Typical Hopatcong Municipal Property Taxes Would Rise $76 Under 2011 Proposed Budget

Municipal property taxes on an average Hopatcong home would rise $76 under the budget proposed at Tuesday night's mayor and council meeting at borough hall.

The borough is proposing a tax rate of 58 cents per $100 of assessed valuation, up from 55.6 cents in 2010. For the owner of a home valued at the borough average of $315,000, that means a municpal tax payment of $1,827, up from $1,751.

Those figures don't include county and school taxes—the latter of which make up the lion's share of taxes in Hopatcong. But town officials estimated a combined tax rate of $2.04 per $100 of assessed valuation (up from $1.981, and meaning a total tax payment of $6,426 for the average homeowner). The school and county budgets, however, have yet to be adopted—meaning that's only an approximation. 

The tax levy would increase less than 2 percent, not including several sorts of expenses allowed to be considered exceptions to the cap. With those included, the levy would rise 3.7 percent. Mayor Sylvia Petillo said the borough would actually be $85,000 under the 2-percent cap before the exceptions were factored in.

Accountant Paul Lerch of Lerch, Vinci & Higgins said at the meeting that the property tax increase was "a good effort in the current environment that we're in dealing with some extraneous costs that have come up."

The total proposed budget would be $15,152,351—or about $100,000 less than the 2010 adopted budget. 

But several costs would go up under the proposed budget. Insurance would cost the borough nearly $100,000 more than last year, and police services would rise by about the same amount. Several other expenses would rise by smaller dollar amounts. The borough expects cost savings in public works ($13,216) and solid waste ($32,400).

Police services would remain the biggest line item in the budget—about a fifth of all borough spending, at more than $3,100,000.

Mayor Sylvia Petillo said she was proud of the proposed budget.

"I stand just amazed myself," she said. "We did what we wanted to do, and we're not done. We will still continue to reshape and we will continue to reduce."

The budget discussion became heated when borough resident Randall Paulenich volunteered for public comment. Paulenich, who said he was "disgusted" with Hopatcong's tax increases over recent years, asked to form a citizens audit committee before tossing a packet of information onto the mayor's section of the dais.

"If you want to submit something, don't toss it at the mayor," Borough Administrator Catherine Steinel said. "That's highly inappropriate."

"Oh, and you're appropriate?" Paulenich said to Steinel.

"A lot more appropriate than you," Steinel said.

"I wish I had your money," Paulenich said, adding that Steinel makes $135,000 a year.

But Petillo quickly defended Steinel, saying Steinel doesn't make $135,000. Steinel, reached Wednesday, confirmed her contract includes raises that would have her at more than $135,000 by 2015, but for now her salary is $123,600.

"Don't even start that," Petillo said, "with your misrepresentation and your false numbers. Don't even start that. If you want to talk about numbers, we'll talk about correct numbers. [Steinel] does not make $135,000."

Borough resident Barbra Loring also commented, saying she thought the budget's insurance costs were relatively low.