Tax Increase Could Double As Parsippany Budget Dispute Drags On

PARSIPPANY, NJ — Parsippany's taxes will increase by nearly 5 percent, instead of the proposed 2.15 percent, according to Mayor Michael Soriano's campaign. The campaign news release blamed councilmembers for voting down a resolution to use money left over from 2020. But councilmembers who voted no argued that the measure would worsen Parsippany's anticipated budgetary crises in the future.

"The republican-lead (sic) Town Council voted to increase taxes against Mayor Michael Soriano’s recommendation," Soriano's campaign wrote. "A State approved resolution would have allowed the town to use money left over from 2020 to balance the budget for this year, but the Council rejected that proposal."

Two Democratic councilmembers (Janice McCarthy and Emily Peterson) and one Republican (Council President Michael dePierro) voted against the resolution, which would have authorized the cancelation of unexpended balances and unused reserves, worth $1.1 million. Paul Carifi Jr., a Republican, supported the measure.

“We are incredibly disappointed by the Town Council’s decision to reject Mayor Soriano’s proposal and put more financial burden on Parsippany Residents,” said Cori Herbig, a Democratic candidate for Township Council. “We need leaders in Parsippany who aren’t afraid to bring creative ideas to the table in order to keep Parsippany moving forward.”

Parsippany must navigate a $9 million deficit. Soriano submitted a budget July 20 to the Township Council, which is currently reviewing it. The council will hold a special meeting for a public hearing and introduction of the budget at 5 p.m. Monday, according to the township.

The proposed budget included a 2.15 percent tax increase and didn't take money from the water or sewer funds. But the administration instead planned to explore canceling appropriation reserves. The administration put forth a resolution for just that Tuesday, but council voted against it.

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"You can have a financially balanced budget, but that doesn’t mean you have a sustainable budget," McCarthy said. "The sustainability of this budget is very questionable, and it’s not just the $1.1 million."

The township had used the water-sewer surplus to balance previous budgets. But the township unanimously voted to raise the rates 39 percent last year on water-sewer payments — an average of $150 per home — because the fund balance risked depletion. The township hadn't raised its rates since 2006.

Peterson asked how the measure would be different from taking money from the water and sewer funds.

"This is money that we appropriated last year in the budget," said Township Business Administrator Fred Carr. "We did not use it last year. It would roll over next year in January’s fund balance. What we’re doing is we’re just using it a year early."

But dePierro compared the measure to the township's decisions to keep the water-sewer rates stagnant for more than a decade, which he said was a mistake for which he was partially responsible.

dePierro said he didn't want to make the same "mistake" twice.

"In my estimation in the budget, I see overestimated revenue, underestimated expenses and then kicking the can down the road with this $1.1 million," dePierro said. "This is going to do the same thing to us. Next year, we’re going to have a big bubble, and it’s going to burst. If we pay down a piece of it now, it’ll be a smaller bubble next year."

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