HILLSDALE, N.J.—Councilmembers cited a $350,000 decrease in municipal revenues as a critical factor in a local levy increase, introduced April 6. The proposed 2021 municipal budget of $15.6 million increases the average homeowner’s annual property tax by $138.
Following two-plus hours of discussion and disagreement, the budget was introduced, 6–0, after testy exchanges between the mayor and several council members over whether the borough should bond now or later for up to $10 million for a community center and improvements to recreational fields.
Officials said the $138 average increase on a $466,629 home, about 5.33%, was also due to stagnant state aid for a decade and decreased revenues from court fees, parking fines and fees and construction fees during the pandemic.
The proposed $15,578,797 2021 budget is set for a public hearing on May 4.
These included an overall increase of $300,000 in appropriations, a $295,000 increase in capital improvement fund to pay for 5% down payments on long-term bonds for Centennial Field improvements and a community center, a $90,000 increase for twice-a-week garbage removal upon budget adoption, plus an estimated $67,000 annual savings in police salaries due to outsourcing emergency dispatch to the county Public Safety Operations Center.
Other increases included pension costs and greater county utility charges, officials said.
Officials said significant revenue losses occurred in 2020 that led to a property tax increase, but much of April 6’s meeting was back-and-forth between council members supporting a down payment on a bond and those opposed, mainly the mayor and councilman Zoltán Horváth.
Ruocco told Pascack Press last week, “I have serious concerns about the size of the tax increase, which would be the largest since 2008. I also am concerned that the decision to bond is fiscally premature, unsupported by any project specifications on the community center, nor cost estimates.”
Ruocco, who only votes in case of a tie, repeatedly accused council members of deception by not telling residents what the anticipated annual cost of bonding was on $10 million, which Ruocco estimated at $307 annually over the life of a 10-year bond if and when the council decides to bond.
Ruocco noted the borough is expected to receive $1,012,000 via the $1.9 trillion American Rescue Plan stimulus funding, partly by June, and if allowed, he said all or a portion of it may be used to offset the property tax increase, after discussions and action by council.
“The budget assumes that a $10 million, 10-year maturity bond will be issued to finance a new Community Center and installation of artificial turf as well as other field improvements at Centennial field complex. Bonding for these projects would require a 5% down payment in the capital budget,” said officials during an April 6 presentation.
However, Ruocco claimed council’s decision to restart twice-a-week trash pickups—at an extra cost of $125,000 yearly—was not generally supported by residents and most would prefer only twice a week during summer. He called the trash pickup spending “wasteful.”
The 2021 capital budget includes funds to address Centennial Field drainage issues, new artificial turf and lighting upgrades; purchase of a bucket truck attachment for DPW tree work, repairs, and town decorations; radio upgrades for emergency responders; new fire department radios tied into the county frequency; new video equipment for parks monitoring and pedestrian crossing stop signs; a new police vehicle; and a road resurfacing program.
Throughout the April 6 meeting, tense exchanges occurred over Ruocco’s charges that the council was not being transparent with residents. Council President Abby Lundy said the council was being up-front about costs of the $10 million bond and project, but that the budget increase of $138 was what was being passed on to residents.
Councilwoman Janetta Trochimiuk said it was the council’s “general consensus” to bond and to “pull the trigger” and provide something of value such as a community center to taxpayers.
She said bond interest rates were favorable now, and also helped avoid the need to barter with a future redeveloper over density bonuses for a community center.
Trochimiuk said she checked with Horváth following a finance committee meeting where the costs of bonding were discussed and he favored the bond amount and financing. She said he later changed his mind, which is his prerogative.
She noted “numerous reports” were done on a community center and field improvements but that something needs to be done on both now and putting a down payment on a possible bond was a start.
Ruocco countered that taxpayers need to be informed about what they’re getting in a community center before bonding and options such as a shared one with Bethany Community Center in Washington Township needed to be explored before bonding.
However, Trochimiuk said residents “deserve their own community center” as opposed to sharing one with Washington Township.
Council President Abby Lundy said it was “the prudent thing to do” to place a 5% down payment in the Capital Improvement Fund for a possible $10 million bond issue in the proposed 2021 budget.
Lundy stressed that putting a down payment on a bond issue does not obligate the borough to bond for $10 million, but it allows the council to decide whether to do so.
She said the bond issue may even be for less than $10 million. She said once a plan is known, then a decision will be made by council on whether to bond.
Pizzella and Ruocco both said a plan was needed before the council could move forward on a bond issue and Lundy agreed that that was their plan. Ruocco pressed for a public discussion of council members’ “wish lists” for a center and Lundy agreed that would happen.
Each council member sent a wish list to Borough Administrator Chris Tietjen, who was to compile a list for discussion.
Ruocco said he did not believe a plan for a community center could be produced by June to allow members to make a timely decision on a bond.
He told Pascack Press, “The discussion of why a bond needs to be $10 million when we have not ascertained what either project should be, or what it should cost us, is frankly bizarre. If any one of us went before a board of directors in the private sector with such half-baked plans, we would be laughed out of the room and fired on the way out.”