Montclair Municipal Taxes Expected to Rise 2.4% in 2013

Montclair taxes will increase in 2013. 

The municipal tax levy will rise 2.4 percent this year, or $1.25 million, according to a preliminary budget presented by Township Manager Marc Dashield at Tuesday's council meeting.

This means the average home assessed at approximately $505,600 can expect to pay about $5,315 in municipal taxes, which is an increase of $94 from last year. 

The 2013 overall proposed budget is $77.8 million, which is up $2.25 million or 3 percent from 2012. 

Dashield said Montclair’s fiscal health is moving in the “right direction” as it reduces debt and increases its surplus. 

This council is aggressively tackling township debt, which has been reduced from $221 million in 2011 to an expected $205 million by the end of 2013. 

Debt is forecast to drop further as the township has put forth a plan to nix about $68 million from it in the next 10 years, which has resulted in a healthy bond rating of AA- from Standard & Poor’s.  

“We are making tremendous strides,” said Dashield. “We are definitely moving in the right direction.” 

The surplus in the 2013 budget is predicted to be more than  $5.2 million, up 5.7 percent from 2012. Dashield said surplus continues to grow after reaching a low of about $1 million in 2011. 

“We never want to be in that position again,” said Dashield, “that is why were are making the decisions we are now.” 

Cost Drivers

Driving costs up in the proposed 2013 budget will be police and fire salaries and paying for the cleanup of Hurricane Sandy. 

Police department salaries will climb about $775,000, or about 6.3 percent, and fire department wages will rise about $326,000, or 3.8 percent, from the previous year. The combined salaries of the two departments make up about 30 percent of the overall township expenditures. 

Cleanup costs for Hurricane Sandy also swelled the emergency appropriations budget by about $613,000. The township estimated the super storm cost Montclair more than $1 million.  

“That is a major part of the increase in our budget,” said Dashield about the cleanup associated with Sandy. 

More information about the breakdown of the introductory 2013 budget can be found in the photo gallery.