Council Weighs Options for Open Space Tax Extension

The borough council is poised to draft an ordinance placing an extension of the Open Space tax on the ballot for a referendum by voters in November, but the specifics of the initiative remain to be worked out by the council in the coming weeks.

First approved by voters in 2003, the tax amounting to a cent on every $100 of a homeowner’s assessed property value has funded the acquisition of two borough properties, the abandoned “Pleasureland” property as well as a tract off Breakneck Road. The fund was given a five-year sunset clause, and reapproved by voters in 2008.

One of the considerations of the council in putting a renewal on the 2013 ballot, put forth by Councilman Chris Visconti at a meeting Wednesday night, would be to remove the fund’s expiration and allow residents to vote on an open-ended extension of the fund.

“Basically instead of every five years going out for another referendum, we’d vote on a referendum and [it] would be in place until it is no longer useful,” he said, adding that voters would have the option to end the tax in the future.

A rationale for the open-ended fund, the borough’s chief financial officer James Mangin said, is that even if another five-year referendum were passed in November, in 2018 the borough would still have about $166,000 outstanding in payments on the properties already financed by the fund, assuming property values remain even.

Most of the fund is already committed to the outstanding $1.2 million owed on the two Open Space purchases, and without an extension of the tax that money would come out of the municipality’s regular operating budget.

“So that means in 2018, we’ll be in the same situation,” Mangin said.

Mangin said that in the 10 years since it has been in place, the average Oakland taxpayer has contributed $444 to the fund, which has been used to attract around $7 million in grants.

. The fund is also used for a $12,000 annual contract with the Ramapo Conservancy, a firm that helps the borough attract funding for open space purchases.

“Oakland is in a very unique position, which is different from other towns,” Councilwoman Karen Marcalus said at the meeting, expressing support for the referendum. “We’re in the Northern Highlands region—we have open space. Other towns around here don’t have open space.”

“I think we’d be foolish not to continue this,” she added.

Other considerations to changes in the ordinance may be the tax rate itself, and borough administrator Richard Kunze suggested that the council consider adding a provision allowing the body to tweak the rate, decreasing the levy should the borough’s needs change.

Visconti asked the council’s attorney to move forward with drafting an ordinance, a “working form” that would give the council flexibility in determining the specifics at a future meeting.

The deadline to file with the county to have the initiative on the ballot is in August, and the council will likely take up the discussion again at its June 26 meeting.