Town Leaders Aim for 2% Tax Increase or Below for 2012

Updated Jan. 26, 2012: The state has updated the deadlines associated with local budgets. Budgets must be introduced by March 9 or the nearest regularly scheduled governing body meeting thereafter; Budgets must be approved by April 20 or the nearest regularly scheduled governing body meeting thereafter.Maplewood's elected leaders agreed that they would aim for a tax increase of 2% or below for the 2012 budget — in keeping with the state-mandated cap and eschewing any banked cap or exceptions that the town is allowed.

Township administration said that the task was possible but presented some challenges.

As Township Administrator Joseph Manning noted at the beginning of the Town's first budget meeting on Saturday, Jan. 21, the town faces some fiscal constraints.

Manning said that two major storms in 2011 (Tropical Storm Irene and the October snowstorm) "really stretched our resources." He said that an additional $100,000 was needed beyond what was budgeted to cover overtime in the fire department due to both the storms and major sick time.

"This shows how vulnerable we really are because we are budgeting so close to the bone," said Manning, referring to last year's town budget which dipped into surplus to bring in an increase of .

However, Manning said there was good news that would help the town to balance budgets more easily. He noted the four which mandate 2% wage increases per year and also increase employee contributions to health care — to as much as 35% of premiums in coming years.

Manning also noted that the town had saved $934,937 by refinancing debt service on bonds for capital projects.

Manning said that the preliminary budget being presented to Township Committee members on Saturday by town staff was at a 2.16% increase over last year's budget. He said that the town would have to cut the preliminary budget by $300,000 — or increase revenues by $300,000 — to meet a 2% cap. 

"Last year you chose not to use exemptions or the banked cap, and I ask that you wait until all is presented to you before making that decision again," said Manning.

Manning said that all the town department heads had been told to keep their operating budgets level either through reorganizing or making cuts. "I asked them to focus on goals, accomplishments, and capital and personnel requests," said Manning.

The Township Administrator noted that he did not yet have all the final financial reports from 2011 as yet. Staff and auditors were still working them.

In answer to a question from Mayor Vic DeLuca, Manning said that he did not predict an increase in revenue for fees. He noted that while there were more construction permits filed in 2011, they were for smaller projects. "I don't think we will be exceeding our revenue goals," said Manning.

Manning also said that the state does not look favorably on one-time revenue sources such as the windfall the town will see from the sale of the 125 Dunnell Road parcel which should be completed this spring and . "It will be useful, however, to plug it in," said Manning.

Committeeman Jerry Ryan said he was interested in seeing how the new Walgreens affected the commercial tax base. "It would be nice to be able to say what the increase in assessed valuation is," said Ryan. DeLuca and Manning said that, although the Walgreens property had certainly increased in valuation, the overall tax base of the town may not have risen due to many successful tax appeals in 2011.

Each Township Committee member (with the exception of freshman member India Larrier) then enumerated his or her goals for the 2012 budget.

Marlon K. Brownlee said he would like to better understand capital improvements in terms of infrastructure and technology. He wanted the "big picture" on the life of municipal vehicles, and hardware and software, as well as the scope of road paving projects. He also said he would like to see the town budget for 2012 come in at "2% all in, overall" — meaning he wanted the total tax bill, including the school district and the county, to come in at 2%. However, he said he "wanted to be prudent in our use of surpluses and not dig into that overmuch." Brownlee also said he wanted the town to continue to aggressively pursue shared services: "Given 566 municipalities in New Jersey, there should be opportunities to partner. "

Deputy Mayor Kathy Leventhal said she wanted the 2012 budget increase to be below 2%, but "it doesn't have to be by much." Like Brownlee she said she would also like to see a less than 2% increase "all in," including the county and schools, "but I don't want that to fall on our shouders solely."

Leventhal also wanted to start looking at data "to see what some of our important departmental services are projected to deliver and what actually happens." For example, Leventhal felt it would be helpful to know "how many individuals does a particular sport service and what does it cost, if anything beyond fees charged. If few of our youth are involved in a particular sport, it may be best to consider sharing with another town, especially if costs of staff,
facilities, equipment, etc. are not covered by fees."

Ryan said he was "not interested in going over 2%" but that it was "too early to draw some line in the sand. Right now we have to be thinking as low as possible. We don't want to use any exceptions." He noted that people had the expectation of a two percent cap and were not interested in hearing explanations that the town had the option to use exceptions or banked cap.

Ryan pointed out that, with new department heads in both the recreation department and at the library, the town should "take the opportunity to look at all spending in recreation and cultural affairs, because we have a new person with fresh ideas and no devotion to legacy programs."

Ryan also noted that the town had had a lot of success "in the last year or two taking really good departments or services and selling them to other people." He thought that a re-invigorated recreation department could present another such opportunity. Ryan also said that he wanted this to be the last year that the Board of School Estimate exists (other school districts have residents vote directly on the school tax levy) and that he had instructed Town Counsel Roger Desiderio to "do some legal investigation for us."

DeLuca said he agreed with Brownlee on getting the big picture on the town's long-term infrastructure needs. "The roads got really whacked last year in the snow. We've gotta pay attention to our roads. I'm very happy to see a line item in the capital budget for line striping."

DeLuca said that it is "the little things that indicate to me that what we need is an assessment of what do we need to do to catch up."

Likewise, DeLuca said he wanted to remain aggressive on shared services, in particular continuing to focus on shared fire department services despite the end of discussions with South Orange. 

DeLuca also said that his "taxing threshhold is clearly 2%," but he said that he did not agree with "taking a hit on our end because of decisions by other bodies. We have to look at our budget and not mortgage the future." DeLuca said he wanted to improve budgeting by "breaking down the silos" within which departments operated. For example, he wanted to see department heads working together on senior services — and the same with youth services provided by library and recreation. DeLuca also wanted to see greater enforcement of quality of life issues like leaf blowers.

Manning took it all in, particularly DeLuca's request to break down silos.

"I hear you," said Manning, "and it is a cultural change that we are looking to. It will take time. But if we can accomplish some of this, we are moving ahead."