Budget Down, Taxes Up in West Caldwell

West Caldwell municipal taxes will increase this year while the overall budget dipped by nearly $400,000 from 2012. 

“We don’t like any tax increase ... but this year it’s just a fact of life,” Councilman Richard Otterbein said. 

The West Caldwell Council approved an $18,372,814 budget for 2013 at its Tuesday meeting that includes a tax increase of about 2 percent. The increase comes to about $47 for the average assessed home of $432,700 in the township, bringing the average municipal yearly tax to $2,371. 

While taxpayers will pay a little more this year, the overall budget dropped by nearly $397,000 from the previous year. The main driver for the tax increase was a steep decline in revenues, such as township issued building licenses and permits, said Chief Financial Officer Nikole Monroig. 

To make up for the drop in revenues and balance the budget, West Caldwell departments all reduced their own budgets, said Monroig. “Every department did their part,” she added. 

Otterbein said the "pressures on the budget are enroumous. “I believe this is an austere budget. It’s a tough year and we did the best we can.”

Among other cost drivers, Monroig said Superstorm Sandy “definitely had an impact on the budget.” The township spent about $185,000 on the storm that felled innumerable trees and wires throughout the township, kept police on constant patrol and left many residents without power for days.  

Monroig said the township is still waiting for a reimbursement for storm costs from the Federal Emergency Management Agency, which typically pays 75 percent of storm-related costs.