Potential Tax Increase with Introduction of Budget

The municipal portion of next year's tax bill could increase by 3.2 percent, or $407,041, which would potentially raise taxes by approximately $120 for the average home assessed at $410,000, borough auditor Gary Higgins said at Monday's mayor and council work session. 

The factors driving this increase are:

• Loss of approximately $16 million of ratables between 2011-2012 due to tax appeals, foreclosures, bankruptcies and flood reductions.
• Re-assessment--cost approximately $200,000.
• Hurricane Irene emergency expenses and payment of a judgment.
• Debt service for sanitary sewer repairs financed through NJ Environmental Infrastructure (NJEIT)

Higgins noted that even with the increase the borough is still within the mandated 2 percent tax levy cap. 

Earlier in the year Mayor Ann Subrizi formed a finance committee responsible for fact finding and working the preliminary budget numbers that would in turn be introduced to the rest of the council. The committee consists of Subrizi and councilmen Diego Robalino and Austin Ashley. 

Ashley voted "no" to the introduction of the budget citing concerns about increases and seeking more reductions to the preliminary budget. One of his concerns included the cost to the borough of the new employee health plan and asked that another, less expensive, health plan be considered. 

On Subrizi's recommendation, the borough risk manager, Art Caughlan, will assess the plan Ashley suggested, review any potential cost savings and report his findings to the mayor and council.

Councilwomen Randi Duffie and Hedy Grant voted "yes" to introduction, so as not to be in violation of the law, but stated that they also sought clarification on some of the line items. The deadline for introducing the 2012 municipal budget is March 9 or the next regularly scheduled governing body meeting where formal action may be taken.

Subrizi suggested holding a series of special budget meetings to discuss expenses, review line items and make any changes before the public introduction of the budget on April 23. 

These budget meetings, which are open to the public, will be held on March 19, April 2 and April 16 at 6:30pm in the conference room on the second floor of borough hall.