Services Remain Intact with Introduced Glen Rock Budget

The borough of Glen Rock on Wednesday night passed the introduction to the budget for 2012, one that , according to mayor John van Keuren.

The municipal operating budget – $17,027,328 million, requires that $12.45 million in local taxes be raised. It amounts to a 1.7 percent rise in taxes, between $40 and $50 for the average homeowner, van Keuren said.

"The state imposed the 2 percent cap and our municipality has to limit our budget, but we've maintained this under the cap calculation since this was imposed by the state," said Councilman Art Pazan, a member of the Finance Committee. 

According to Pazan, an upswing in revenue is helping keep the tax rate down and maintain the same level of services in Glen Rock.

Increases in revenue from cell towers, swimming pool badges, recycling program sales, a change in picking up corrugated waste, parking meters, municipal court, utility franchise fees, senior citizen housing payments in lieu of taxes (PILOTs), license fees and permits, and uniform construction fees exceeded $145,000 over 2011 projections.

There are, however, increases in salary and wages, totalling $250,000. Greater communications costs, increases in group insurance, medical exams will also increase, though reductions in pension obligations to police and fire, as well as retired workers realize about $100,000.

Costs excluded from the 2 percent tax cap levy are projected to fall in the 2012 budget though debt service obligations will increase, documents show.

The borough has slated $1.2 million in capital bonding, $880,000 of which is debt service. Plans include repaving roads, $550,000 to renovate the recycling center, a new front loader, a renovation to graffiti-scarred Wilde Park, among others.

No layoffs or increases in staff are projected in the upcoming budget, according to Borough Administrator Lenora Benjamin. However, one full-time worker in the tax office will see a reduction in hours, she said.

Noting a common suggestion that Glen Rock try to find an additional $50 million in commercial ratables to knock the taxes down by as much as $300 for the average resident, van Keuren said it just isn't likely to occur.

The highest taxed commercial building in the borough is assessed at $15 million and a total of six properties equate to $50 million, the mayor stated.

"The idea that increasing the value of commercial properties as a way to reduce the tax rate should be weighed in terms of its likelihood and all the requirements that go into accomplishing that," van Keuren said.

In a startling statement, the mayor also added that despite the school while reducing debt service, documents show they'll rise 1.65 percent.

However, according to Glen Rock Public Schools Business Administrator Michael Rinderknecht, because the school district and borough operate on different calendar years (the school district operates according to a school year – July 1 through June 30th, and the borough raises its tax levies on a calendar year basis), the percentage cited by the mayor is merely to cover the tail end of the 2011-2012 school budget, which impacts the 2012 tax bills.

In a telephone conversation Thursday, Rinderknecht reasserted that the general fund tax levy on the school side for the proposed 2012-2013 budget remains flat, representing no increase from the current 2011-2012 general fund tax levy. The proposed debt service in the upcoming budget is a decrease from 2011-2012's budget.

Municipal officials said plans are underway to put the full, detailed municipal budget online for residents.

[Editor's note: This report was last updated at 2:25 p.m. Thursday to include comments from GRPS Business Administrator Michael Rinderknecht, clarifying a figure cited by municipal officials on a rise of school taxes.]