Municipal Budget Adopted, Tax Increase Lower Than Projected

With the adoption of the 2013 municipal budget by the Mayor and Council Monday, New Milford residents will see a municipal tax increase lower than what was anticipated during the budget introduction in March. The final budget numbers show a tax increase to the municipal portion of the budget at $47 per year for a house assessed at $321,339, and not $63 as the auditor originally projected.

The Mayor and Council also adopted an ordinance authorizing them to exceed the municipal budget appropriations limits and to establish a 'cap' bank.

In order to meet the costs of the special and unanticipated capital projects included in the 2013 capital portion of the budget, the borough will need to exceed the 2 percent cap in order to fund the projects.

Local governments can circumvent the 2.5 percent cap on municipal budget increases if an ordinance is adopted establishing a 'cap' bank. The passage of the ordinance permits the governing body, in certain situations, to increase its budget in an amount not to exceed 3.5 percent of the preceding year’s appropriations level.

The law establishes that the 'cap' can be exceeded without having to go to the public for a vote if a town needs to meet certain capital expenditures, including debt service, or if there is an increase in pension contributions or health care costs.

Included in capital expenditures, are the following special projects totaling $4,002,500:

• Hirschfeld Brook Flood Mitigation: $1.4 million
• NMFD Co. 1 Firehouse Renovation: $736,000
• NMFD Co. 2 Firehouse Renovation: $1,666,500
• NMPD Headquarters Design: $200,000

According to Councilman Michael Putrino, a member of the budget committee, much time and commitment went into addressing many of the borough's current and long-term needs while weighing the financial burden on the taxpayers.

"I believe that the budget is fiscally responsible," Putrino said. "It maintains essential services, proactively attacks our public safety deficiencies, continues efforts to improve the infrastructure and will finally make the flood mitigation project along Hirschfeld Brook a reality."

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