Montclair Will Save On Garbage Fees, County Says: Here’s Why

MONTCLAIR, NJ — After 19 years, the Essex County Utilities Authority (ECUA) has finally climbed out of a financial hole that once topped more than $100 million. And it is good news for the 22 towns and cities of Essex County, including Montclair, officials announced Wednesday.

The ECUA – which is responsible for several garbage, recycling and disposal-related duties in the county – had about $102.81 million of debt in 2003, according to Essex County Executive Joseph DiVincenzo Jr. See the agency’s latest budget here, and audit here.

Here’s how the ECUA reached “debt-free status,” his office said:

“Among the budgetary reforms initiated were reducing the number of ECUA employees to less than 10 people. [The county executive] and the ECUA also negotiated favorable tipping fees (the cost to dispose of household waste) paid by municipalities with some of the revenue being used to pay off the debt. In addition, the ECUA took advantage of favorable interest rates and refinanced outstanding debt at lower rates in 2006, 2009 and 2016.”

Why should Montclair residents care? The $3.37 million in annual savings generated from not having to pay the debt will be passed forward to Essex County’s 22 municipalities through a reduction in garbage tipping fees, officials said. In Montclair, that is expected to add up to about $134,398 every year.

DiVincenzo’s office provided the following breakdown of the expected savings for each town and city:

“Paying off the ECUA’s debt has been a long-range goal of mine since I was first elected, and I am so excited that the day of the ECUA being debt-free has finally come,” DiVincenzo said.

“Getting Essex County’s budget in order and strengthening our financial standing are things I take very seriously, and today’s announcement shows that our austere and conservative budget initiatives are paying off,” DiVincenzo said.

The county executive said the milestone will also mean “significant savings” for solid waste disposal costs in each town and city.

“Our municipalities are feeling the pinch because of inflation, rising costs and growing expenses and these savings will definitely help during this critical time,” DiVincenzo said.

• See related article: Rallies, Outrage In Essex County Over NJ Health Care Hikes
• See related article: Big Gap Between Highest, Lowest Property Tax In Essex County
• See related article: Tax Gap In Essex County: Many Wealthier Towns Pay Lower Rates

Montclair has the 11th highest average property taxes in New Jersey, according to the most recent report from the state Department of Community Affairs.

Every year, the department releases property tax statistics for each town and city in New Jersey, including Montclair. There were 565 municipalities on this year's list. Read More: See How Every NJ Towns Ranks For Property Taxes On New List

The average residential property tax in Montclair in 2021 was $20,320 for a home valued at $628,952. That was a $357 increase from 2020 – a difference of 1.79 percent.

Property taxes in New Jersey are made up of three parts: school, municipal and county. Here's how that broke down in Montclair last year:

• School – 57.2%
• Municipal – 25.9%
• County – 16.9%

Catch up with a few of our latest budget stories in Montclair below.

• Read More: Montclair Council Approves Town Budget, 2 Percent Tax Hike
• Read More: Montclair School Board Approves Budget For 2022-23
• Read More: Q&A Session Held For $188M Montclair School Bond Referendum: Video
• Read More: Montclair School Referendum: How Much Would It Raise My Taxes?

Send local news tips and correction requests to eric.kiefer@patch.com. Learn more about advertising on Patch here. Find out how to post announcements or events to your local Patch site. Don’t forget to visit the Patch Montclair Facebook page.