State and county delays crunch city finances

State and county delays crunch city finances
Tax bills on hold pending review of tax rate
BY KENNY WALTER Staff Writer

LONG BRANCH — Layoffs and furloughs at the state and county level have delayed the delivery of quarterly tax bills in Long Branch, according to the city's finance chief.

Ronald Mehlhorn, Long Branch finance director, said last week that the city might have a cash flow problem until the budget is certified and the city is able to mail out tax bills.

"Everything is so far behind," Mehlhorn said in an interview July 15. "We don't have certification on our tax rate."

Mehlhorn said he received certification of the budget from the state, but that the tax rate must be certified by the county, which had not yet happened as of last week.

"We have the budget [certification] from the state; we are just waiting for the county to certify the tax rate," he said.

Mehlhorn said that with jobs disappearing at the state and local level, it has been a struggle at times just to get information.

"Everyone is just so inundated that we can't even get through to them," Mehlhorn said. "It's a sign of the times. They have fewer bodies, but the work increases."

According to Mehlhorn, quarterly tax bills are due on Aug. 1 most years, but because of the delay, the quarterly tax bills have not been sent out. Even when the budget is finally certified, it will be a few weeks until the money is collected.

"We have to give people 25 days' notice before we can bill them," he said.

Mehlhorn said at the July 14 City Council meeting that it costs between $1 million and $2 million a week to run the city.

He said the city might have to borrow around $10 million to stay afloat. He also estimated that interest on the funds borrowed could be between $200,000 and $400,000.

Mehlhorn also said at the council meeting that the city won't be refunded that money from the state, and that the funds may need to be borrowed before the Aug. 7 payroll date.

The funds would be borrowed in the form of tax anticipation notes, which are usually borrowed from large brokerage firms and paid off when taxes are collected.

He said the limit on how much the city can borrow is 30 percent of last year's tax levy.

For Mehlhorn, this is a new experience.

"This is the first time it's ever happened this late," he said.

Once the tax rate is certified, it may be a long couple of days for employees in Long Branch.

"When we get the certification, we will work all night to get the tax bills out," he said. "I'll have everyone in the place stuffing envelopes."

Contact Kenny Walter at

kwalter@gmnews.com.


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