Municipal Budget Calls for Average $81 Tax Hike

Despite the loss of revenues and some of its state aid, the governing body has introduced a 2010 budget that is less than 1 percent larger than the 2009 spending plan. 

The Township Committee unanimously introduced a $16,647,957 budget Tuesday that carries a $11,149,294 tax levy that would increase the municipal portion of homeowners' tax bills by an average of $80.70 annually, based on the average assessed value of a home, $807,000. 

"It's a maintenance budget at best," said Committeeman Christopher DePhillips, a member of the governing body's Finance Committee.

The budget is only $21,047 larger than the $16.6 million 2009 budget, a .13 percent spending increase.

"Expenditures are flat," DePhillips said. "It's remarkable given that the township is receiving $595,000 less than last year."

The Finance Committee, Administrator Robert Shannon and CFO Diana McLeod had braced for another reduction in its state aid package, although the $373,363 lost under Gov. Chris Christie's cost-cutting was more than double what was expected (the budget incorporates the expectation of $1,093,271 in state aid, down from $1,466,634 in 2009). The challenge was compounded by the loss of $30,000 in interest income and $100,000 in construction code fees due to the down economy, as well as a $170,000 drop in the budget's fund balance. 

Meanwhile, the township faced various fixed increases that almost matched the loss of revenues. Approximately $524,000 will be spent on contracted salaries and benefit increases ($299,186) as well as state-mandated insurance and pension payment hikes ($36,898). Additionally, the nasty winter took its toll on municipal coffers, totaling $224,775 for overtime, plowing and salt, DePhillips said today, necessitating a $34,000 increase over the 2009 allotment.

Given those challenges, committeeman and Finance chairman David Connolly said the budget drafters "hit one out of the park."

"We have endeavored and did succeed in not passing along the governor's cuts to the taxpayer," DePhillips said.

"We didn't pass the buck," Connolly said. "We were up for the big game, and we knocked it out of the park."

Committeeman Brian Scanlan said, "While I would have preferred a lower increase,  I do believe we did the best we could, especially given the very low increase in expenses."

The township could have applied the entire $373K state aid loss toward the tax levy, essentially requiring homeowners to shoulder the burden. Instead, the  governing body has held spending flat where it can and/or reduced expenditures to deliver a budget with a "modest increase" and tax levy that would increase the average homeowner's bill by $6.73 a month. The entire $373,363 withheld by the state was made up with budget cuts and other cost efficiencies.

Among those cuts were a 16 percent reduction in capital expenditures and a 16 percent reduction in garbage disposal costs due to a collaborative effort with Franklin Lakes and Oakland. The Township Committee will again waive its stipend, saving $20,000, and a hiring freeze instituted last year is still in effect.

Funding by department was held flat, with a few exceptions.

"Departments understand that they'll have to do more with less," DePhillips said.

DePhillips said today that the tax assessor's office will see a bump, primarily due to increased tax appeals, legal expense funding will be increased by $77,000 due to litigation, the Planning Board will see an increase to deal with state-mandated reporting requirements and $57,500 more will be dedicated toward debt service.

"Even though we did come out with a relatively modest increase, we didn't take it lightly," DePhillips said. "We tried to keep the lid on any increase... but felt like we had our hands tied behind our back" due to the loss of state aid and fixed increases.

"In the end, it's a bare bones budget," he said.

"We're making the best of a bad situation," Mayor Rudy Boonstra said.

However, the coming months could bring some good fiscal news to Wyckoff. Finance Committee members had hoped to receive more than $ funds in time for inclusion in the 2010 budget, but the township is still waiting on word from the state librarian, who must approve the return of money. However, that money will be available for the next budget cycle, along with an expected $200,000 in library surplus from the facility's current budget.

"It will be very good news for the township of Wyckoff," Connolly said.

Additionally, Scanlan is investigating the possibility of installing solar panels on township-owned buildings to reduce utility costs. He said the township could pay for installation itself or pay a third-party supplier to outfit buildings. 

"The bottom-line goal is to save the township money," he said.

The budget will be adopted in May.