Revenue, Surplus Decreases Lead to Increased Oradell Taxes

As surplus and revenues continue to decline in Oradell along with construction fees, the borough will face an even tougher budget year in 2013. But for now, the Mayor and Council unanimously approved the for the remainder of 2012 on Wednesday night.

The $13.5 million budget calls for a $10,592,710 tax levy to be raised while facing an . Approximately $456,217 is being set aside in a reserve for uncollected taxes; Oradell will also hold a tax sale for the 15 properties that have not paid.

"Construction fees are down and we've had a large increase in delinquent taxes due to the continued sour economy," Councilman Garrie Murphy said. "There was also an increase to the BCUA due to an increase in usage costs, most likely from flooding."

According to the public notice for the tax sale, Oradell is facing an estimated $489,865 in delinquent taxes from 2011 and 2012. Last year, the borough received $303,000 in delinquent taxes, approximately $4,000 shy of what was owed.

"Oradell had almost $2 million in surplus in 2005 and by end of year we'll have $371,000 remaining," Murphy said. "Surplus was used to mitigate tax increases from 2007 to 2010 and going forward that can no longer be done. Oradell must embrace revenue via intelligent development or face the likelihood of dimished or 'a la carte' municipal services."

Some examples Murphy provided of intelligent development are looking into replacing the current one-story business strip from Ridgewood to Lake Avenues with two-story mixed use buildings for retail and residential. Or if the owner of the lot came up with something that would be a benefit to the community and developer.

Overexpenditures from the 2011 budget along with costs associated with the October snowstorm are also driving the taxpayer contribution up. A homeowner with the average assessment of $531,722 will see an annual increase of $167.27 or $13.94 per month.

Have a question or news tip? Contact editor Eamon Harbord at Eamon.Harbord@patch.com, or find us on Facebook and Twitter. For news straight to your inbox, sign up for our daily newsletter.