Page 4 THE VILLADOM TIMES IV • September 11, 2013 Mahwah Auditor gives township good report card by Frank J. McMahon Auditor Lou Mai recently gave the Mahwah Council some good news about the financial condition of the town- ship for 2012. “I’m happy to say there are no recommendations for cor- rective action,” Mai said. “The debt is down $4 million over the last two years, which is commendable since other towns are increasing their debt, and the township responded to the storm (Hurricane Sandy) without any emergencies. The bond rating agencies look at those two things plus the man- agement of the municipality. In addition to reducing debt and evading emergencies due to the storm, the township is performing at 100 percent of its available best practices.” Asked by Councilman Steven Sbarra if there is any- thing the township could have done better, Mai said he understood there were some issues with overtime, but he pointed out that overtime is cheaper than hiring new people because new employees require more benefits. He pointed out there are other unique methods of compensation, such as merit pay for performance, but those methods have not yet been set up by the New Jersey Legislature. He also rec- ommended that the township continue to develop a reserve, or a “rainy day fund,” for health benefits for those years when the township might exceed the amount provided, which could cause tax cap issues. In response to a question by Councilman John Roth, Mai said the township is in good shape with its water and sewer finances due to the fact that Mahwah has a plan for what needs to be done and sets aside the necessary money. He said the two departments generally cannot be combined because not all residents receive the same services, but he could not answer if it would be proper to combine them without conducting a study to see if there would be a real savings. Responding to another question by Roth about how much of a reserve fund balance the township needs, Mai said that depends on the master plan for continuing main- tenance. Mahwah Township Administrator Brian Campion pointed out that the township is also building up a capital fund for major projects rather that borrowing money for them. Roth asked if the township would soon look at water and sewer rates given the good financial condition of the township. Campion responded that the sewer rates may be looked at within the next year if the Northwest Bergen County Utility Authority rates stabilize, but the water rates would not be reviewed. Mai added that, if the sewer charge by the NBCUA is reduced, that would be the time to review the sewer charges. (continued on page 23)