RIVER VALE —The Township Council introduced a preliminary $22 million municipal budget at its April 8 meeting that includes a tax increase of $584,175, or 4.3% over last year’s budget.
The measure, if adopted as soon as May 20 at 7:30 p.m., will increase property taxes by $44 annually, or 1.2%, on an average, $600,000, home said town CFO Gennaro Rotella, who also serves as township administrator.
The introduced 2024-2025 budget of $21,962,568 is posted on the Finance Department webpage under Municipal Budgets.
Rotella said the increase in ratables added to local tax rolls, mostly from approximately 100 new townhome units built at the Fairways at Edgewood, has helped keep local tax increases down. The complex will include a total of 225 townhome units that will be added to local tax rolls. The development also includes 24 affordable units.
Rotella said the local tax levy for 2024 will be $14,131,024, an increase of $584,173, or 4.3%, from the 2023 local tax levy of $13,546,849.
Rotella said without the new townhomes being added to local tax rolls, an average homeowner might have seen a tax bump double or triple the current increase.
According to the Township of River Vale 2024 Budget Workbook, the total 2024 Budget (exclusive of grants) represents an increase of approximately $2,074,000, or 10.5%, from the 2023 budget.
“A lot of the townhomes came online and that increased our net assessed valuation,” Rotella told Pascack Press. He said the township saw a $67 million increase in net valuation in 2024 from 2023. He said the increase in ratables may also help in moderating the impact of local homeowners’ school taxes.
“When there’s more homes, you can spread out the taxes more,” he said. Rotella noted that a typical homeowner pays 22% in municipal taxes, 68% in school taxes, and 10% in Bergen County taxes.
He said municipal cost increases were due to increases in employee health benefits, pensions, and salary increases. He noted in the last two years, about eight employees were hired, including three police officers and five public works employees. He said in the last five years, the township has probably hired up to 15 new employees, replacing those who retired.
Under Executive Summary in the proposed 2024 Budget Workbook, the analysis notes that the spending plan “maintains a surplus of approximately $1,796,000 after utilization for 2024 operations. This equates to approximately 9% of the Township’s budget, exclusive of capital and debt.”
Revenues include anticipated surplus from the Golf Course Utility of $300,000 and $300,000 in prior-year accumulated surplus. Revenues also include $402,845 of funding remaining from the American Rescue Plan.
Under the Golf Course budget update, the workbook notes, “The golf course utility fund generated an excess of approximately $415,000 in 2023. Cumulative golf course surplus as of Dec. 31, 2023 is $2,793,197. The 2023 golf course budget anticipates utilizing $300,000 to be transferred to the Current Fund. $575,000 is being utilized to fund golf course operations in 2024 and $300,000 is being utilized to fund general budget operations.”
The River Vale Country Club is a semi-private, 18-hole golf course which is managed by Long Ball Golf Management LLC, states the RVCC website. The township owns the golf course.