The Township Budget: Anyone Have A Calculator?

It seemed simple enough. Township Manager Marc Dashield introduced a budget at a council meeting on Tuesday night that that would result in a 1.3 percent overall increase in property taxes for Montclair residents.

He noted there would be a lower than previously predicted 4.3 percent hike in the municipal portion of tax bills.

A public hearing on the 2011 $70.5 million budget is set for April 19.

But the nonpartisan Concerned Citizens of Montclair group, which is seeking no tax increase, said the math doesn't add up.

Here are the numbers, as CCM sees them:

4.3% municipal increase (25% of total) =  .043 x .25  = .01075

2.5% county increase (17% of total) = .025 x .17 = .00425

1.4% education decrease (58% of total)  =  - .014 x .58 = -.00812

Members of the CCM say that if you add it all up one gets close to 0.68% (.01075 + .00425 - .00812  = .00688 = 068%), not the 1.3% Dashield talked about on Tuesday night.

"If the municipal increase is 7%, then we get to the 1.3% overall that [Dashield] is talking about," the group said. "So is the municipal increase 4.3% or 7%?"

Mayor Jerry Fried said he doesn't understand the confusion.

He explained that the current budget has a total tax impact on homeowners of 1.3%.

"Their taxes would go up 1.3%," he said. "If their taxes were $10,000 last year, they would be $10,130 this year.

"Maybe the reason why CCM is confused is because they don't understand the effect of tax appeals," he said. "If your taxes were $10,000 last year and tax appeals shrunk the value of all town properties by, say, 5%, your taxes would have to go up by 5% to $10,500 just to make up for the tax appeals."

Fried emphasized that the municipal portion of the budget represents about 26 percent of your tax bill. The school budget represents about 58 percent of your bill. The share of your taxes that goes to Essex County is about 16 percent.

"It's crucial to remember that we must credit taxpayers who have successfully appealed their taxes ... over 2 million dollars in 'spending' in 2011 and that 58 percent of that 'spending' is, in fact, school tax," Fried said earlier this month. "So, our municipal tax increase is going to be mostly paying back school and other taxes previously collected. It isn't simple to explain.

"Also, I think it's important to look at the policy decisions that this council has made in 2010-11 with our new township manager" such as significantly downsizing over 25 jobs in 2010 with more coming in 2011, he added.