Parsippany Budget With 4.28% Tax Increase Advances

PARSIPPANY, NJ — In a process that's been filled with disagreements and delays, Parsippany's Township Council unanimously voted to introduce a budget with a 4.28 percent tax increase.

Mayor Michael Soriano's administration's budget, which he turned in July 20, originally featured a 2.15 percent increase. But the proposal depended on tapping into the current fund appropriation reserves, which a majority of the council rejected last week.

A 4.28 percent increase would bring the average tax bill up by $202, according to CFO Juan Uribe.

The council and administration will discuss the budget during a special meeting at 6:30 p.m. Monday in the Municipal Building. The next Township Council meeting will take place the day after.

Last week, only Councilmember Paul Carifi Jr. voted in favor of the administration's resolution to use $1.1 million from the current fund appropriation reserves to reduce this year's tax burden. Soriano and Carifi have both suggested reducing the tax increase as much as possible this year as residents deal with the financial consequences of the pandemic.

"That was another reason I wanted to keep that money in there — so it would just lessen the hit, especially during COVID," Carifi said.

The three councilmembers who voted against the resolution last week — Emily Peterson, Janice McCarthy and Council President Michael dePierro — explained that they feel Parsippany must reduce some of the difficulties for future tax years as the township handles a $9 million revenue deficit.

"If you push everything into next year to keep the taxes lower this year, then you’re going to get a whopping-big increase next year," dePierro said. "And some of us on the council thought that, instead of letting all of the deficit run into 2022, we should absorb some of that deficit in 2021."

Council Vice President Loretta Gragnani, who was absent last week, commended the council for its decision.

A few residents pleaded to officials to reduce the tax increase. But councilmembers who voted against the use of the $1.1 million reserves argued that the town must address its deficit immediately.

"We’ll have to make hard decisions in 2022 and 2023 and probably beyond to put the town on a viable financial path and begin to address that $9 million deficit," McCarthy said. "Efforts to recover need to start immediately and not be put off another year."

Even Carifi, who wanted to reduce the tax increase this year, said the budgetary process will require difficult decisions in years to come.

"I would urge the administration to immediately start thinking about next year," he said. "Some of the things I’ve proposed — hiring freezes — you have to figure out ways to do more with less."

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