UPDATED: Madison Council Approves Introduction of Budget With 3.51% Property Tax Hike

The Madison Borough Council on Monday night voted unanimously to introduce the latest proposal for the municipal budget in order to meet a March 14 submission deadline set by the state finance committee.

The new proposal offers no reduction in essential services and an allowable property tax increase of 3.51 percent compared to 2010 municipal property taxes.

The state permits the tax levy to exceed the 2 percent cap to account for state-mandated health care and pension expenses of $238,081. There is also an increase of $209,417 for all other budget line items, including contractually obligated increases.

Council member Jeannie Tsukamoto pointed out that the yes vote does not indicate council members' approval of the tax increase, only that the budget paperwork is ready to go to the state for preliminary inspection through April 11. The borough has 28 days from Monday to amend any part of the budget, by April 26. "The council will continue to look for more savings in the budget," Tsukamoto said. "I do not support a 3.51% tax increase."

The latest budget revision presented by borough chief financial officer Robert Kalafut during the meeting at proposes a tax increase of $447,498, or 1.98 percent, as part of the total municipal budget of $24,438,696.

That represents a tax reduction of more than $300,000 from previous budget proposals.

The tax increase works out to $7.56 per month, or $90.72 per year, for the average Madison home assessed at $410,000.

Kalafut noted that the budget sets no increases in non-union municipal salaries for the second year in a row, and no funding for capital projects.

“We will see over $200,000 in savings this year as the result of municipal staff reductions," and like savings generated by the new joint court’s operations,” Kalafut said.

A further $250,000 was saved from a new health insurance contract negotiated with the and which covers all non-union employees.

Also, $300,000 in Open Space funds will no longer be used for field maintenance.

The new proposal retains a subsidy for the .

Assistant Borough Administrator Jim Burnet said Madison will save $40,000 shifting to weekly garbage pick-up as of Sept. 1, and $30,000 on curbside leaf pick-up yet to be bid out.