- The Township Council recently adopted the 2008 budget with the expected 10-point increase. The average homestead - valued at $150,000 - will be billed $150 more in municipal taxes. The governing body also voted to place $300,000 from a Montclair State University (MSU) land sale into the township capital improvement fund. The actions were done without any debate.
Mayor Eugene Kulick had wanted to use the $300,000 to bring four points of municipal tax relief. He noted the $300,000 would be replaced through $320,000 in litigation settlement and delinquent tax collection revenue.
Kulick asked each council member to explain his or her position on the issue. He found the governing body completely supported the capital improvement option.
Councilman Joe Sisco said, after much thought, the $300,000 should go in the capital improvement account. Sisco said, besides equipment purchases, the funds could pay for a steady municipal grant writer. He added the tax break would only be temporary.
"I think $75 sounds great," he said, about the per homestead levy reduction, "but what happens next year?"
Council President Paul Huggins said investing in the capital improvement fund would alleviate future fiscal grief.
"We have to look at the long term plan in this, to not have taxes jump from one year to the next."
Councilman William Liess said the $300,000 can provide matching funds for federal grants. He said that idea works in tandem with the nearly completed township hazards mitigation plan.
"It gives an unique opportunity to have money available as our share of grants. My particular concern is the mitigation plan, which is near completion."
Councilwoman Pam Porter said she would have preferred the tax reduction alternative. Nonetheless, Porter said it is not guaranteed the $300,000 will be offset by the $320,000 court settlement/back tax income.
"We don’t know when it will come. Litigation takes a long time," she said about concluding. "If we had that money in our pocket now, I would have voted no," she said, about the capital improvement fund earmark.
Porter said she believes Kulick’s stance does make sense.
"I totally agree with the mayor that whether it’s the $300,000 now, or the $320,000 later, some of that should come back to the people. Economic times are tough."
Kulick said he is not happy with the governing body’s decision about the windfall. The mayor said he intends to speak his mind with a letter to the editor.
"I’m pissed. The taxpayers are getting screwed," he said, about not benefiting from the money.
After adjournment, Victor Nowak - a regular council meeting attendee - said he agreed with the council’s capital improvement fund vote. Nowak said the using the $300,000 for levy alleviation would not bring much meaningful relief.
"To some people, it means a little more than to others, but basically it’s insignificant for the total tax picture. If you shave it down to per person, per week, it doesn’t matter to a hill of beans."
