HILLSDALE—The borough administrator told Pascack Press that councilors plan to discuss cost estimates and bond financing for proposed Memorial Field upgrades at the March 11 meeting, including the costs of natural sod versus artificial turf.
Administrator Michael Ghassali emailed us March 6, “I plan to give to the council the plan with a financing schedule and what we can afford and what we will get for what we can afford.”
On March 4, councilors said the projected field upgrade costs were estimated at $5.8 million, or less, over a likely 15-year bond term. Average annual tax impacts were not yet available.
Ghasssali said that they hoped to bundle purchase of a new firefighting apparatus and the Memorial Field upgrades in a single bond offering, if possible, which could provide lower interest rates on the bond.
Possible field improvements, initially estimated $6 million to $10 million, were lowered significantly following recent meetings. Field neighbors and other residents have criticized the park upgrades citing project costs, possible noise, traffic and light pollution.
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Proposed 2025 municipal budget
As well, the borough’s chief financial officer said March 4 that the proposed 2025 municipal budget will increase by just over $553,000 next year and will be formally introduced on March 11. A public hearing is scheduled for April 15.
During a 22-minute budget analysis, CFO David Young presented a slide deck (available on the borough website) and fielded questions on 2025 budget priorities. Officials said the average homeowner’s municipal tax levy would likely rise by $154, or nearly 6% over last year, bringing the average municipal tax bill to $3,284. The average assessed home value in the borough is $476,683, officials said.
Councilor John Ruocco, also Finance Committee chair, called the budget “fiscally sound and a necessary budget under the fiscal circumstances the borough finds itself in.” According to preliminary figures, the total proposed 2025 budget stands at $18,971,000, reflecting an overall 1.8% decrease in revenues and expenditures from the prior year.
Key Budget Drivers
Young said the budget faced “significant challenges” on both the revenue and expense sides. Salaries and wages are up 8.6%, with a $283,479 increase in police department salaries due to a newly approved collective bargaining agreement. Additionally, a $76,000 increase will fund a new school-based special law enforcement officer (SLEO), though this cost will be offset.
Of the total $455,000 increase in salaries and wages, $365,000 is attributed to police costs. Young also projected a “huge increase” in inspections at the under-construction Patterson Street Redevelopment, estimating additional costs between $75,000 and $78,000—likely to be offset by developer fees.
Insurance and pension costs are up about 9%, with health insurance alone rising nearly 13%. Young noted that local officials have “very little control over” state pension and insurance costs.
The five largest budget increases total $837,985, with the biggest cost drivers being:
- Police salaries and wages: +$283,479
- Employee health insurance: +$186,894
- State-mandated library funding: +$74,612
- Solid waste removal contract: +$200,000
- Accumulated absence payouts: +$93,000
The accumulated absence payouts will reimburse retiring employees for benefits such as unused sick days and vacation.
The estimated total tax levy increase is $553,366, though officials noted $285,000 in spending reductions, cost-cutting, and shared services helped curb the increase. However, specifics on where savings were found were not detailed in the presentation. Officials said individual departments were asked to cut costs to help reduce 2025 expenses.
Potential School Tax Increases
Local taxpayers may also see increases in school taxes in 2025 due to bonding for the $62.4 million voter-approved referendum to renovate George White Middle School. Before last fall’s approval, the estimated annual tax impact for the average homeowner was $840.
The school district initiated its first bond sale in December to cover project startup costs. The bonds received a “AA” rating, allowing the district to access funding at a lower-than-anticipated bond rate. However, it remains unclear how much school taxes may increase due to the December bond sale.