Livingston Introduces Budget with 5.7% Tax Increase

At their meeting Monday night, the Livingston Town Council introduced their 2013 municipal budget, which includes a tax increase to the average homeowner of 5.7% or $140.25.

Township Manager Michele Meade said in a presentation of the proposed budget that this year’s tax increase is driven primarily by a tax delinquency from one taxpayer, the East Orange Water Commission (EOWC). The EOWC owes Livingston $2,403,063. The delinquency is so significant, according to Meade, that it alone will cost the average homeowner $101.51, a tax increase of 4.14%.

The budget will be voted on May 13.

“While the 5.7% increase is over the 2% levy cap, the increase is permitted by the state because the township has a cap bank made up of unused levy cap amounts from prior years,” said Meade. The cap bank will provide $2.38 million for payment of tax appeal refunds and “makes the adjustments that are necessary for us to continue to provide quality services throughout 2013 and into the future.”

“There isn’t a spending problem in Livingston,” said Meade, “there is a revenue problem.” She noted that operating costs in the township have increased .81%, a portion which costs the average homeowner just under $20.

Furthermore, tax appeals in 2012 have decreased the township’s number of taxable properties. This has been an ongoing issue since 2009, according to Meade, but administration has eliminated the impact of tax appeals this year by holding both a traditional tax sale and an accelerated tax sale to alleviate part of the discrepancy.

Livingston is in litigation over the EOWC’s tax delinquency, however, Meade indicated the township has little control over the pace with which the issue is resolved; that is up to the courts.

Meade said that without the EOWC tax delinquency, the tax increase for the average Livingston homeowner would have been just $38.74, or 1.56%.

“It seems like all my budgets have been challenging since 2008,” said Mayor Rudy Fernandez. “This one wasn’t so much challenging as frustrating. We’re using all our legal resources… Michelle and [Director of Finance William Nadolny] have done great work for us on this budget.”

Deputy Mayor Michael Rieber agreed, saying, “[The council was] at meetings till midnight many nights trying to figure out [how to accomplish this budget].”

Meade also pointed out the Livingston has put in place a number of money-saving programs over the past year, including reducing energy costs by $50,000, lowering recycling costs by $60,000 and decreasing legal expenses by $107,000. Salary and benefits will increase by 1.4% in 2013. Even so, there is an increase in operating costs from 2012 by $271,498.

In spite of the increases, the most significant of which is out of the township’s control, Meade said, “The 2013 budget complies with all financial policies established in [the 2010 long term fiscal plan].”