Township Council a statutorily correct and balanced budget. The only good news is the “American Rescue Plan” allocation of $2,850,000 which helps to make up some of the deficit caused by the Pandemic. That sum will also be available in our budget next year.

So where does that leave us? If the Administration submits to the Township Council a statutorily correct budget, the budget would show a Revenue Shortfall of $6,147,176.37. This would result in a 14.6% tax increase in 2021. As a starting point, however, we could then enlist the help of Tina Zapitchi from the Department of Community Affairs (DCA) and Valerie Dolan, our Township Auditor, to exhaust all other possibilities to reduce the shortfall and reduce the tax increase.

Statement from Councilmember Janice McCarthy:

Councilmember Janice McCarthy issued the following statement to the Township Council regarding the Soriano Administration’s proposed use of a five million-plus dollar bond in order to balance the budget.

At the request of Finance Committee Frederick C. Carr and Chief Financial Officer Juan Uribe agreed to work with the township auditors to clarify outstanding issues with the State Division of Local Government Services on whether the town will be allowed to borrow $5M. So, the borrowing decision is pending with the State. The resolution on the agenda is tabled again by the council pending clarification.

If the $5M or a lower amount is allowed by the State Division of Local Government Service it cannot be included as revenue in the 2021 budget. Whatever amount the State allows, it is only for COVID-related expenses and not any underlying issues inherent to the budget.

Based on whether Parsippany will be able to borrow the $5M will determine how the administration goes forward with the 2021 Budget and what steps or actions will be necessary to balance the budget.

Recent remarks criticizing the council for trying to fully understand how borrowing $5M fits into the 2021 budget were unnecessary. This budget is very complicated because of structural deficit issues made worse by the pandemic. We would like this to be a collective effort.

Just to clarify any misunderstanding, as of today Parsippany does not have a 2021 budget. So, there is no budget for the council to approve. Any decisions on taxes, proposed capital projects, raising or reducing expenses which include staffing levels, pay increases, etc. are the responsibility of the Administration in preparing the budget prior to giving it to the council.

Once the auditor signs off on the budget and the town council is given a balanced, legal budget the council can review and offer recommendations.

So again, just to clear up any misunderstanding the town council does not have a budget from the Administration to approve.

Also, there were comments at the last council meeting claiming the township auditor made a mistake in preparing the annual financial statement which it was claimed caused the town to reduce the proposed revenue that was being anticipated.

However, the revision made by our auditors and the financial statement the auditor prepared was correct. So, we would like to apologize to them for any misunderstanding.

Finally, the fact is that while other municipalities, just as Parsippany did, suffered revenue shortfalls related to the pandemic and need relief, Parsippany’s fiscal mismanagement in the last 12 years has created an unsustainable structural deficit that everyone, all elected officials past and present, are responsible for. The deficit has only been made worse by the pandemic. These 2 events should not be conflated. Resolving an estimated $9M structural deficit if it begins in 2021 will take several years to correct.

But more immediately the Administration has to prepare a 2021 budget and make decisions on addressing the current year deficits.

The next Township Council meeting will be held on Tuesday, June 1 at 7:00 p.m. at the Parsippany Police Athletic Building, 33 Baldwin Road.

PARSIPPANY — The Parsippany-Troy Hills Township Council authorized Parsippany’s Tax Collector to prepare and issue estimated tax bills for the third quarter installment of 2021 taxes.  The estimated calendar year tax levy for 2021 is calculated at $230,843,845.73. This amount is less than 103% of the 2020 calendar year tax.

In accordance with New Jersey Statutes, the third installment of 2021 taxes shall not be subject to interest until the later of August 10 or the twenty-fifth calendar day after the date of the estimated tax bills were certified mailed.

The estimated tax bills shall contain a notice specifying the date on which interest may begin to accrue.

PARSIPPANY — Kiwanis Club of Greater Parsippany was among a number of North Jersey Kiwanis Clubs participating in distributing over 40,000 pounds to those in need on Saturday, May 15. Over 1,000 families with 1,426 children in eight towns received food containing fresh garden vegetables and other non-perishable items.

Joining in with Kiwanis Club of Greater Parsippany was Tri-Town Kiwanis Club, Kiwanis Club of Greater Roxbury, Kiwanis Club of South Orange/Maplewood, and Kiwanis Club of Bridgewater.

