Municipal Budget May Mean $45 Increase for Average Taxpayer

Hasbrouck Heights taxpayers may see a slight increase in the municipal portion of their tax bill this year as per preliminary 2013 budget figures.

The borough's finance committee is in the process of finalizing the numbers in preparation of the introduction set for the Tuesday, March 26 mayor and council meeting, according to Mike Kronyak, the borough's chief financial officer and borough administrator.

Kronyak gave the governing body and the public an overview on the preliminary budget Tuesday night reporting that both the spending budget and amount to be collected by taxpayers are "comfortably under" the 2 percent mandated cap.

The finance commitee has about two more meetings scheduled prior to the March 26 introduction but based on the anticipated amount to be raised by local taxes, Kronyak reports that the increase is at about 1.3 points, roughly $45 to the average homeowner with home valued at around $350,000.

For the third year in a row, state aid remains flat in the amount of $1,083,148. Kronyak says there were some adjustments made in that the energy tax went up by $21,000 however the consolidated municipal tax went down by the same amount resulting in no loss of state funding.

Kronyak pointed to revenues which are performing better, up by 105 percent, as one of the factors that have benefited this year's budget. Some revenues which had struggled previously are doing better such as the hotel tax and court and construction fees.

Also the borough is putting $1 million from surplus towards expenses to lessen the impact on taxpayers, he reported.

Kronyak pointed that although employees are paying more towards their insurance, the premium went up 9 percent, however the borough is allowed a cap adjustment for insurance increases. He recommended that although the spending cap falls at about 1.6 percent, the borough should still establish a cap bank which would allow for up to 3.5 percent, just for the purpose of having it on reserve.

The introduction of the budget will be done at the March 26 meeting. Public hearing on the budget will be held Tuesday, April 23.