Page 16 THE VILLADOM TIMES III • May 2, 2012 The Waldwick Borough Council is getting behind a statewide effort to prevent the State of New Jersey from forcing municipalities to forfeit trust funds collected to meet local affordable housing obligations, even though the borough itself would not be adversely impacted by the state’s plans. The governing body is supporting legislation asking for a four-year extension for municipalities to commit their municipal housing trust fund dollars. “With the four-year extension, hopefully the towns affected would have a better idea on their obligations,” Borough Administrator Gary Kratz told the council. “They took away the towns’ ability to spend the funds when they dismantled the Council on Affordable Housing (COAH), and now because the towns haven’t spent the money, they (the state) want to take it away. They can’t have it both ways. I think this is foul,” he said. “We’re in a good position. Our exposure is limited,” Kratz said, noting that other neighboring municipalities have as much as $5 million in their affordable housing account. Developers are made to contribute to the affordable housing trust fund in each town where they want a project approved. Waldwick used its trust fund moneys to purchase at foreclosure the house on Wyckoff Avenue which it donated to Habitat for Humanity. The abandoned house was renovated into four affordable housing units, thus also contributing to the borough’s affordable housing obligations. The borough has only $35,000 left in its trust fund. Kratz said rather than forfeiting the funds, if the proposed extension is not approved, the money in the borough trust fund would be transferred to pay off the balance on the Habitat Town in good shape if forced to forfeit COAH funds house. He said the borough now owes itself $40,000 towards the Habitat house, which amount would have been paid off with future developers’ contributions. He said the $35,000 was being saved to meet regional contribution agreements (RCAs), but that they have been eliminated. The council is also supporting efforts by the New Jersey League of Municipalities seeking the restoration of energy taxes collected by the state but not given out to the towns. Kratz estimates that Waldwick is due $6-$8 million in taxes, particularly because the Public Service generating station is in the borough. Formerly known as the gross receipts and franchise taxes, energy taxes are funds the state collects from the utility companies but does not return to the respective towns. The borough now receives only $2 million, but the state collects $3.8 million in Waldwick. “When the state made itself the collection agent for these taxes, it promised to dedicate the proceeds to municipal property tax relief, since, just as municipalities collect property taxes for the benefit of school districts, counties and other entities, the state is supposed to collect energy taxes for the benefit of municipal governments,” the Waldwick resolution says. “For years, though, state budget makers have diverted funding from energy taxes to fund state programs, and instead of being spent on local programs and services and used to offset property taxes, the money has been spent as successive Legislatures and administrations have seen fit.” “”It’s unfair,” said Kratz.