Mayor: Zero Percent Tax Increase Within Reach

Ridgewood residents very well could see no increase in their municipal taxes, but the strategy used to reach that figure has aroused concern from one official.

By drawing $3 million of its surplus, Ridgewood can deliver a 0 percent tax increase to residents while avoiding layoffs, increasing the library budget to 2009 levels, and maintaing extended hours at Graydon Pool, Village Manager Ken Gabbert said.

The manager previously said a zero percent tax increase would force layoffs.

The $3 million withdrawl would leave only $500,000 in Ridgewood's municipal fund balance. It could be disastrous for residents, Councilman Tom Riche argued.

Large-scale storms can be budgeted for through emergency appropriations, but "bad budgeting" could leave residents in a pickle, according to Riche.

"If police overtime goes up by $200,000 [to] $300,000, we have no way to find that money," Riche said. "I understand a zero percent tax increase as a goal but I think this puts residents at risk. I wouldn't want to do that with my personal finances, and I think it's the wrong way to go."

If the water utility is operates in the red it's the village that needs to find the money, Riche later added.

In 2010, the end of year surplus was $200,000. The 2011 budget ended with a $1.3 million balance. Nothing was left in the tank by the end of 2012, according to village documents. Those figures do not include "restricted funds," which were $0 in 2010, $500,000 in 2011, $1.2 million in 2012, and are proposed to be $800,000 in 2013.

Mayor Paul Aronsohn, who set the zero percent goal months ago, said Riche had no problem passing a budget last year that had no fund balance.

"Last year you were OK with zero surplus and now you're not?" he shot back.

He also said the village expects $500,000-plus in FEMA funds to return, which will be returned to the surplus.

Deputy Mayor Albert Pucciarelli was enthused a zero percent tax increase appears within reach, telling the audience it would be "a remarkable achievement."

But he also cautioned that larger systemic problems remain. Union contracts and various compounding labor costs mean "sacrifices have to be made elsewhere," he said.

"It's not something we can count on year after year unless there are deep-seated changes structurally," he said, adding that a yet-to-be created financial oversight board would help identify potential changes. 

Despite the council's interest in a zero percent tax increase, taxes overall are unlikely to flatten. The proposed school budget would see the average resident pay an additional $203. Should the budget fail to be approved by voters on April 16, the council would be responsible to set a new tax levy.