“The USDA estimates that in 2018, about 774,860 people, including 219,760 children, in New Jersey were food insecure. That means one in 11 individuals (8.7%) and one in nine children (11.3%) live in homes without consistent access to adequate food for everyone to live healthy, active lives,” said Frank Cahill, Lt. Governor Kiwanis Division 9.

“The economic damage wrought by mass layoffs and business closures is expected to persist long after vaccines become widely available and that means demand for food assistance will remain at the current high level for months or years to come,” said Laura Wohland, President Kiwanis Club of Greater Parsippany.

“These numbers have increased drastically with families struggling during the pandemic,” said Cain Pope, President of Kiwanis Club of Greater Roxbury.

Since the beginning of this service project in December, Kiwanis Clubs have distributed over 149,400 pounds of food, serving 3,755 families with a retail cost of over $375,000.  Kiwanis Club members either donated or raised funds to purchase the food to distribute to needy families during the pandemic.

Kiwanis is a global organization of volunteers dedicated to improving the world one child and one community at a time.

To find information on Kiwanis Club of Greater Parsippany click here.

To find out information on the next Kiwanis Food Distribution click here.

PARSIPPANY — The Township Council for the Township of Parsippany-Troy Hills will hold a Special Meeting on Tuesday, May 18, 2021, at 7:00 p.m, in the Parsippany Police Athletic League (PAL) Youth Center located at 33 Baldwin Road.

This meeting is an in-person meeting and will follow all the COVID-19 protocols. Formal action may or may not be taken, and any other action reasonably related thereto may also be taken.

Click here to download the agenda.

• 2021-08 Parsippany Stormwater Ordinance
• 2021-10 Prohibiting All Classes of Recreational Cannabis Licenses
• 2021-11 Parsippany Knoll League Fees
• 2021-09 Emergency Appropriation 5,000,000 COVID
• R2021-075 Adv Opportunities Resolution
• R2021-076 Change Order Number one
• R2021-077 Ambulance for Parsippany Volunteer Ambulance Squad
• R2021-078 Compressor for the Water Department
• R2021-079 Edwards Road Improvement Program
• R2021-080 Smith-Baldwin House Phase 3 Rehabilitation
• R2021-081 Estimated Tax Bill
• R2021-082 Parsippany LRIG Appliation-Sensory Playground
• R2021-083 Wielkotz Company LLC
• R2021-084 2021 Morris County – Open Space Aquisition
• R2021-085 Sustainable Jersey EDF Climate Corps Parsippany Resolution
• R2021-086 Morris County Cooperative Purchasing Co-Op
• R2021-087 NJDEP Urban Parks Application Resolution
• R2021-088 Opposing Forest Mgt Bills
• R2021-089 Police Dept Procedures
• R2021-090 2021 Parsippany Sustainable Jersey PSEG Resolution
• R2021-091 Soil Moving Permit-Morris Corporate Center LLC
• R2021-092 4 Norman Ave Group Home Community Options
• R2021-093 Person-to-Person Transfer Milagros Grill
• R2021-094 License Renewal Part III
• R2021-095 Mayor Authority to Sign Notices of Deed

PARSIPPANY —  On May 4, the Township Council expressed concern about the proposed special emergency note of $5 million that’s been requested to balance the budget. A special emergency note is a short-term public financing option, which is typically amortized for 1 year. This emergency note, however, will be amortized in 5 years. It’s a one-time exception, due to the COVID-19 pandemic that has impacted our Township and so many communities across the country.

Let me be very clear – we are still working our way through the worst health crisis this country has seen in over 100 years. Small businesses, non-profits, schools, banks, and nearly every aspect of the country’s economy have been devastated over the past year.

Revenues for municipalities across the country were ravaged by COVID-19, and our Township was not spared from this fallout. It’s not just Parsippany that is reeling from this.

However, a combination of poor fiscal practices from the previous administration led to an absence of revenue surpluses across all departments. Now, coupled with a global pandemic that shook the country’s financial institutions to their core, Parsippany is facing a budgetary storm that we must address and correct today.

As you may have heard, Parsippany stands to receive over $5.7 million in federal funding through the American Rescue Plan Act. This funding will go a long way toward bringing Parsippany back to a fiscally prudent standing, and we have the federal government to thank for this assistance. But this relief won’t be coming to the Township as quickly as we would hope. The most we can expect is half of that before the end of the year. We have bills to pay now. This is not just some abstract allocation of finances. Township operations may be at stake. The water we drink, the garbage that’s collected, the emergency services we rely on, all of them are vulnerable to cease operation if we cannot pay for them to operate.

