Page 6 THE VILLADOM TIMES IV • April 25, 2012 Mahwah Council approves budget and bond ordinances by Frank J. McMahon At its last public meeting, the Mahwah Council approved the township’s 2012 municipal budget and two bond ordinances totaling almost $3 million. The council adopted a $34,564,660 budget, which is $420,352 less than the 2011 final budget and $215,000 under the state-imposed two percent tax levy cap. A $1,805,000 bond ordinance will fund various capital improvements in the township, including $1,028,000 for road improvements, $141,000 for a police department dispatch console system, and $450,000 for the acquisition of a new fire engine. The $1.1 million bond ordinance will fund various water improvements in the township, including improvements to the East Crescent Avenue water main and the Campgaw Road transmission water main. The budget includes appropriations of $12,364,550 in salaries and wages, $3,750,000 in health insurance costs, $2,145,178 for the library, and $3,516,110 in debt service. Some notable changes in the appropriations include an increase of $479,550 in salaries and wages due to negotiated contract settlements, an increase of $50,000 to fund projected tax appeals, a decrease of $108,334 in the state-mandated contribution to the library, a decrease of $203,974 in pension costs due to the new pension reform statutes approved by the state, an increase of $11,983 in the reserve for uncollected taxes due to a projected decrease in revenues available to offset taxes, a decrease of $524,000 in health insurance costs as a result of discounts and decreased claims, and an increase of $70,100 for the increased price of oil. The revenues in the budget include $3,250,000 from surplus, $4,913,416 in state aid, $875,000 in construction code fees, and $21,985,265 in property taxes, which includes the library tax. The notable changes in revenue include a decrease of $575,000 as a result of the reduction in the amount of surplus available, a decrease of $85,000 in construction code fees, a decrease of $20,000 in interest on investments due to lower interest rates and available balances, an increase of $15,000 in municipal court fees, an increase of $35,000 in the hotel/motel tax, and an anticipated return of $182,557 in excess library funds being returned to the township as required by state statute. According to a budget analysis prepared by the township, the municipal portion of the total tax rate will increase by six tenths of a tax point as a result of this budget. As a result, there will be a $28 tax increase for the owner of a property with the average assessed value of $470,000. The analysis projects that the school tax rate will increase by 3.5 cents to 99.6 cents, the Bergen County tax rate will increase by seven tenths of a cent to 23.5 cents, the library tax will decrease by one tenth of a cent to 3.8 cents, and the municipal open space tax will remain at one cent. The result is a projected total tax rate of $1.63 for the township, an increase of five cents over the previous total tax rate of $1.58. The overall increase, if ultimately certified by the Bergen County Board of Taxation, would increase the total property tax for the owner of a property with the average assessed value by $235 per year. Councilman Harry Williams was the lone member of the governing body to vote against the approval of the budget. He objected to the township’s lack of a system of priorities for maintaining the physical aspects of the township which he said are depreciating. He explained that, before he would vote to approve the budget, an additional $250,000 would have to be allocated toward the improvement of roads. Resident David Bagatelle, the chairman of the Blue Ribbon Advisory Panel formed by Mayor William Laforet to advise him on the 2012 municipal budget, read an open letter to the township’s citizens. Bagatelle’s letter described the purpose of the panel, which consisted of 14 long-term residents who, with the assistance of the mayor, Mahwah Township Administrator Brian Campion, and Chief Financial Officer Ken Sesholtz took a “fresh look” at the budget process. The group then suggested ideas to decreasing expenditures and increase revenue while maintaining excellent service within reasonable financial parameters. He said the panel also sought recommendations and ideas from the citizens. He said the panel had to face the fact that that revenues from tax collections were down further than anticipated (continued on page 14)