By Catherine Wilde
Staff Writer
Published March 26, 2008

For the first time in three years Old Tappan taxpayers will be hit with a municipal tax increase. The budget as introduced asks them to shoulder a tax levy of $3,717,593 for the 2008/2009 calendar year.

However, this number will increase to $3,821,931 should the state make the anticipated cuts in aid to small towns such as Old Tappan.

As introduced, tax payers will be paying $456,550 more than last year, $157 more annually for the average homeowner’s tax-bill in a house valued at $626,000.

Should the state cuts take effect, the average taxpayer will pay $207 more annually.

The municipal budget, introduced March 17, totals $9,200,074. Mayor Victor Polce said factors beyond the officials’ control contributed to the hike in taxes.

"We had a flat operating budget for the year or a very slight increase. The things that we could control we did a good job with but on those things we can’t control we were killed," he said.

Polce cited pension obligations, the rising costs of health insurance and the reduction in state aid as the three factors beyond the municipality’s control contributing to the increase.

"I feel that if you take out the pension obligation, which the town has, the exorbitant health insurance increase, which we got socked with, combine that with the reduction in aid by some hundred thousand dollars, we’re being measured unfairly against these things we cannot control," Polce said.

Whether or not the anticipated cuts in state aid will take effect will be determined when the governor’s preliminary budget is approved by the legislature in May.