Hillsdale Amends Budget For Slight Tax Increase, Debt Decrease

The Hillsdale Council voted to amend their proposed budget after some officials voiced concerns over the amount of money which was planned to be borrowed during a special hearing Wednesday.

The council voted 4-2 to move a number of smaller capital items — worth about $55,000 together — into the operating budget and issue bond anticipation notes for $285,000 for the cost of two vehicles and the first year of a 20-year road resurfacing program.

The money for the smaller items wil be taken from the budget line item used for tax appeals. Borough auditor Paul Lerch said that would still leave about $317,000 for appeals because of leftover funds from 2012, which he said should be more than enough.

If the budget is approved as amended, it will mean a 2 percent tax levy increase and an increase of about $60 in taxes for the owner of the average borough home assessed at $469,400. The previously-introduced budget included a 1.9 percent tax levy increase.

Officials had also considered moving the vehicles — SUVs for the Police Department and Fire Department — into the operating budget, but that would have brought the tax levy increase up to 2.5 percent. Councilwoman Chris Looes said she was wary of increasing taxes that much right after a revaluation.

Lerch said that the borough needs to reduce the amount of money it spends from its surplus because more money has been going out that going in for several years. The amount of money that will be taken from the surplus under the proposed budget is about $400,000 less than the amount taken last year.

The vote to amend the budget ended up splitting along party lines, with Democrats Tom Kelley, Jason DeGise, Chris Looes and Larry Meyerson voting in favor and Republicans Doug Frank and Frank Pizzella voting against.

Mayor Max Arnowitz said he had not been informed that the introduced budget included capital expenses which would have had to have been borrowed.

Meyerson said that the meeting Wednesday was to inform everyone about the details of the budget and allow officials and members of the public to ask questions.

"Nobody was hiding anything from the public," Meyerson said. "Nobody was hiding anything from you."

Arnowitz said that he did not want to borrow because previous councils had "worked very dilligently" to reduce debt. Lerch said he believed that Hillsdale may have the lowest debt per capita in the Pascack Valley.

Meyerson and DeGise said they believed this was a good time to issue bond anticipation notes because of low interest rates, though the rates from this year will not be fixed until the actual bond is issued.

The council will hold another budget hearing at their April 9 meeting, during which Lerch will make a presentation. They are expected to vote on the budget at the same meeting.

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