No Municipal Tax Hike If Montclair Budget Passes, Officials Say

MONTCLAIR, NJ — Montclair homeowners will have good news coming their way on the tax front if the proposed 2019 municipal budget passes muster.

On Tuesday, Montclair town officials released a detailed report about the still-in-development, $91.11 million municipal budget. Chief among the highlights was the following statement: “Montclair Township’s 2019 introduced municipal budget will have NO tax increase.”

If the budget is adopted in its current form, the municipal tax rate will remain at $0.783. This means that a Montclair home assessed at $600,000 will have the same $4,698 municipal tax bill as it did last year, officials said.

Montclair property owners must pay municipal taxes, as well as school and county taxes. See the township’s proposed municipal budget here.

Here are some of the factors that may help to prevent a tax hike, according to the township:

“Many New Jersey municipalities find it necessary to increase annual taxes at the 2% state-mandated cap because of growing healthcare and other benefit costs. Through aggressive cost-cutting and smart fiscal decisions, Montclair kept its tax rate flat at 0%. Moreover, the Council Economic Development Committee – which comprises Deputy Mayor Sean Spiller, Councilwoman Renee Baskerville and Councilwoman Robin Schlager – helped add $20 million in rateables in 2018 which contributed to a lower tax rate in 2019.”

While the proposed budget keeps taxes level, it also allows for some extra expenses, such as a $6.9 million capital bond ordinance that would fund about 10 miles of road paving and curbing, park renovations and equipment purchases in 2019.

In addition, the budget includes a municipal debt paydown of $7.8 million. Since 2012, the township has reduced its debt by $57 million, bringing gross outstanding debt down from $223 million to $166 million – a drop of more than 25%, officials said.

That’s a big deal, according to township financial advisor Bob Benecke.

“Credit rating companies like Standard & Poor’s especially hone in on budget flexibility and liquidity issues,” Benecke said. “This is one reason why the township was able to obtain – and maintain – its AAA rating.”

• See related article: Montclair's AAA Bond Rating Is Huge Leap For Town

1st Ward Councilman William Hurlock, a member of the finance committee, said that it was “quite an achievement” that the township is proposing a zero municipal tax rate increase, while at the same time investing in long-neglected infrastructure needs and reducing overall debt.

“This year’s operating and capital budgets are a continuation of our overall focus of improving the town’s infrastructure while strengthening its financial condition,” Mayor Robert Jackson said.

WHERE DOES THE MONEY GO?

According to town officials, here’s how the proposed budget will be spent (see the town's chart below):

“Public safety is allocated 30 % of total tax dollars (police and fire operations); 15% goes to health and liability insurance, reserves for retiree payouts and uncollected taxes; 9% goes toward employee pension costs. Municipal debt service accounts for 11 % of tax dollars and school debt service accounts for 9% (Montclair is a Type 1 school district which means the Township is required to service school debt).”

Officials continued:

“Public works receives 10%, while 9% goes to all other departments including health, recreation, legal, finance, information technology, human resources, planning and zoning, and the Township Manager’s office. The public library receives 4% and 2% goes toward utility costs such as electricity, gas, telephone, etc.”

The biggest line item increase in the 2019 budget is a retroactive pension increase of nearly $1.1 million for police and fire pensions, Montclair officials stated.

"This increase is a result of lengthy negotiations and state pension division processing delays of contractual increases from 2016 through 2018," officials said. "The township is using $2.3 million of its fund balance to offset one-time costs like these. At the end of 2018, the township holds a strong fund balance reserve of $14 million, reflecting a 180% increase from 2012."

Montclair officials provided the below information about the proposed budget.

PUBLIC SAFETY

In order to maintain the optimal level of public safety staff, this year’s proposed budget provides for the replacement of all firefighters and police officers who will retire in 2019. The number of school crossing guards will increase to 60 (currently at 50), officials said.

According to municipal officials, the fire department acquired two new engines this year for a total cost of $1 million, further updating its fleet – the department replaced a ladder truck in 2017. Three of the township’s five apparatus have now been replaced. The second ladder truck will be replaced in 2020 and the third engine will be replaced by 2021. Funding for firefighter training continues in 2019.

Meanwhile, the police department budget includes $112,000 allocated for software licenses alone, officials said.

Touting the MPD’s recent accreditation from the New Jersey Association of Chiefs of Police, officials said that “training necessary to keep the department at the level required for accreditation status is funded in the 2019 budget.”

