LTTE: Rebuttal To Former Mayor Neil Henry

Dear Mendham Chester Patch,

I appreciate the Patch giving candidates a platform to share their views and the opportunity to respond to former Mayor Neil Henry’s comments.

While I respect his past service, Mendham residents deserve a clear picture of our current strong financial position and the progress we’ve made.

Operating Fund Balance (Surplus) Significantly Strengthened:

Under our administration, Mendham’s operating surplus increased from $2.1 million in 2018 to $4.41 million in 2025. (Source: Council Adopted Annual Audits.)

This is not reckless use of surplus — it represents fiscal responsibility and good fiscal management. At the start of each budget year, municipalities need to utilize some of their
surplus for cash flow until tax and other revenues come in and surplus is then replenished.

We have built a stronger surplus position than we inherited, providing a buffer against rising costs like insurance, pensions, and infrastructure needs. Responsible budgeting means using available tools to keep taxes affordable while maintaining services and sustaining a healthy surplus.

Better Debt Management:

From 2000 to 2006 when Neil Henry was on Council, the Borough’s debt increased by 208%. By 2007, the Borough’s Operating Fund debt stood at $5,576,174. During Neil Henry’s tenure as Mayor from 2007 to 2018, debt service consumed an average of $616,611 annually — about 8% of the operating budget, and in some years as high as 9.4%.

As Mayor, I have worked hard to minimize the borough debt. Debt payments today are about 1% of the operating fund budget.

Salary Increases Modest and Controlled:

The Salaries & Wages operating fund expense increased 1.90% from 2025 to 2026.

• $3,484,907 in 2025 to $3,551,182 in 2026.
• Police account for 50% of Salaries and Wages
  
  This modest rise covers contractual increases, standard cost-of-living adjustments for employees, and accounts for any new hires or position changes — all while staying well below typical inflation and national private-sector averages (around 3.5%).
  
  We have prioritized employee retention and fair compensation without burdening taxpayers. Many increases are driven by state-mandated pension and health benefit costs outside our direct control. Through efficiencies and shared services, we have minimized the impact on
  taxes.

Addressing the Claim on Elected Officials’ Salaries:

Mr. Henry has claimed that the Mayor and council salaries have increased 74% since 2021. This is inaccurate. According to official borough Salary & Wage Resolutions:

These are part-time elected positions with modest, incremental adjustments over time to reflect basic cost-of-living changes — nowhere near a 74% jump. These figures remain very low compared to many other New Jersey municipalities and have been set transparently through
public resolutions approved by Council.

On Development and Vision:

We share the goal of protecting Mendham’s character. Our team has actively managed state-mandated affordable housing requirements, pursued open space preservation, and invested in infrastructure upgrades through aggressive grant funding. Since 2019, we have secured over $5.7 million in grants for roads, parks, trails, historic preservation, and facility improvements — reducing the direct burden on taxpayers.

- Seventeen years ago, in 2009, under then-Mayor Henry’s leadership, the Borough failed to join the Highlands, which would have protected the Borough from excessive high
density housing overdevelopment. The Borough in 2009 had accepted a $50,000 Highlands Planning Grant and completed the required full plan — but did not complete the process to join.

- As Mayor, it has been a priority for the Borough to join the Highlands. In 2025, we secured a new Highlands Planning Grant, completed and submitted the new plan, and finalized the Borough’s Highlands designation in January of 2026 – helping to protect our community from excessive high-density housing overdevelopment.

Taxes and Efficiency:

We are committed to fiscal responsibility. Tax increases have been held in check despite inflation and state mandates. We continue to explore shared services, new revenue opportunities, grants, and operational efficiencies. We have implemented a modern integrated accounting system, electronic payments, updated the Borough website, added Nixle notifications, and have improved transparency and service to our residents.

Mendham is in a solid position today thanks to teamwork between the Mayor, Council, staff, and volunteers.

As a lifelong resident, small business owner, and your Mayor, I remain focused on practical results: safer roads, better parks, strong public safety, and preserving our small-town feel while
preparing for the future.

I humbly ask for your support on June 2nd to keep Mendham moving forward with proven, steady leadership.

— Mayor James Kelly