Caldwell Tax Hike .3% After $81K Slashed From Budget

The Caldwell Council slashed more than $80,000 from its introductory budget on Tuesday, brought the tax increase down to under 1 percent and came one step closer to a final 2013 budget.

The council was able to find cost savings in the budget it introduced in May because "there were some things we didn’t know at the beginning of the year,” said Mayor Ann Dassing. About $81,000 in cuts reduced the total budget to $11,851,778 and dropped the tax increase from 1.4 percent to .3 percent.

The average assessed home in Caldwell, priced at $421,455, can expect to pay an additional $8.76 in taxes this year, bringing the average municipal tax bill to $2,987.

The tax increase is minimal compared to the tax hikes of recent years. The average tax increase in Caldwell from 2005-12 was $165. The highest increase was in 2005 when taxes jumped $594 and the lowest was in 2011 when taxes went down by .3 percent. This year’s tax increase will be the second lowest hike since 2005.

Councilman Edward Durkin Jr., chairman of the Finance Committee, said the borough’s finances have faced many challenges this year, including climbing debt and falling revenues.

Some of the largest cuts were made to municipal salaries and wages: administration costs were reduced by about $20,000; police department expenses were cut by about $11,000; and the engineering department’s expenses dropped by $6,000. In addition, the council nixed about $25,000 from the Caldwell Community Center’s budget.

This budget also includes a 2 percent across-the-board salary increase for the borough’s nearly 20 employees.

After months of crunching numbers, Dassing said, “This is it.” This budget will be introduced at the council’s Aug. 6 meeting and Dassing said she expects it to pass.

Durkin said he “would like to think the entire council has come to a majority consensus” on the budget.

“I urge the rest of the council to come into agreement with the Finance Committee and move this budget along,” said Durkin.