Action Center
Tuesday June 10, 2008
Pensions, Lack of State Aid Hurts Boro's Budget
West Paterson home owners will see a total tax increase for the next fiscal year of 14 points, according to Steve Wielkotz, West Paterson’s auditor.
Residents with a house assessed at $189,000 will see their tax bill rise $265. Mayor Pat Lepore said this “is the best we’ve done in eight years.”
“My long-term plan is starting to fall into place,” the mayor said. “Barring any surprises from Trenton, you will see stability in the future.”
“If not for the loss in state aid, and the $200,000 increase in pension contributions,” he said, about the state mandated retirement fund, “we would be flat this year,” Wielkotz said, about the municipal tax spurt. “There would have been no tax increase.”
Wielkotz said, with fixed costs, discretionary spending constitutes a tiny part of the borough’s fiscal outline.
“All the things the council controls in the budget is $16,695, out of a $13.2 million budget.”
The auditor advised the council to postpone fiscal outline adoption until Trenton passes the state budget. He said it makes “economic sense” to wait until they know for sure how much the borough will receive in general state aid. Wielkotz noted that “the legislature is still in the throes of the state budget.”
Councilman Keith Kazmark said the Corzine administration could decide to restore the previously slashed state aid.
“I think it is important that we wait, and if that money comes back to the borough, that would be two tax points,” Kazmark said.
Reprinted with permission. (c)2008 Passaic Valley Today (Passaic Co., NJ) Tom Boud
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