Debt, Federal Tax Policy Caused Mendham Township Fiscal Woes

MENDHAM TOWNSHIP-- Mendham Township is drowning in more than $9 million in debt, home values are plummeting, taxes are skyrocketing, and tax deductions have been slashed. A new white paper from the Democratic nominees for Mendham Township Committee relies on recently released statistics to demonstrate that a mixture of bad decisions from past township committees and recent changes in federal tax policy are responsible for these financial crises.

“Enough is enough for Mendham Township families. We plan to bring careful, thoughtful, and unbiased study to the issues facing our community,” Goswami said. “When you look at the evidence, it becomes clear where we have gone wrong, and how we must change course to right the ship.”

Among the white paper’s key findings:

• Township finances are highly dependent on property values and the local housing market.
• Mendham Township homes now sit on the market longer than homes in similar communities, despite the township having a very low crime rate and a top-rated school system.
• Among New Jersey towns with high-priced homes, Mendham Township is tied for the second longest number of days homes are on the market. In fact, homes are on the market for almost two times longer than some communities where median home prices are 25 to 30 percent higher.
• This stagnant real estate market has resulted in Mendham Township having the second biggest drop in home values, 10 percent, among New Jersey towns with the highest property values.
• Local taxes are not the cause of this issue. Indeed, property taxes are lower for a home in Mendham Township than similar homes across most of New Jersey. Moreover, compared to other communities with strong schools , our property tax increases over the last two years are amongst the smallest. In short, Township children receive some of the best educations in the state for a comparatively low tax burden.
• However, very real problems exist. Mendham Township’s municipal debt is among the highest in the state, because of the decisions of past administrations. This undermines our ability to make wise investments that would entice new residents for the future, and it alienates potential partners who would consider sharing services with the Township.
• Moreover, the cap on the State and Local Tax (SALT) deductions passed with the 2018 tax reform package dramatically changed the tax burden faced by Mendham Township families, increasing the federal tax bill for the average local family by $11,541. Thus, family budgets in New Jersey were reduced roughly $1,000 per month and the cap on SALT deductions trumped local property tax increases by a staggering 30 times. People are less likely to purchase expensive homes like those in Mendham Township when they can no longer benefit from this full deduction.

Saharko and Goswami do not believe the answer to these problems is over-development or shared services promises that have been made for a generation but just as quickly rejected by potential local partners.

“One group has been in power throughout this township’s history, and the results have left Mendham Township families with a lot of financial pain,” said Melissa Saharko. “It’s time that we turn to new leaders who will learn from the mistakes of the past and set us on a path to a brighter future.”

Melissa and Trishna have a detailed plan to attract 200 new families that would not otherwise have moved to the Township to move here in the next five years, including the creation of an all-volunteer committee to aggressively market Mendham Township. As a start, data demonstrating the combination of low taxes and top school rankings could be publicized to encourage real estate agents to bring buyers to Mendham first because of the combination of value and quality that our community represents.

To view the white paper, click the following link:
https://medium.com/@melissaformendhamtownship/a-detailed-examination-of-financial-issues-in-mendham-township-81c30008a6de?sk=6b57ef3c8b37fcd73c8bebacd4a7ec16