This is why this emergency note is critical. We will have the money to pay this off, but like thousands of cities and towns have been forced to address, it’s going to take careful and precise financial prudence to work our way back to balance and fiscal responsibility.

It may be convenient for some to forget what our residents and Township have gone through over the past year and a half, in favor of scoring some political points. We have no time to waste playing political games, we must properly implement this funding to help assist our taxpayers now, and make our Township finances whole again. This starts with approving this special emergency note.

PARSIPPANY — A bipartisan group of council members expressed concern about the Soriano administration’s recent budget presentation which is centered on taking out a $5M loan in order to balance the budget. The council was unanimous in voicing their opinion that the administration has not provided sufficient information that would allow them to make an informed decision.

Council President Michael dePierro asserted that the budget presented by the administration is not legitimate and will cause a drastic tax increase in 2022. He reaffirmed his position in an email to Parsippany Focus, stating “The $5 million cannot be used as revenue, therefore the administration cannot use it to balance the budget. Until the administration submits a balanced budget to the Township Council, we do not even have a budget to consider.” In addition, the budget received by the council reflects a current fund balance of less than $1,000; $10 to $15M below operating guidelines.

Soriano indicated that he is unlikely to budge on his demand to include the $5M bond and attempted to shift responsibility for the crisis to the council noting in a comment to Parsippany Focus, “The Township Council can either accept the budget by voting yes on the loan and accepting the budget as is, or they could come up with their own plan that could result in a layoff of essential employees and higher taxes for homeowners.”

Councilmember Janice McCarthy said “The five-million-dollar bond is an integral part of the budget. If it is necessary, I will approve it, but so far that has not been demonstrated. Before committing to borrow $5M, I feel it is the council’s obligation to taxpayers to fully understand the budget presented by the administration in early April. Currently, we are in process of speaking with township auditors and seeking clarification on technical issues that were raised. While I would like to approve the Mayor’s budget, if what I have heard so far is confirmed, it appears we could be at a stalemate.”

Councilmember Emily Peterson stated, “The council and finance committee were not given an opportunity to be involved in the budget process in order for a consensus to be reached before the council was asked to vote on the $5M bond at the April 6th council meeting”, adding that the administration was not transparent during the process. “This council has worked together over the years to build trust and a sense of common purpose for the good of Parsippany. This bond is no different. We are currently in the process of getting the information required to make an informed and pragmatic decision and once that process is complete, we can move forward with a clear understanding of the administration’s ask.”

Another issue uncovered during the meeting was the revelation that the Township has exhausted all banked tax increase cap. CFO Juan Uribe acknowledged that while more than a 2% tax increase is likely required to cover the deficit, the town is limited to a 2% increase without making a request for an exception adding, “our backs are against the wall.”

Proposed tax increases in excess of 3% over the past few years have become normality for Parsippany residents with the Soriano administration placing the blame squarely with the prior Republican administration for years of financial mismanagement. While expenditures have steadily increased revenues have not kept pace and budgetary gimmicks that began under the Barberio administration like depleting utility surpluses have been increasingly relied on to cover current fund operating deficits. This has resulted in major increases this year in utility rates for Parsippany residents, with additional increases expected over the next few years. McCarthy pointed out that overutilization of the utility surplus over the past 12 years has created an ongoing operating deficit (estimated at $2M) that remains unresolved.

“My administration has worked very hard on the 2021 budget this was made difficult because of the unprecedented crisis that we are about to emerge from. Understanding that so many residents are dealing with their own financial hurdles we labored to introduce to the council a fair and fiscally responsible budget with a 1.5% increase. We have done everything in our power to keep your taxes low while maintaining the level of services our residents have come to expect. Because of the 2020 revenue shortfalls that municipalities from all over New Jersey are dealing with, the State will allow us to borrow $5 million to make up that shortfall,” said Mayor Soriano.

Business Administrator Frederick C. Carr stated “No comment on draft budget documents.”

Soriano is running unopposed for re-election in this year’s Democratic primary and will face either former Republican Councilmember Lou Valori or former Republican Mayor James Barberio in November. None of the current members of the Parsippany township council are up for reelection this year with Councilmembers Janice McCarthy and Emily Peterson declining to run.

The Township Council will meet on Tuesday, May 18. Due to recently relaxed occupancy rules, the council announced that it would hold meetings at the Parsippany PAL Youth Center, 33 Baldwin Road.  The meeting starts at 7:00 p.m.