NORTHFIELD — Tom Polistina wasn’t exactly singing “Happy Days are Here Again,” but the City Council president did say the city is in good financial shape and used numbers to back it up.
On Feb. 3, during the first of three planned budget workshops, the head of revenue and finance said no municipal tax increase is planned for this year. Contributing factors include a gain of more than $3 million in ratables, an increase of $946,323 in surplus and a higher collection rate (up .11 percent to 98.46 percent).
The $14.297 million spending plan would keep the municipal tax rate at 96.8 cents per $100 of assessed value. The total budget is up $923,509 over last year but the amount to be raised by taxes will remain $8.418 million.
Overall, however, taxes are expected to increase. The total tax rate includes the local and regional school taxes, generally equaling about twice the municipal amount, as well as county taxes. Chief Financial Officer Dawn Stollenwerk calculated that rate at $3.513 per $100 — up 5.9 cents — based on the maximum of a 2.5 percent increase for each of the three agencies.
The city’s total assessed value increased for the first time since at least 2010, the last time there was a revaluation. That figure was not yet available.
An increase of $3.5 million is significant since the city lost more than $2.6 million last year even with $3.2 million added, mostly from the Cresson Hill complex. But that loss was much less than in years past. Stollenwerk said the city had lost an average of $12.3 million per year from 2010 to 2020.
“The one thing that it does is it’s definitely going to slow down or stop the tax appeals,” Polistina said, noting the city is usually pretty close to 100 percent regarding value versus assessment. “That helps to keep the tax rate stable.”
The city’s surplus account increased to $3.407 million, the most the city has had since 2014 and second most since at least 1999. The city will budget $2.08 million, or 61.05 percent, leaving a balance of $1.327 million. The balance equals 9.28 percent of the operating budget, up from 7.99 percent last year. Stollenwerk has said that keeping at least 10 percent is the goal.
Councilman Paul Utts noted the budget called for using $688,000 more in surplus than last year but also that the city would be keeping $258,323 more in reserve.
City Council also is in position to spend some money on capital projects, with $489,000 available from federal American Rescue Plan Act funding. CFO Dawn Stollenwerk said the money could not be used to directly reduce the tax rate but could be used for capital projects.
Councilman Greg Dewees, who oversees Birch Grove Park as part of his duties, recommended the city move forward with a new playground and athletic complex there. Amenities would include new equipment and a new surface at the playground, as well as basketball and pickleball courts. There also would be asphalt paths added to provide access to the mobility-challenged.
Polistina said it would be smart to use the ARPA funding to improve the park.
“It’s more of a lasting use for the funds that is a benefit for all,” he said.
Other improvements at Birch Grove Park include a bandstand pavilion and benches.
Councilman Dave Notaro, who is liaison to the Family Association of Northfield, asked about getting an additional set of bleachers so the existing ones do not have to be moved. He said relocating them puts unnecessary strain on the equipment, reducing its useful life. Notaro planned to look into the cost.
Other capital projects discussed include work at City Hall, which needs an HVAC system, boiler and roof. The roof work would include the police station at a cost of about $98,000. The fire department section would add $128,000.
Firefighters also may get new overhead and entry doors to their garage, where they long to put a new $1.2 million ladder truck the city is planning to finance. A $60,000 down payment is required for the long-term financing.
The city also estimated a cost of $250,000 for storm sewer mapping. Dewees, who oversees the Public Works Department, said some of the work could be done in-house, reducing the cost.
Polistina said City Council would finalize its decisions over the next two workshops.
“We’ll square those items away and decide what we will do right away and what we will do down the line,” he said.
Under appropriations, an increase in Joint Insurance Fund costs was offset by the $67,292 dividend. The employee health insurance premium is up $40,000 but pension costs fell $16,088.
On the rise are Atlantic County Utilities Authority tipping fees (up 5.6 percent) and other costs, as well as wastewater treatment ($200,000).
Employee unions under contract include firefighters (up 3.95 percent), nonaligned and volunteers (up 3 percent) and police officers (up 2.25 percent plus 1 percent step). Negotiations continue with the government workers union.
Stollenwerk noted the state has once again extended the deadlines, with introduction required by March 31 and passage by April 29. Other budget workshops are scheduled for 6 p.m. Feb. 24 and 4 p.m. March 10 at City Hall.
By CRAIG D. SCHENCK/Sentinel staff