EMERSON, N.J.—The Borough Council unanimously approved an amended municipal budget of $14.3 million on May 4, dropping the average homeowner’s annual tax hit from $93, as proposed in April, to $84.
A final public hearing on the budget is set for May 18. Mayor Danielle DiPaola said no other subjects are on the agenda.
Borough auditor Gary Higgins said that the amendment added in increased revenues and surplus funds to the 2021–2022 budget that helped reduce the local tax levy.
Approximately 50 residents were tuned in online to the May 4 budget hearing.
After Higgins said the tax hit would be reduced, DiPaola said, “As you know, this governing body’s motto is to do as much as they can with as little as they need to and to continue to provide the good services that we’ve always been able to provide for the lowest cost.”
The amended budget includes total general appropriations of $14,376,189, a slight increase from the introduced budget of $14,045,923, but with added surplus funds, construction code fees, grants, and capital improvement funds, the average tax levy is lower, said Higgins.
Higgins said the average tax levy will go up 1.9 cents per $100 of assessed value, a decrease from the 2.1 cents in the initial budget proposal.
He said the borough had more room to increase under its 2% state budget cap, but came out $1,037,000 below the cap. “That to me was a very positive thing,” he said, noting the borough could have increased taxes up to an extra $320 yearly without exceeding its cap but did not.
Only two residents offered comments, which could be offered in-person or by calling into the meeting, also broadcast live via YouTube. Council meetings are archived online by YouTube for later viewing.
Resident Kate Stutzel asked whether redevelopment-related attorney fees and costs had been included in the budget. Borough Attorney John McCann said the litigation requiring Emerson to pay attorney fees for the redeveloper and Fair Share Housing Center, had not been adjudicated and could not be accounted for.
McCann said that with courts backed up due to Covid-related closures and postponements—in some cases 18 months or more—he could not be sure when final decisions would be made on pending cases filed by the borough against its redeveloper, Emerson Redevelopers Urban Renewal LLC.
The borough and redeveloper had filed dueling lawsuits over the last year, with the redeveloper charging project obstruction and alleging racism, and the borough counter suing for breach of contract for failure to reimburse it $500,000 in construction services for former ambulance property deeded to the redeveloper.
Resident Brian Todd said it was good news that the amended budget would include over $1 million in surplus funds to help lower its tax impact. Higgins noted that the borough surplus represents 13 percent of the next year’s budget.
A municipal budget summary online shows the following major categories: operating expenses, including salaries and wages at $5,113,099, and other expenses (including benefits) at $6,187,701.
It was unclear if a revised budget public notice was required, or when the budget amendment would be on the website.
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