June 6, 2012 THE VILLADOM TIMES I • Page 5
Franklin Lakes
Governing body opposes proposed user fee law
by Frank J. McMahon The Franklin Lakes Council has passed a resolution urging state legislators to oppose bills that would require user fees for providing traditional municipal services to be included within the two percent municipal and county property tax levy cap. S1914 was recently passed by the New Jersey Senate on a voice vote and the bill was then amended and passed by the Senate by a 27-0 vote with 13 senators not voting. The bill now awaits a third reading and vote in the Senate, and then a similar series of votes in the Assembly, where a similar bill, A2975, has been referred to Assembly Housing and Local Government Committee. The borough council opposes the proposed legislation because they claim the definition of “traditional municipal services” in S1914 is open-ended, which would leave municipalities unsure about its application and, therefore, unable to properly plan budgets for future years. The council also objects to the fact that user fees for traditional county and school services would not be subject to any of the provisions of S1914, even though they have a greater impact on the local property tax bills than user fees. “It is at times more appropriate to fund some services by user fees,” the resolution states, “especially those services for which a recipient and a cost can be clearly and accurately calculated. If municipalities are prohibited from charging user fees they may be forced to discontinue the services, forcing residents to obtain the services from a private provider, often times at a higher cost than the user fee. “As municipalities struggle to meet the two percent tax levy cap without the full effects of the management reforms and the continued diversion of energy receipt taxes, officials are forced to re-examine their budget and priorities, and, in order to deliver the services that their residents expect and want, local officials have been making structural changes to their budget, including how programs are funded. “Municipalities must retain the financial flexibility to address their own unique fiscal issues and meet the demands and expectation of their residents.” Mayor Frank Bivona pointed out that the borough’s opposition to this proposed legislation is based primarily on principle because the borough’s fees are based on the cost of its sports programs. Franklin Lakes Borough Administrator Gregory Hart explained that all the borough’s fees are already within the two percent cap. Bivona explained, however, that a lot of towns are having a problem meeting the two percent cap on their budgets. He said, “The municipalities are not the problem.” Bivona claims the state and county governments are keeping the energy receipt taxes that are supposed to be returned to the municipalities, and they are not funding pensions, while they continue to add unfunded mandates on the municipalities. Bivona also highlighted the county’s recent action to limit the use of the half of all fines municipalities collect for violations of the state’s motor vehicle traffic violations law to the repair and mainte-
nance of culverts on county roads. (continued on page 10)