W. Caldwell's Amended Budget Poses 2.1% Hike

Pushed by the Essex County Division of Taxation and the New Jersey Department of Community Affairs, West Caldwell's governing body plans to vote on adopting the 2010 municipal budget following a special public hearing next week.

Thomas Kane, the town's acting chief financial officer, presented during Tuesday night's conference meeting amendments that have been made to the budget since its introduction on March 30.

According to Kane, the county sent a notice to the township, requesting the budget be adopted by the middle of the month, while the state sent a similar directive with a deadline of Sept. 24.

As a result, the governing body will hold a special public hearing regarding the amendments to the budget before voting on its adoption next Tuesday night at 7 p.m.

West Caldwell's council, minus Councilman Dominick Aiello who was absent, unanimously approved the amendments following Kane's presentation.

Initially introduced in March at , the budget has since been reduced to $18,497,723.97 with an approximately 2.1 percent tax hike, according to Jock Watkins, the town's clerk and acting administrator.

After former Town Administrator Andy Katz made initial adjustments, the budget was presented in May, but the governing body voted to postpone its adoption to further examine extraordinary aid opportunities.

"The budget has been modified since it was introduced," Kane said. "We incorporated some of the recommendations of the former administrator."

According to Kane, among the changes were grant adjustments. While the Clean Communities Program of $17,776.85 and Body Armor Grant of $1,208.12 have already been included as miscellaneous revenue, the Developmental Disabilities Grant from the New Jersey Department of Human Services of $16,390 will be added to the budget after its adoption, Kane said.

"That grant is not in the budget document," he said. "What I'm recommending is that we proceed, because of the time constraints, with the adoption of the budget and we can accept the grant through a Chapter 159. Chapter 159 enables you to add a revenue line item and the balancing appropriation line item to the budget after it's adopted."

Salaries and wages under the streets and roads category were reduced from $257,700 in the introduced budget to $227,200, due mostly to the retirement of former Director of Public Works Bill Frint. However, "other expenses" under this category increased from $53,800 to $68,800 so Frint can remain as a part-time consultant, Kane said.

Under the general government category, administrative and executive salaries and wages were reduced from $144,000 to $133,440, but "other expenses" increased from $52,000 and $102,000.

According to Accounting Supervisor Althea Headley, financial administration was initially at $135,000, reduced to $111,500 when the budget was introduced and then trimmed to the current line amount of $82,875. However, "other expenses" increased from $46,470 to $101,970.

"That involved a change in personnel," Kane said. "My coming on board with the municipal team. There was money in salary and wages for the CFO and we've removed that money and put it in 'other expenses' to accommodate the method of payment."

Total sanitation costs were reduced from $632,210 to $582,210, while recreation and education was cut from $963,240 to $953,240.

Salaries and wages under the water utility category dropped from $572,490 to $517,920, while "other expenses" increased from $1,357,300 to $1,411,870.

Swimming pool utility salaries and wages were reduced from $271,200 to $258,800, while "other expenses" rose from $221,700 to $234,100.

"In going through the budget and the various amendments to the budget, various line items have been changed," Councilman Richard Otterbein said to Kane. "I presume the line-item changes are the result of your analysis of where we are currently today and where we expect to be within the budget and maintain the 2 percent change.

"I presume that these cuts have all gone through the various department heads, and they're comfortable with them?"

According to Kane, the majority of the reductions came under the "unclassified" category where expenses dropped from $1,094,300 to $1,007,300. Electricity costs were reduced from $112,500 to $97,500, street lighting was cut from $142,000 to $117,000 and solid waste disposal costs went from $550,000 to $500,000.

"Most of the cuts were done in a category called 'unclassified.' Your electricity bills, your payment of garbage disposal, telephone bills and things of that nature," Kane said. "There's only one operating department that I cut, and yes, that department head was advised."

While West Caldwell's new contract with Caldwell for police dispatch services resulted in an increase from $3,550,405 to $3,576,963 for total public safety costs, the new sewer agreement with Caldwell will increase West Caldwell's surplus for next year.

"The contract with Caldwell is in the 'items excluded' from the cap calculations. Cuts were made within the cap calculations, so I could not reduce those and make it work in our favor," Kane said. "What I did do was talk to the auditor and what we can do throughout the course of the year is cancel that service from that line item and put it into surplus for next year."

West Caldwell, which had owed Caldwell back payments for sewer usage, reached a settlement that will lower the usage rate, Mayor Joseph Tempesta said.

"We had a great painstaking settlement negotiation with them that resulted in a significant lowering in the rate," the mayor said. "What we did not know was at the end of the day when they got their arms around their budget and their capital improvements and that portion of the bill, etcetera, we really didn't know where that was going to shake out. It shook out a little more in our favor."