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August 11, 2010

Camden budget calls for tax hike and layoffs

By DEBORAH HIRSCH • Courier-Post Staff • August 11, 2010

CAMDEN — Mayor Dana Redd Tuesday introduced a $138.8 million budget for fiscal year 2011 that raises taxes for the first time since 2002, cuts library funding by more than half and likely will require layoffs.

It was not the budget, however, but a resolution to negotiate an agreement for the county to take over the city library system that prompted more than an hour of public outcry from dozens of angry residents.

The city's library system was the first to feel the impact of this year's funding woes, drawing national attention when board members announced they would no longer be able to operate past Dec. 31 given such a dramatic drop in annual funding.

Camden's strained budget will bear more bad news as Redd cuts 24 percent from all departments in order to close a $28 million projected shortfall. She said city employees will likely face layoffs and demotions, though she has yet to reveal any specifics.

That's left city workers in nervous wait. Nonuniformed employees are already in the midst of 26 days of unpaid leave. Earlier this year, council also ended payments for employees who opt out of health insurance coverage and required, as mandated by state law, contributions to health care costs.

"This fiscal crisis is real," Redd said. "This is not a great day, but we're going to get through it."
The budget includes $46.6 million in state aid and assumes that the state will provide an additional $54 million in transitional aid. In order to qualify for that aid, Redd said the city had to show that it made every effort to cut costs and generate revenues.

In Camden's case, that includes a tax increase -- something that had been prohibited since the city was put under state control in 2002. That legislation was revised in January, releasing the city from most oversight two years earlier than planned. Under the current "economic recovery" phase of the act, the mayor may raise taxes up to 3 percent, regardless of the state's imposed 2 percent cap.

Even a 3 percent tax increase, however, will hardly make a dent in the city's funding shortage. Local taxes last year generated about $20.6 million. The increase would generate an additional $631,000, according to budget documents. The annual cost to an average homeowner would be about $56, said Business Administrator Christine Tucker.

Residents could face another tax from the county if the library becomes part of its system. Normally, the public would have to vote to join the county system, since the public voted to create the original city system. But Redd said the revised state takeover act allows city council to approve such a change, which she proposed as a walk-on resolution Tuesday. Council members, with the abstention of President Frank Moran, unanimously approved the measure.
Tax increase aside, library supporters lambasted council for even considering giving up control over the library system and handed over a petition with about 1,000 signatures.

Robin Guenther, the children's librarian at the downtown branch, said joining the county seems like a good way to ensure residents have access to libraries, but that doesn't mean anything to families who have no way to get to branches outside of the city. Even if the county continues to operate Centerville, Camden's newest library, Guenther noted it would take more than an hour on two buses for those traveling across town.

"No parent is going to take their child on an hour-and-a-half trip to get a library book," she said.
Several library staff members echoed Guenther's fears that the county would shut down both the Fairview and downtown branches.

Residents "need their own building," said Irma Martinez, a senior library assistant at the Centerville branch.

"Everybody can have their part of Camden except for the people that live in Camden," complained East Camden resident Nancy Smalls.
Attempting to calm the crowd, Moran pointed out that council was merely authorizing negotiations and would have to give formal approval again once a specific plan was presented.
"Not one council member wants these libraries closed but we can't afford to run the libraries as we have in the past," Moran said.

Though Redd did not detail how the city would cut salary and wages, she pointed out that the police department budget would drop by $14 million and fire by $7.5 million. An additional $4 million would come from operational expenses. A freeze on nonessential spending will remain in place.

Because the city depends on additional state aid to close budget gaps, it typically does not adopt its budget until nearing the end of the fiscal year. Council members adopted a $178.1 million fiscal year 2010 budget in May. The city later received grants that raised appropriations to $185.1 million. Redd said the current budget could likewise increase if grants come in.

Posted by tumulty at August 11, 2010 11:58 AM

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