By Alexis Tarrazi / Senior Reporter

CARLSTADT (Nov. 12, 2009, 5:15 p.m.) — Despite mixed reports on the projected tax increase and a delay in finalizing the budget until after the 2009 elections, the Carlstadt Borough Council unanimously approved Thursday, Nov. 5 a 14-percent tax levy increase to residents.

The $16.3 million budget breaks down to an average taxpayer owning a home assessed at $100,000 seeing an increase of $140 per year, or $12 per month, according to Chief Financial Officer Domenick Giancaspro.

The state only allows a municipality to raise its tax levy 4 percent, unless the town applies for a cap waiver. Joseph Crifasi, councilman and finance chairman, said that the borough was allowed to exceed the 4-percent cap by 10 percent this year due to a revenue shortfall.

Crifasi said the shortage is linked to receiving no extraordinary aid, less state aid, less taxes collected and less surplus in the coffers.

“This year is tough love … it is a one-year gimmick,” said Crifasi in a phone interview. “Next year we will go back to everything being in a perfect world.”

The borough received $45,000 less than last year’s $1.3 million in state aid and didn’t receive any discretionary/extraordinary aid, despite its request for $2 million.

The borough was also short $850,000 in taxes. A tax sale was held in June, with $650,000 recouped. The shortage in tax collection funds decreased the borough’s surplus, which has now dipped to $150,000 after Giancaspro used $100,000 to help lower the budget.

Officials also attribute the increase to an increase of $500,000 in medical costs for borough employees, $200,000 in sewage, $400,000 for contractual salary and wage increases, $90,000 for a Cop Fast Program and $100,000 in construction fees. Though the budget still ended with a double-digit increase in the tax levy, it could have been worse. In April, the council proposed a possible 22-percent increase.

The difference from April to November was the council’s efforts to initiate furloughs, facilitate retirements in administrative positions in the police department, cut medical costs, cut department budgets and eliminate expenses for conventions, dinners and Christmas parties.

However, Crifasi noted that the $600,000 savings from the police department would probably not affect the budget until 2010.

The mayor and council confirmed the 14-percent increase is for the municipal portion of the tax bill and does not include the school, state or county taxes. The school taxes increased 4.8 percent this year, as The Leader reported in April.

The all-Republican council waited until right after the 2009 elections to pass the budget. But Crifasi said there was no other reason it was delayed until Nov. 5 other than that the borough was waiting for state approval.

“Truthfully what makes it such a long process is the procedure to get the budget approved,” Crifasi said. “It’s not like going to the supermarket and checking out at the register. … In September we sent it to the New Jersey Local Finance Board and the Bergen County Tax Board for state approval and didn’t get it approved until about two weeks ago.”

Moving forward

To speed up the budget approval next year, the council vowed to wrap up the process much earlier in 2010.

“We always wait for the state to help us out ... with grants, aid and so forth,” Crifasi said. “But by stalling, it winds up costing us money. So we have already made a decision to be independent and to proceed on our own next year.”

By waiting until November to pass the 2009 municipal budget, Crifasi said the borough lost $40,000 in interest.

“The unfortunate part about it is, critics may say we wasted money and time by waiting,” Crifasi continued. “But on the other hand, other towns got money, so money is out there. It’s not like we are pinning our hopes on a white ghost.”