March 23, 2011 THE VILLADOM TIMES III • Page 5 Ho-Ho-Kus Council to introduce budget with one percent levy cap by Jennifer Crusco This week, the Ho-Ho-Kus Council plans to introduce the borough’s budget for 2011. A special session has been set for 7 p.m. on Tuesday, March 22 at borough hall. During last week’s work session, Ho-Ho-Kus Chief Financial Officer Joseph Citro provided an overview of the $7,655,086 spending plan, which was pared down to within a one percent levy cap – going beyond the state’s mandated two percent cap. Overall, the budget is down $235,000 from last year’s spending plan, and includes a tax rate of 56 cents per $100 of assessed value. Due to the recent reassessment, the borough’s average home is now assessed at $725,000, down from $900,000 last year. Based on the proposed municipal-purpose budget, the owner of a home assessed at the new average can expect to pay an additional $120 for municipal services, Citro said. This extra $10 per month does not include taxes stemming from the local school district or from Bergen County. After the meeting, Citro told Villadom TIMES that last year’s tax rate was 46 cents per $100 of assessed value, but explained that the 2010 rate would have to be adjusted to account for the reassessment that took place late last year and took effect in 2011. The adjusted 2010 tax rate, he said, would be closer to the 56-cent rate that is associated with the 2011 budget. Citro said he and his fellow members of the Budget Committee – Mayor Thomas Randall, Councilmen Kevin Crossley and Kevin Shea, and Borough Administrator Don Cirulli– had aggressively combed through the departmental budgets in order to stay within the cap. “We cut over $300,000 to get to where we wanted to be,” Citro said, adding that the borough was able to hit the two percent cap and then pare down further to make a one percent cap. Citro explained that, by trimming down to the one percent level, the borough will now have $110,000 to “bank” for potential use in 2012. The CFO noted that cuts included the number of parttime staff members, employees’ hours, and funding for seminars and overnight stays. He said there would be a zero percent increase for all personnel, including police. He added that the police department would realize a savings of $20,000 to $50,000 due to the 2010 retirements of former Police Chief Gregory Kallenberg and Officer Mike Tuttle. Mayor Randall noted that the police desk will be covered by dispatchers, who are paid at a lower rate than the police officers. He added that insurance costs, sewer charges, and several other expenses are outside the council’s control. Citro highlighted one of those expenses: the 22 percent increase in pension costs. The CFO explained that the increase in pensions for 2012 would be approximately nine percent. Citro also said that, while some surplus was used to offset the 2011 tax rate, approximately $400,000 remains in that account. “We felt it was critical to have surplus,” Shea said, adding his view that it is time to arrest the use of surplus and have the account begin to grow again. Randall added that the surplus fund is necessary to handle emergencies, and pointed out that the account has lagged in recent years as returns on investments decreased. Randall also pointed to the borough’s loss of state aid. The council also discussed the concept of raising fees, which Borough Administrator Don Cirulli had covered briefly in his report earlier in the meeting. According to Cirulli, various local bodies – including the Ho-Ho-Kus Shade Tree Commission, the construction department, and the planning and zoning boards -- are reviewing their fees. He said many local fees have not been updated in 15 to 20 years. Mayor Randall said the potential fee increases may not affect this year’s budget, but the charges would be updated to bring them in line with those in effect in surrounding communities. “We really went by need,” Randall said of the items included in the 2011 budget. “We said ‘no’ to pretty much everyone who had a discretionary request.” Councilman Crossley noted that the police department is due to receive a new vehicle this year. However, he said if the car were not purchased this year, the borough could have to replace multiple police cars in 2012. Crossley also questioned whether a mobile digital system for the police department had been included in the budget. Citro answered that he had included this item, but said it could be removed before the bond ordinance that would fund the expense is introduced. Citro also recommended that the borough “lump” the items to be bonded. Randall agreed that it would pay to consolidate and cut down on associated costs to the borough. “Across the board everybody got sliced,” Crossley summarized. 112 Greenwood Ave. • Midland Park, NJ 07432 Phone: 201-445-0200 - Fax: 201-891-4407 BENSON VER HAGE ELECTRIC INC. Car Stereo - Alarm Systems Hands-Free Kits 201-445-5151 Audio & Video We accept Credit Cards Reliable, friendly neighbor here to help! Lic #1051 Sales • Installation • Service Free Estimates GENERATORS HIC# 13-VH00021900 SHOP LOCAL Support Your Allendale Merchants 2-23-11 janine ReedAudio2x2(2-23-11) 2 x 2” Allendale Chamber of Commerce Visit us at 3-23-11 pat/janine BensonElectric2x2.5(3-23-11) Caring for Your Beautiful Landscape is our Specialty 2 x 2.5” LET THE PROFESSIONALS SAVE YOU TIME AND MONEY We offer three levels of Property Maintenance & Garden Service Basic or Premium Lawn Care Design Construction (Design Fees Apply) www.AllendaleChamber.com Spotlights on new and existing members on a rotating basis. Find out about upcoming events and goings on in Allendale Irrigation Lighting Service ����������� www.chrisjameslandscaping.com info@cjlands.com All major credit cards accepted (201) 670-9000 30 th Residential & Commercial N.J.D.C.A. Lic#13VH01114000