• See related article: Montclair Police Chief Taking Pride In PD's New Accreditation

According to town officials, capital funding is provided in the proposed budget for the acquisition of police vehicles, Segways, traffic control apparatus and other equipment required for public safety and community engagement. The township will also purchase and install additional rectangular rapid flashing beacons to improve pedestrian safety at intersections.

Upgrades are also planned for the Montclair Ambulance Unit (MAU), officials said. Under the proposed budget, the township will replace the oldest ambulance in the MAU fleet at a cost of $106,000.

“There is a continuous need to replace ambulances,” said Councilor-at-Large Rich McMahon, who serves on the finance committee alongside Hurlock and Jackson.

“As I understand, they generally have a service life of five to seven years,” McMahon said. “Like with other public safety apparatus, it’s important to have the MAU fleet on a replacement schedule that ensures they are in optimal condition for the safety of the public and the EMTs.”

TECHNOLOGY

Montclair made significant investments in technology upgrades in “nearly all areas of township operations” in 2018, officials said.

According to a municipal news release:

• “The township network was completely separated from that of the Board of Education to ensure the security and privacy of student records and law enforcement data. The Office of Information Technology is currently implementing new system infrastructure and new voice over internet technology (VoIP).”
• “Video cameras were installed in parking decks, streets and township swimming pools last year. Cameras were also installed at the Bay Street Parking Deck and will be installed in remaining train stations this year.”
• “The 2019 budget is also seeing new initiatives, such as AI-powered video analytics software for video cameras to provide real-time analysis for active and post-event investigations (annual subscription $38,500). This technology will significantly enhance speed, accuracy and coordination of response among police, fire and ambulance units.”
• “The township is now partnering with the First Responder Network Authority (FirstNet), a nationwide, broadband network that equips first responders to save lives and protect communities.”
• “New records management software is being implemented for the fire department. Police implementation took place last year. The software will enable first responders to access more comprehensive information much more quickly.”

PUBLIC WORKS, CODE ENFORCEMENT, BUILDINGS

Since 2013, the Montclair Department of Community Services has paved and curbed 44.62 miles of roadway. The 2019 budget provides funding for approximately 10 additional miles of paving and curbing throughout the township, officials stated.

Investments in parks and playgrounds will continue to be a priority – 2019 will see continued work in Mountainside and Yantacaw Brook parks, along with new improvements to Tuers Park and playground. The township is also seeking Green Acres grants to upgrade several other parks and playgrounds throughout town, officials said.

Overall, the department would see a half-million dollar increase in its budget, which will include the addition of a full-time employee in the uniform construction code division to “further accelerate permitting operations,” officials said.

According to municipal officials, the department’s budget increases are driven mainly by trash and recycling expenses, including increased solid waste tipping fees. In addition, the township installed additional Bigbelly smart bins in all the business districts towards the end of 2018, which require greater annual maintenance fees.

• See related article: Montclair Embracing Solar-Powered Trash Bins

The 2019 budget includes funding to maintain $1 million dollars in reserve for storm recovery efforts, officials said.

Montclair officials said the Code Enforcement Division have identified 44 intersections for pre-treating and snow-clearing to enhance pedestrian safety. Additional funding is provided for treating and clearing operations at these intersections and at the perimeters of the township’s six train stations.

In addition, improvements at Mountainside Park will continue this year, with nearly $600,000 to be spent on improving the park’s ball fields, officials said.

HEALTH, NURSING, ANIMAL SHELTER

The Montclair Health Department is “aggressively involved” in the Childhood Lead Elimination program, and the proposed budget would add two, part-time nurses to help with screening, case management and environmental investigation efforts, officials said.

The town’s animal shelter will also see a boost under the proposed budget, officials said:

“The Montclair Animal Shelter became fully functional in June of 2018 after a fire devastated the building in April of 2016. Significant investments are being made to make the shelter a serene and beautiful place. Its focus is to maintain healthy and nurturing living spaces for the animals and create an inviting place for visitors. Funding in 2019 was increased to include an additional full-time Animal Control Officer, along with two additional part-time kennel attendants.”

• See related article: Rehab Complete At Montclair Animal Shelter After Devastating Fire

UTILITIES

According to officials, $4 million has been set aside to replace slip lines and aging water and sewer mains, and to refurbish pumps. Increased staffing will oversee these initiatives and enhance overall operations of all three divisions: water, sewer and parking.

Funding is also earmarked to purchase “new trucks and other equipment,” officials said.

The 2019 budget also includes funding for license plate recognition technology for Parking Utility permit enforcement, officials stated.

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