Will we see a tax increase even if we do complete the sale of the water distribution system outside of Trenton?

Yes.  According to Acting Business Adminstrator Dennis Gonzalez, the city is going to be in a similar budget situation in Fiscal Year 2001 which begins July 1, 2010. Without the water sale, we face a serious tax rate increase before June 30 of this year.  With the water sale, we can skate by for another year and three months, but will be back in the same position.  The difference will be lower revenues from the water utility and nothing left to sell off to fill the budget gap.

If we stop the sale, we pay that increase now and keep a revenue generating asset in perpetuity.  If the sale goes through, we have a smaller tax increase now and a larger one in just over one year.