Once at 6.5%, Council Sets 1.9% Tax Increase

Despite continued , the council approved a motion Thursday to set the tax increase for the budget at a 1.9 percent increase instead of the 6.5 percent originally introduced in March.

“Whether it is a tax increase at 6.5 percent or 4.5 percent, those kinds of increases far exceed what the average person is making in terms of salary,” Councilman Matthew Moench said. “I think it is incumbent upon us to work to keep the tax increase in line with what the public can afford.”

“I think about 2 percent is a fair number,” he added. “It is what residents can agree on that costs do go up, but it recognizes the financial reality.”

The includes a 6.5 percent, or $65, increase over the 2011 municipal taxes—and council members have said it's not acceptable.

The budget is currently set at $38,451,229.13, a 4.5 percent increase over the 2011 budget set at about $36.8 million.

The municipal tax for a Bridgewater resident was initially set at $1,053 for a home assessed at the township average of $411,662—that was the tax with the $65 increase.

With the 1.9 percent increase, the municipal tax is set at about $1,008.

Councilman Howard Norgalis said he believes the township is going to have to do more with less. And in reality, he said, the township is not cutting from last year’s budget because it is still increasing taxes by 2 percent.

“With services, although the mantra is that we don’t want to cut them, the reality is we have to look and see if the sum can be trimmed,” he said. “We have to look at shared services as a new opportunity. We have to lighten the tax burden on Bridgewater residents.”

Councilman Filipe Pedroso, who was the third member to vote in favor of the 1.9 percent increase, said he believes that would be a viable option for the town.

“I think there is room to go under 2 percent,” said Pedroso, who initially wanted to see a 0 percent increase. “I see how some tax increase could be necessary because of some expenses that carried over and there is some sense in increasing surplus.”

But Councilwoman Christine Henderson Rose said she believes a 2 percent increase is shortsighted. She said she would prefer to see a 4 percent tax increase.

"I think it cuts very seriously into our ability to operate the township in an effective way," she said. "It lacks foresight in terms of planning."

Rose said she is concerned by the list of cuts that have already been put out by the sub committee on the budget, of which she was a member.

Among the potential cuts, Rose said, are for after-hours health inspections; one recreation program; one-third of the police overtime budget, which includes officers for required court appearances; administrative support of senior citizen programs; computer upgrades; 10 percent of the budget for local ambulance squads; and a planning secretary.

And among the items that have to be included in the budget, Rose said, are pending litigations, grant writing functions and more.

Rose said she believes the residents are more concerned with seeing those cuts than with having to pay the $65 increase in taxes.

"They're not here with pitchforks telling us our budget is too high," she said. "But they will be here when they don't get the services they expect."

"When they are going to the planning board and walk in and can't find anyone to provide customer service, and when they can't find staff in the tax office when it's a staff of one [that will be the problem]," she added. "I don't know what everyone is thinking we are going to get out of a budget at 1.9 percent."

Council President Allen Kurdyla said he agreed with Rose, and is concerned more by what will be lost from the budget at the 1.9 percent increase.

"My concern is that sooner or later we will have to pay the piper," he said. "I think cutting to 2 percent is shortsighted and will effect the way we operate in the township."

Kurdyla said he does not think the change in the tax increase would be that significant anyway because a percentage point is equivalent to about $10. At the 6.5 percent increase, the tax increase is $65.

At a 2 percent increase, Kurdyla said, it will be about a $20 increase, with an about $40 increase for 4 percent.

"We're talking about taking the budget from a $65 liability to roughly $20," he said. "To take that and go to $40, as much as I am a taxpayer also, I find it hard to believe that $20 is a difference that we are talking about. That is not going to have a detrimental impact on anyone's mortgage."

But with the approved change in the tax increase, the next step is to make the cuts in the budget. According to state statute, once the budget is presented by the administration, it belongs to the council, who can work on the cuts, with assistance from the administration.

"We will look at areas where the council wants to reduce," said township administrator James Naples. "When we put the budget together, we didn't go into it with a tax increase in mind."

"But we are willing to work with you, to hear the areas where you have identified for cuts and elimination, and we will provide input as to why we came up with the initial numbers," he added.

Director of finance Natasha Turchan said the budget was initially supposed to be adopted by April 20, but the township does have until May 7 in order to get credit with the state.

"But judging by the number of amendments to bring it to 1.9 percent, it will take two meetings and we will miss the deadline," she said, adding that that could be helped by special meetings.