Closter — Closter officials held a hearing on the municipal budget last week after having postponed it several times because they did not have state aid figures until July.
The original $13.9 million dollar budget, which was approved in March, will be amended, however, and a hearing on the new $13.6 million dollar figure will be Aug. 27.
The amended budget reflects the $250,000 extraordinary aid the state gave Closter as well as some proposed appropriation reductions totaling $295,000.
Borough auditor Gary Vinci said the finance committee and Borough administrator recommended appropriation reductions in the areas of insurance, compensation for accumulated leave, tax appeals and money set aside for the capital improvement fund and other operating expenses.
"The state has tentatively approved the budget," Vinci said, adding that the budget is now below both state-mandated caps, which means officials will not have to apply for a cap waiver.
The state does not allow municipalities to increase their budgets more than four percent over the previous year’s budget and also forbids them from exceeding a 3.5 percent increase on the previous year’s tax levy.
Vinci explained the 2008 budget will represent a $164 annual increase on the municipal tax bill to a resident in an average assessed home valued at $780,000.
The extraordinary aid and proposed appropriation reductions helped to lower the tax burden on each homeowner, said Vinci. Prior to these adjustments, homeowners were strapped with a $340 annual municipal tax burden.
The new tax levy is $9,183,000, down from the $9.7 million dollar tax levy approved in March, said Vinci.
Vinci said increases in state pension contributions, sewer charges and fuel costs all drove the budget up from last year.
He said fuel costs increased $133,000 from last year, sewer charges from the Bergen County Utilities Authority went up $70,000 and Closter’s required contribution to the state pension plan is $221,000 greater than last year.
In addition, there was less surplus available due to its being used last year to offset the tax impact.
Officials may adopt the $13.6 million dollar budget at the council meeting Aug. 27 at 7:30 p.m.
