UPDATE: Woodbridge municipal tax increase blamed on state aid loss

by Sergio Bichao on Sep 21st | Email

Mayor McCormac (file photo)

WOODBRIDGE, NJ -- Property owners might grumble when they learn municipal taxes will climb another $128, but Mayor John E. McCormac thinks the 2010-2011 budget he introduced Tuesday is worthy of praise.

The $116.9 million spending plan is $1.6 million higher than last year's and calls for an 8-percent tax increase. Last year's budget hiked taxes by 10 percent.

"The real issue is state aid," McCormac told reporters before presenting the budget to the Township Council. "The numbers are irrefutable. If we didn't lose state aid our taxes would be down a very minimal amount."

The state this year slashed $6.7 million in aid to Woodbridge. As a result, tax revenue will have to be boosted by $5.4 million to $70.4 million.

While many school districts and municipalities have furloughed or laid off employees, McCormac has refused to do either, opting instead to reduce the municipal payroll through resignations and retirements.

The number of township employees has dropped from 741 in 2007 to 660 this year, McCormac said. The only department that has hired more workers has been the police department, but even there the township saved $2 million by not replacing a deputy chief, two captains, seven lieutenants and seven other officers, officials said.

Tax appeals fueled by a weak economy have also soared. The budget this year sets aside $5.2 million for tax appeals. About $6.5 million was paid out in appeals in the last three years alone, McCormac said.

While the township has lost $8 million in state aid in the last five years, McCormac said "uncontrollable costs" have increased by $11 million in the same time frame. Those costs include employee benefits and pension payments.

"It's like a perfect storm," he said.

Prior to Tuesday's meeting, members of the council suggested $1.8 million in adjustments to the budget, including adding $300,000 in revenue expected from the township's new red-light traffic camera on Route 1 and $740,000 in savings anticipated from an early retirement plan for public works employees. That plan, however, has yet to be approved by the state.

Council President Jim Major said members of the council met regularly with the administration for months as they crafted the budget, so the mayor's presentation — which included pie charts and graphs tracking spending over the years — did not come as a surprise to them.

"It's the first time I've seen them do that," said Tom Maras, a frequent critic of the administration, who suggested there might be more savings by reducing the workforce.

"Isn't it kind of ironic that all of a sudden we're dropping police positions when last year we couldn't possibly cut the police force? They actually wanted to expand it," he said.

The public will have an opportunity to comment on the budget and suggest changes during a hearing 7 p.m. Oct. 19 at the Municipal Building.