PARK RIDGE—The Borough Council approved a nearly zero increase municipal budget in early May by using more than $330,000 of municipal budget surplus funds to pay for most of the annual increases.
However, taxes will still increase an average of $24 annually due to an increase in the state-mandated public library tax, said officials. Thanks to using the surplus, however, an average homeowner will save the proposed $122 annual increase in the $17.3 million adopted budget.
The May 9 budget adoption meeting can be viewed by going to the borough website and clicking “Meeting Videos” under the Government menu.
Following a 45-minute budget presentation by Council President William Fenwick, interrupted by several shouting matches between Mayor Keith Misciagna and Fenwick over disputed budget savings and using surplus funds to reduce property taxes, the council voted 4-0 to adopt the amended budget and use surplus to reduce annual property taxes.
Voting yes to adopt the amended budget were Gregory Hoffman, Bruce Goldsmith, John Cozzi and William Fenwick. Councilman Matt Capilli abstained and John Ferguson was absent.
Before passing the amended budget, the proposed annual increase for an average borough home of $474,000 was $122 in the introduced budget, but using surplus funds available, the tax increase was mostly eliminated.
The council approved using $330,000 from its surplus account of slightly over $1 million to reduce the municipal tax levy cost to zero. That leaves about $750,000 remaining currently in surplus, said Fenwick during his presentation.
Several officials argued over how much funding should remain in a budget surplus account, both for unanticipated local expenses and emergencies.
Some officials, including the mayor, questioned lowering the surplus to $750,000 while the mayor questioned Fenwick’s estimated cost savings that could help to gradually replenish the $330,000 taken from surplus.
However, state-mandated library taxes increased on the average home from $190 to $214 per year, an average increase of $24 per home, he said.
According to the amended budget approved, a municipal tax levy of $11,214,108 is to be raised by taxation, and $706,093 as a minimum Library Tax.
Miscaigna said the amended budget was passed with a lesser surplus, leaving approximately $750,000 in surplus.
“All I’ll say is I hope that it doesn’t affect us down the road,” said the mayor.
He said his vision was to “make hard cuts and get taxes under control and not dip into our surplus” which mirrors the advice he said he received from borough finance professionals.
“It’s done and we’ll live with it and we’ll say a novena when you get home,” said the mayor following 4-0 vote.
After Fenwick’s budget presentation, Fenwick was interrupted at several points by Mayor Keith Misciagna, who disagreed with Fenwick when he noted $100,000 would be saved by merging the administrator and clerk positions, which led to Julie Falkenstern’s termination earlier this year.
Fenwick said that there would be at least $330,000 in increased savings or revenue coming in next year, including $100,000 in savings from Falkenstern’s termination and not paying her administrator’s salary and medical benefits.
However, Misciagna said he would not let Fenwick say that there were savings from Falkenstern’s termination but Fenwick insisted that there were. That led to several shouting matches between the two.
“It’s the truth,” replied Fenwick.
Responded Misciagna, “I’m not going to let you say it, you’re incorrect,” as both shouted at each other until Misciagna stated, “Hold on a second, this is my meeting, you’ll stop. I get to chair the meeting. Now I’m asking you to stop speaking, can you do that?” yelled the mayor.
Misciagna said previously when the borough had a low surplus account, that affected the borough credit rating, which increased bonding costs, and also affected the municipal budget for four or five years.
Misciagna said later that he was not fighting with Fenwick over the tax breaks for residents, but instead noted that he wanted “to do it responsibly and responsibly is to make hard cuts. Have you made any real hard cuts?” he quizzed Fenwick.
Fenwick cited an alleged $100,000 in savings from terminating Falkenstern’s dual position while Misciagna said those savings were nullified by a raise to the new administrator and borough clerk Maggie Giandomenico and others doing additional duties.
Fenwick disagreed completely with Misciagna; Misciagna said he would “illustrate that” there were no savings at the next meeting. He did not mention the matter at the May 23 meeting.
Both Fenwick and Misciagna again loudly argued over an annual $78,000 parking lease payment to The James, and who was responsible for monetizing the spaces there.
Misciagna said Fenwick did not do anything for two years and Fenwick said that he had been “begging” the council to do something about monetizing the parking spaces.
Fenwick also said that “remonetizing” the commuter parking lot was likely to generate $10,000 to $15,000 annually, which Misciagna disputed. The lot had previously waived parking fees during the Covid pandemic, he said.
Fenwick estimated about $330,000 would come in from areas that he targeted for savings or revenues, but Misciagna said that would not occur.
Misciagna asked finance professionals at the meeting whether they could see the savings as outlined by Fenwick but it was not clear whether they all agreed on what savings or revenues were possible.