HILLSDALE, N.J.—A preliminary municipal budget with a 0% increase that permits the twice-a-week garbage pickups residents have long requested likely will be introduced April 6.
That’s according to Borough Business Administrator Christopher Tietjen, who on March 9 said that he has discussed preliminary budgets with the borough’s Finance Committee ranging 0% to 4% increases.
However, it appears the 0% increase will be recommended on April 6, said that committe’s chairperson, Abby Lundy.
That budget also assumes significant savings from outsourcing emergency dispatch services and reduces the contingency spending line item.
Tietjen said he asked his staff to focus on shared services this year. He thanked the police and public works departments for their efforts to save funds via shared services.
Lundy pointed out that the zero increase budget supports a $1 million cash capital program.
Mayor John Ruocco said a number of capital improvement items will be funded out of operating revenues and assumes no borrowing. Those will be detailed on April 6 during a full budget presentation, he said.
Tietjen said there was no correlation to savings from outsourcing dispatch and the new twice-per-week garbage pickups. Tietjen said one tax point increase, or 1%, is added to the budget for every $170,000 increase in costs.
Lundy said that Tietjen told the Finance Committee that this may not be the year to bond for capital improvements. However, Tietjen said if the council does decide to bond, the borough must put 5%.
Ruocco said “This is a good time to borrow money if you know you’re going to borrow X amount of dollars.”
He said the amounts being talked about, up to $10 million at 2% or 2.5% for a community center, “It’s the maturity and principal amount that drives your annual debt servicing charge.”
He said the low interest rates now are not “the driving factor” for deciding on whether to bond for improvements such as Centennial Field improvements or a community center.
Lundy asked how they could move quickly on a community center and field improvements. Pizzella said officials should get an idea of what they’re looking to bond for in a community center and then ask an expert what they can get based on an amount they feel comfortable to bond for.
Councilwoman Janetta Trochimiuk said that this year the borough’s $620,000 in bonded debt service costs will go to zero, and that bonding this year for a community center and Centennial Field upgrades should be considered. “This is very doable and not something to be afraid of.”
Tietjen said if the council can develop a clear 2021 capital plan in a couple months, it may be possible to bond for the community center and Centennial Field.
Councilman Anthony DeRosa said he had campaigned on improving Centennial Field and urged the council to get it done this year.
Depending on the amount, the council will decide whether to vote on a bond issue or put it to a referendum later this year