No Tax Increase In Proposed Montclair Municipal Budget: Mayor

MONTCLAIR, NJ — Montclair is on the cusp of achieving a local tax milestone, and the town’s mayor wants to “make sure it’s noted.”

On Wednesday, Mayor Robert Jackson announced the proposed 2020 municipal budget is ready to be introduced to the Town Council in February.

According to Jackson, the proposed spending plan won’t cause any increase to the municipal tax rate, which determines how much local property owners pay in taxes when added to the county and public school district budgets.

If it’s passed, the 2020 budget will be a significant landmark for Montclair, Jackson said.

“As you may recall, the township achieved a zero increase in 2019,” Jackson stated. “These back-to-back zero tax increases are a first in township history and I want to make sure that this milestone is noted.”

Jackson provided more background about the town’s recent tax history, including its struggles.

“Here’s a little more context,” the mayor wrote. “In the 15 years prior to this council, the average annual tax increase was 5 percent. The eight budgets delivered by this council average a little more than 1 percent annual increases. During this same period, average residential property values have increased by nearly 24 percent, moving from $507,000 to $627,000, while municipal taxes increased less than 10 percent.”

The “bottom line” is that the municipal tax rate dropped by 11.4 percent since 2012, Jackson said.

The mayor said:

“It’s also no secret that debt reduction has been at the forefront of council initiatives. In 2012, when this council took office, the township was saddled with $223 million in debt and a pedestrian AA- credit rating. Our financial discipline and vigilance paid off in 2016 when our credit rating was raised to AAA, the highest rating possible. Montclair joined the ranks of the top 5 percent of New Jersey municipalities with this distinction. The 2020 budget will continue the momentum and debt will be reduced to approximately $163 million, a staggering $60 million or 27 percent reduction from our 2012 balance.”

Jackson continued:

“I hasten to add that we weren’t standing still while reducing debt; a ton of projects were completed and investments made simultaneously. We’ll go into more detail next month, but a modernized municipal fleet, 60+ miles of paving and curbing, miles of utility main replacement, and park renovations are all completed.”

Jackson offered kudos to the entire council for the town’s improved financial outlook, but also commended Financial Consultant Robert Benecke (Principal, Benecke Economics), CFO Padmaja Rao, Deputy Township Manager Brian Scantlebury, Township Manager Timothy Stafford, and Deputy Mayor Rich McMahon and Councilor Bill Hurlock who serve with him on the Council Finance Committee.

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