When West New York taxpayers open their tax bills in a few weeks, they may come across a few noticeable differences.
For one, the town is now switching over to a calendar year (beginning in January) as opposed to a fiscal year (beginning in July) budget.
In their bill, residents will see the taxes for the final quarter of 2010 as well as a sneak peek at estimates for the first two quarters of 2011.
Residents will also be able to compare previous taxes from calendar year with the upcoming calendar year on the same bill.
The new calendar year budget for January through December 2011 will be introduced around March and public hearings will also be held at that time.
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Six month budget adopted
The state of New Jersey operates on a calendar year and several municipalities are now also choosing to make the switch.
Vega said that by operating on the same timeline as the state, it will be easier for the town to anticipate state aid and will also help stabilize taxes and assist residents as they budget for the year.
“In the calendar year it’s easier to deal with whatever state aid you get,” said Vega.
In order to make the transition, a $32.1 million six month “extension” budget was recently adopted to carry the town from July 1 through the end of 2010.
The municipal tax rate for 2010 is $6.41 per hundred dollars of assessed value as opposed to last year’s tax rate of $6.93.
So a resident living in the average home in West New York at an assessed value of $130,000 (which translates to approximately a $390,000 market value; the last reevaluation in West New York was done in 1991) will be paying $8,337 in taxes.
The new calendar year budget, for January through December 2011, will be introduced around March and public hearings will also be held at that time.
Bouncing back from state audit
Earlier this year, the town was released from state supervision after Vega requested assistance from the state to help the town deal with an $8 million budget deficit that he said had been accumulating for several years and which took a multi-faceted approach by officials to fix.
By agreeing to state supervision, all of the town’s financial documents were submitted to and reviewed by the state, which then gave advice on how to get the budget in sound order.
Vega has criticized the “credit card mentality” that sometimes prevails in government and said that he is proud that West New York is now “pay as we go.”
Vega also lauded the town’s new financial team which has contributed to getting the town back on track by using a zero budgeting system and implementing new processes to make sure that money is actually available before bringing on new hires.
Making the cut
Roughly half ($16.67 million) of the recently adopted six month budget is made up of taxpayer dollars.
The remainder is made up of fees, state aid, and grants.
But with economic turmoil on state and federal levels still trickling down to municipalities, Vega said the town is adjusting for less aid by making cuts where necessary.
A major part of that, he said, has been sacrifice on the part of municipal employees, which should be commended.
In West New York, approximately 90 percent of the budget goes towards salaries. Second to salaries, benefits are the largest expense for the town.
Some 98 jobs (or approximately 25 percent of the work force) have been cut in West New York under Vega’s administration – about half through layoffs and the rest through attrition.
Additionally, Vega said that since Town Hall workers agreed to a new health insurance plan earlier this year, the town has been able to save $2 million.
With the Police Benevolent Association and supervisors union currently up for contract negotiations, Vega said he is hoping to achieve the same type of savings.
Historically, he said, health benefits in West New York have cost roughly $10,000 to $15,000 more than similar insurance for state employees and those from other municipalities. The aim is to have all municipal benefits in line with the state.
Also underway in town is a tax audit of several waterfront “PILOT” (payment in lieu of taxes) properties, being conducted by an independent auditor.
Vega said that revenues from abatements have grown recently and the audit is being done in an effort to make sure that the town is not collecting too little or too much from the program.
According to Vega, the process will take a few more months to be complete.
Lana Rose Diaz can be reached at ldiaz@hudsonreporter.com.