3.49% Municipal Tax Increase For Chatham Borough

CHATHAM, NJ — The COVID-19 pandemic had an impact on the health of Chatham Borough’s municipal budget, up for adoption on Monday, May 24, at the borough’s mayor and council 6 p.m. virtual meeting.

Preliminary budget numbers from the borough's April 26 budget presentation, reflect a potential increase of 5.4%, due to fiscal losses the municipality experienced from coronavirus. However, Chief Financial Officer Karen Fornaro said during a phone interview on Monday, the municipal portion of the tax is 3.49% with the entire tax levy coming in at under 1.78%, including schools and county taxes.

For a home assessed at $800,000, that translates to a municipal tax increase of $111.17. Rolling in the county and school taxes, it would be an increase of $301.36

According to that budget introduction presentation, the borough took a hit on its revenue in the areas of parking and municipal court receivables, with a loss of more than a $200,000 for parking and over $75,000 for the municipal court. Additionally, the borough faced a jump in its pension bill from the State of New Jersey's Police and Firemen’s Retirement System, of more than $100,000. Plus, the county ordered a re-evaluation that requires completion by the end of 2021, of $350,000, split over a five-year timeframe.

The budget for 2021 versus 2020 is estimated at $15,622,081 to $15,278,963, or a 2.25% difference. The amount to be raised by taxes in 2021 is anticipated at $8,738,740, with it $8,395,132 in 2020, for a $343,608 or 4.09% change.

The budget’s fund balance was also impacted by COVID-19, with $2,220,000 of $2,801,707 used, leaving a $581,707 balance. Projected 2020 results of operations, without COVID-19 Special Emergency funds was $1,775,271, with a projected 2021 fund balance per the presentation, without COVID-19 Special Emergency funds at $2,356,978.

However, as a result of the COVID-19 emergency, the state approved $300,000 Special Emergency funds, which according to the budget presentation was “used to replenish loss of revenue and re-establish fund balance levels," with the year end fund balance at $2,656,978.

Total budget with the library tax is estimated at $15,622,081, with the water utility at $1,711,500 and solid waste utility at $848,890.

The April 26 presentation broke down the property tax allocation as follows: regional school estimated at 61% or $29,102,294; municipal at 18% with $8,738,739; county estimated at 18% or $6,992,766; library at 2% or $851,432; and municipal open space at .27% or $130,000.

Chatham’s average home was valued at $800,000 in 2020, according to the presentation, with the annual tax bill at that value at approximately $16,948, with a municipal portion of $3,179. Road maintenance, police, the fire department, the health department, snow plowing, emergency services, administration, recreational facilities and fields, park maintenance, services for senior citizens, street lights and fall leaf pickup, are among benefits for Chatham Borough taxpayers.

The budget additionally includes an estimated $1,224,100 in capital projects, with $274,000 for the water utility; $240,000 in various road and engineering improvements; $236,000 for public works; and $228,500 for the police department, among them.

Residents who would like to virtually attend the meeting may do so at: 929-205-6099 (Meeting ID: 867 1218 6663) or on zoom at: https://us02web.zoom.us/j/86712186663.

Questions or comments about this story? Contact me at: jennifer.miller@patch.com.