The Alternative Press

CHATHAM, NJ - The Chatham Borough mayor and council introduced its 2013 municipal budget on Monday night that includes an almost 1.8 percent hike in the tax rate.

The $13.66 million municipal budget will have a $47 increase in taxes for average assessed home of $660,325 which is a 1.79 percent hike compared to the 2012 municipal budget. The average taxpayer will pay $2,668 compared to $2,621 in 2012. Including the utility tax (water, sewer and solid waste), the total municipal tax for an average assessed home will be $79 from $3,449 to $3,528.

The mayor and council will meet on April 8 for the budget's second reading.

The 1.79 percent tax rate hike is a far cry from last year's budget that saw a 6.81 percent rise because of storm and legal costs.

Mayor Bruce Harris lauded the council's finance committee along with Borough Administrator Robert Falzarano and department heads for paring down the budget.

"At one point in the fall we were looking at was much higher," said Harris. "We now come to a tax increase that is much more reasonable."

While Harris pointed to this year's budget, the borough officials are also looking beyond 2013 when it comes to debt service and revenues. "They (department heads and officials) are reminded to think ahead and I think it makes a difference," said Harris.

Also Councilman Gerald J. Helfich lauded the work of the department heads for their work. "Our employees are not only being realistic, but also being frugal," said Helfich. "We're looking for it (increases) to be justified."
The municipal portion of a homeowner's tax bill is only one of three elements that includes school and county taxes. Chatham municipal budget is 22 percent of the total taxpayer's bill. The school tax takes the largest bite out of taxpayer's bill with 63 percent coming from the education budget.

With the 1.79 percent tax increase, the borough is far below the state mandate of a 2 percent increase in municipal taxes. With Governor Chris Christie coming into office a few years ago, the state has mandated that municipalities reduce their tax increases.

Along with the state mandate, state aid has also decreased. Chatham borough received the exact same amount of state this year compared to 2012 in $572,099.

In reference to the years before the Christie administration took office, Councilman James Lonergan, head of the finance committee, said there is no fat in the budgets. "You can't have padded budgets. Those days are long gone," said Lonergan.

And Falzarano agreed. "We get tighter and tighter on the budget so we have less flexibility on the budget," he said.

Later in Monday's meeting, the council approved an ordinance that allows them to increase the budget to 3.5 percent only on an emergency basis.

The largest percentage for expenses was on the police side that is 20 percent of the total expenses. In addition debt service and reserve for uncollected taxes are 14 percent and 13 percent respectively, but Falzarano said that all three dipped for the 2013 budget.

Like the tax side and expense side, the revenue side was flat that includes water, sewer, leases and other revenues. Falzarano pointed out that revenue from parking meters took a dip because of Hurricane Sandy that caused 10 days of fewer parking meter days.

Lonergan added the borough expects fewer and fewer new rateables from new properties as the borough is tapped out with space. "We're pretty much topped out in new home building," said Lonergan.

The mayor and council are also looking at additional permit fees for construction in the borough.

Chatham Zoning Officer Vincent DeNave advocated that the borough add more fees for various work being down in the borough that other neighborhood municipalities have added for the last two years.

Also at the meeting, the mayor and council said goodbye to Patrolman Robert C. Sweetin and Parking Enforcement Officer Nicolina Balsamo who retired this year. Balsamo has been with the department since January 1983 while Sweetin joined the force in December 1987.

Tony Britt also gave the mayor and council an update on the Relay for Life, a fundraiser for the American Cancer Society. A very popular event in other towns, it will be the first one in the borough. The relay is slated for June 1 and 2, but the local Relay for Life will have purple ribbons around the town before the event reminding residents to donate.