Ramsey Approves 1.8% Tax Increase

After a technicality prevented the Ramsey borough council from passing its 2013 municipal budget last month, the group officially passed the $22.8 million spending plan Wednesday night.

The budget, which sets out municipal expenditures and anticipated revenues for the year, calls for a tax increase of 1.89% over last year.

The percentage translates to an about $39 increase for the average homeowner in Ramsey.

The total operating cost of the borough has actually gone down slightly since last year, thanks mostly to the purchase of an Airmont Rd. property for special needs housing last year, which was reimbursed by Affordable Housing funds, officials said at past hearings.

A reevaluation of Verizon’s stake in the borough that led to a significant tax break, increasing healthcare costs for municipal employees, a reduction in funding from the library and an increase in tax appeals are all contributing to the 1.89% increase, they said.

The council had planned to pass the budget at a meeting last month, but was stopped by a state request for a few wording changes in the budget document.

The state requested the town change the wording on two of the line items in the budget, and re-advertise its public hearing and adoption. The changes had no impact on the numbers, or the proposed tax increase, officials said.

Earlier this year, voters passed a school budget calling for a 0.2% tax increase, or about $14.87 for the average homeowner. The boards that put together the two budgets operate autonomously, but both are subject to a state-mandated 2% tax levy cap.

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