CHESTERFIELD: Residents want smaller tax hikes each year

By Nokware Knight, Special Writer
   CHESTERFIELD — A citizens Budget Advisory Committee, formed after a massive increase in property taxes last year, wants the township to schedule a series of smaller tax increases.
   It also suggested that using more surplus and budgeting less money in such categories as the reserve for uncollected taxes as well as the capital improvement fund would go a long way toward minimizing the tax burden on residents.
   Last year, the township’s municipal tax rate more than quintupled from 5.3 cents to 29.5 cents, causing individual tax burdens to rise by $960.
   In response, residents created the advisory committee, made of five residents with accounting and public sector experience.
   In a public budget meeting March 7, the advisory committee noted that for the past three years, at least $750,000 had been put in surplus, which now stands at $3.2 million.
   The advisory committee contends that using more surplus, plus budgeting less in other categories could have prevented the increase.
   ”It looked like the amounts that were budgeted in prior years were just either kept the same or increased by a certain percentage,” said advisory committee member Stacy D’Artagnan.
   Ms. D’Artagnan said that process wasn’t so much of a concern in the past, “but now that the surplus is dwindling, I think you need to be more specific in the budget process. It’s more science now and not an art.”
   The committee wants the municipal tax rate to be dropped to 11 cents, giving taxpayers, on average, a $700 to $800 refund.
   Committee members acknowledged, however, that subsequent tax rate increases would be necessary and suggested the Township Committee schedule incremental tax rate increases over the next several years.
   Unlike 2012, advisory committee members said, scheduled increases would mean residents would not be taken by surprise.
   The committee also estimated that reducing the capital improvement fund by $25,000, reducing the reserve for tax appeals by $30,000, and transferring $75,000 from the reserve for uncollected taxes to surplus, the Township Committee could save an initial $140,000 without much effort.
   ”If you do those three things right there, you’re reducing two tax points in your budget right away,” Ms. D’Artagnan said.
   Advisory committee members also addressed a number of other ways to use reserves and other supposedly committed funds.
   There were a few easy wins. When the advisory committee asked about the $35,000 reserved for a reassessment program, township Committeeman Michael J. Hlubik agreed it could be could be canceled and rolled over into surplus. It had been for a reassessment completed some three to four years ago and kept on the balance sheet as a liability.
   The $69,100 surplus in the capital fund also could be put in the general surplus.
   There were some appropriations the Township Committee could do nothing about because they were mandated for specific purposes and would have to be turned back to the state if not used.
   The gist of the discussion between the advisory committee and Township Committee members, however, was all about striking a balance between give and take. The advisory committee wanted to use as much of the funds and surplus as possible, within reason, in order to lower the tax rate, as soon as possible.
   But Mayor Richard T. LoCascio, Deputy Mayor Jeremy Liedtka, Committeeman Hlubik and township Chief Financial Officer Wendy Wulstein felt it was better to keep enough surplus to protect against unforeseen expenses.
   For example, Ms. Wulstein said $409,000 reserved for recreational improvements potentially could have been spent if the Township Committee had adopted an ordinance to spend it elsewhere.
   And the township drew $25,000 from its $448,000 open space fund to partially offset its $50,00 parks and recreation operational costs. It could have reduced or even eliminated the $15,372 reserve for tax appeals.
   ”But once you do these things, it’s going to impact the amount that flows to surplus,” Ms. Wulstein said.
   Mayor LoCascio said he’d prefer to “chip away” at reserves, use less surplus and wean the township at a more gradual pace to ensure a safety cushion.
   Both sides agreed the creation of the advisory committee has led to productive and proactive discussions.
   The mayor said the advisory committee got the governing body and township administration to look at things previous Township Committee members and administrations had not bothered to consider.
   Although both sides weren’t in total agreement, they felt this was the beginning of the process — not a one-shot solution.
   The advisory committee also suggested additional investments, including new financial management software, sharing services with nearby towns, hiring a part-time town manager and updating the Master Plan, last amended in 2006.