Revenue Shortfall, Delinquencies Push Taxes Higher In Oradell
Average home will see a $167 increase for the 2012 municipal budget
With decreases in revenue and an increase in delinquent taxes, Oradell was faced with a difficult budget season but finally introduced is 2012 Municipal budget on Tuesday night. The $13.53 million budget calls for a $10.59 million tax levy which falls at the state mandated 2% tax levy cap.
"This was a very difficult budget year with many factors contributing to the difficulty," Councilman Garrie Murphy said. Murphy is chair of the finance committee. "We had a $400,000 shortfall between revenue and expenses that needed to be addressed."
Among the lack of revenue issues Oradell has faced is a prior problem where neither Emerson or Haworith paid their sewer fees to the borough. Oradell serves as the lead agent for all three boroughs. On average, the neighboring towns contribute $17,000 each to Oradell for their sewer fees.
During a Saturday budget meeting, borough auditor Chuck Ferraiolo, stated that Oradell is facing $595,385 in delinquent taxes from 2011 and 2012. Last year, the borough received $303,000 in delinquent taxes, approximately $4,000 shy of what was owed.
To combat the growing number of delinquent taxes being paid, the borough approved increasing the reserve for uncollected taxes percentage up to $465,216.82 for the coming year.
"For the balance of the year, the finance committee will defend the budget at the next meeting and explain in detail what was done," Murphy said. "Then we will begin on the capital budget for the year and then start work on fiscal 2013 budget as that seems to be as difficult if not more so than this year's."
For the average assessed home of $531,722, taxpayers will see an increase of $167.27 for the annual tax bill or approximately $13.94 per month.
The public hearing on the 2012 Municipal Budget is scheduled for Wednesday, May 23 at 7pm in Borough Hall.