New Boro Budget Proposal Sets 1.35% Tax Hike

Madison residents would pay a real tax increase of 1.35 percent in 2011 under a revised municipal budget proposal for next year.

In his latest budget revision presented by borough chief financial officer Robert Kalafut to the borough council Monday night at Hartley Dodge Memorial, property taxes will rise to $13,478,711 from $12,731,190 in 2010.

It equates to an allowable increase of 5.87 percent, which translates to an effective increase of 1.35 percent on the total budget, which accounts for 23 percent of all borough spending. That equates to an increase of $145 per household on the average borough residence assessed at $408,000.

The new proposal also closes the remaining budget shortfall of $864,000, Kalafut said, thanks to $808,000 in municipal aid announced by the state last week, as well as a calculation of the tax levy with respect to capital improvement funds, reducing that figure by $500,000.

Jeannie Tsukamoto objected to the tax increase, and as did Don Links. “The hard reality is, we will have to make some cuts and reduce some services. I am not going to go along with the type of increase we are talking about right here. It will never get my vote,” Links said.

Both council president Vincent Esposito and member Sam Cerciello said that the borough needs to find ways to increase revenue rather than taxing residents. “We have to find ways to bring in money,” Cerciello said.

The council again discussed making changes to municipal services such as leaf and garbage collection that could save the borough as much as $100,000 annually.

In other news, the council agreed it would reconstitute the membership of the Passive Recreation Committee in order to draw up a master plan for the total 49 acres of the Madison Recreation Complex, development of which currently is limited to two artificial turf athletic fields on 10 acres.

Critics of the project have raised questions about the fields’ cost, planning process and environmental impact.

“Adjustments [to the plan] are being made based on input from the Shade Tree Commission, Environmental Commission, and others,” Mayor Mary-Anna Holden said. “The remaining 39 acres should be included in development plans.”

“We have the building blocks to start on development,” council member Robert Conley said.