HILLSDALE, N.J.—Mayor Michael Sheinfield told residents June 30 that the borough is working to limit annual municipal budget increases through shared services with nearby towns, new development revenues and additional tax ratables.
Approximately 100 residents packed council chambers for a 90-minute town-hall-style meeting focused largely on local tax bills, how to reduce them, and why taxes increased by nearly $1,440 on the average assessed home valued at $500,000.
Sheinfield said the largest municipal increase was a 41% jump in employee health insurance costs under the state health benefits program. In addition, a final round of bonding for upgrades at George White Middle School added $1,142.95 to the tax bill for the average $500,000 home.
“We are the collection agency,” Sheinfield said, noting the borough sends out quarterly tax bills even though the municipal portion accounts for only 12.4% of a homeowner’s property taxes.
A pie chart presented by Sheinfield showed that 64.4% of the tax bill goes to the local school district; 17.9% to the regional high school district, Pascack Valley Regional; 4.3% to Bergen County; and 1.7% to the public library.
The county portion is generally larger, around 10%, but the school bond increase lowered that share of the overall tax bill, the mayor said.
The largest increase in local school taxes was due to the final round of bonding for a voter-approved $62.4 million project to renovate and expand George White Middle School. Voters approved the bond in September 2024.
Sheinfield called the town hall after including a letter in recent quarterly tax bills detailing 2026 tax increases, which he said prompted many calls and emails from residents. The meeting was livestreamed on YouTube and is available on the borough council’s YouTube archive.
Following the session, Sheinfield told Pascack Press the meeting was about “educating residents and getting feedback” on taxes and other issues. He said additional town halls on topics raised by residents will likely be held in coming months.
Sheinfield noted that the borough must have its annual budget approved by the state Department of Community Affairs and generally does not hear back from the state until May, after second-quarter tax bills have already been mailed. Because of the state’s timing, annual tax increases are generally reflected in the final two quarterly payments of the tax year, he said.
He said municipal costs have been reduced through shared-service agreements between Hillsdale and nearby communities. Examples include River Vale sharing its paid ambulance service; a merged payroll system with River Vale; an agreement to service Washington Township DPW vehicles in Hillsdale’s DPW garage; a merged municipal court with Westwood; shared fire inspection services with Westwood; and shared senior bus transportation with Woodcliff Lake.
In addition to shared-service savings, Sheinfield identified “potential growth” areas for revenue, including possible rezoning of Broadway from downtown to Woodcliff Lake for mixed-use development; additional ratables from fourth-round affordable housing development; and the return to the tax rolls of the remediated former Alexander Cleaners property.
Other revenue options, which he described as “dismissed options,” included a potential cannabis dispensary that could generate up to $500,000 annually in local revenue, plus a $100,000 local licensing fee, and a monopole cell tower, which could generate at least $48,000 annually and possibly more than $100,000 with additional carriers leasing space on the tower.
Sheinfield noted that every $110,000 in new revenue equals about a 1% decrease in local tax bills.
He said he was “not advocating” for a cannabis dispensary or monopole cell tower, but cited both as examples of revenue-generating options that could be explored. He later noted that the first Pascack Valley town to open a dispensary would likely reap the greatest benefit.
Sheinfield said one takeaway from the meeting was that residents have “a lot of confusion about tax bills.” Over 90 minutes, dozens of residents asked questions of the mayor and local schools Superintendent Robert Lombardy about annual property tax increases.
Some residents suggested taxpayers should also attend school board meetings, where decisions are made on the largest portion of local property taxes.
Mos t school board meetings are generally sparsely attended, and the Board of Education does not livestream or archive its meetings. The Borough Council livestreams and archives its meetings on YouTube and televises them on Optimum Ch. 77 and FiOS Ch. 32.
One resident said his taxes had increased nearly 27% over about 11 years living in town. Sheinfield said a recently approved self-storage facility in the redevelopment area off Patterson Street would add more tax revenue to borough coffers, generating about $208,000 annually on a site that previously generated about $17,000.
He also noted that revenue from a PILOT, or payment in lieu of taxes, agreement with The Piermont at Hillsdale, a 256-unit luxury apartment complex, should begin generating about $735,000 annually, compared with about $168,000 in prior tax revenue from the site.
Councilwoman Melissa Mazza-Chiong said a recently formed Economic Development Committee, made up of herself and councilmen John Ruocco and Anthony DeRosa, will soon survey residents and businesses about what types of businesses they would like to see downtown, including shopping options, boutiques and restaurants.