Residents Question $70.6M Teaneck Budget

The Township Council’s introduced $70.6 million budget has drawn criticism from some residents over the town’s handling of $2.2 million in tax rebates and prompted a push for spending cuts.

The proposed budget aims to collect $54.9 million from taxes, a 6.6 percent jump in the township tax levy.

Teaneck’s spending plan largely hinges on approval from the Local Finance Board for the town to pay out the $2.2 million in 2012 tax appeals over three years in an effort to lessen the impact on taxpayers. Residents would receive the tax rebates this year, but Teaneck would issue refunding bonds.

If the move is approved by the finance board, the average Teaneck homeowner assessed at $452,622 would pay $3,949 in municipal taxes, according to the town’s application. Without approval, homeowners would pay $4,061 in taxes, a $171.09 increase.

Teaneck officials were notified of the tax appeal impact Jan. 7, according to the application. The township allocated $200,000 for tax appeals last year, but the town planned to designate $1 million this year for the fund.

“Approximately 45 percent of tax appeals filed in 2012 were done by mass filling, through attorneys or other service companies,” the application said. “As a result the township could not anticipate the magnitude of increase in appeals and related refunds.”

According to the document, 1,800 tax appeals were filed in 2012. If approved, the council has committed to a revaluation in 2014 to be effective in 2015, the application says.

“Although the number of appeals was quantified, visibility into the potential tax impact of these appeals remained unclear,” the application states. “Throughout 2012, the Council received various updates on the status of the tax appeals during closed session meetings.”

Township resident Alan Sohn criticized the council for not disclosing the multi-million dollar tax appeal impact in previous budget presentations and council meetings. He called on the council to make wide-ranging cuts.

“This isn’t a prudent budget,” Sohn said. “We need to make real cuts.”

Sohn proposed cuts including eliminating new hires, rescinding council salaries and health benefits for members who receive them, putting the former police building project on hold and scrapping the Milton A. Votee Park field upgrade.

“Stay here as long as it takes to cut $2.2 million from the budget from the next three years,” Sohn told the council.

Councilman Mark Schwartz, however, said residents appreciated town services and pointed to well-staffed police and fire departments.

“Would I love to see a cut? Absolutely, but here’s the problem when you cut budgets, you cut items, you cut people and you cut services,” he said.

Schwartz called for new ideas to increase ratables to offset the impact on taxpayers.

Councilman Henry Pruitt also pointed to a need to increase ratables in town.

“We don’t have the money coming from the taxpayer’s homes. We do have a few properties that could be developed,” he said.

Teaneck resident Charles Powers said “it was clear as a bell” that tax appeals were mounting over recent years.

“Since 2007, it’s been clear that housing values were collapsing and our evaluation didn’t take it into account,” Powers told the council.  

Expenses in the budget include approximately $12.3 million in police salaries, about $9.78 million in fire department salaries and almost $3.4 million for public works. The town will pay $4.29 million to the Bergen County Utilities Authority.

The township's allocation for legal fees remained high, with $71,000 set for salaries and $929,800 for related expenses.

The council is slated to hold a public hearing on the budget April 23. Council members were also expected to move any possible changes to the budget at the April 9 meeting.

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