GLEN RIDGE, NJ — The Glen Ridge Borough Council recently heard a presentation on the 2021 municipal budget, with borough administrator Michael Zichelli and CFO Matt Laracy presenting a total budget of $15,904,545.68. Taxes will rise in town by 2.57 percent, bringing in $12,612,940.54. According to the presentation, 60.79 percent of Glen Ridge’s property taxes is paid to the Glen Ridge School District, 16.66 percent is paid to Essex County, and 22.54 percent is paid to the borough and the Glen Ridge Public Library.
“Despite the pandemic, property tax collections remained consistent with prior years,” the presentation read. “Municipal court, interest on investment and recreation revenues were strongly impacted by the pandemic.”
Glen Ridge received $247,583.16 in CARES Act funding in 2020; additional American Rescue Plan funding is expected to be received later in 2021. The funds from the ARP will have restricted uses.
The average home assessment in 2021 in Glen Ridge is $667,200. The average annual taxes residents will be paying in 2021 will be $4,915. It is an increase of $133.03 from 2020. State aid has been flat since 2010, with Glen Ridge receiving $399,541 each year since then. The borough will receive the same amount of money from the state this year.
The Glen Ridge Police Department is the largest line item in the budget, with a cost of $4,017,405 for the 23 police officers, including superior officers. Of that total, $2,600,339 is for base pay. Overtime and other compensation will cost $130,000; pensions will cost an estimated $822,066; health benefits will cost $360,000; and employment taxes and other benefits will cost $105,000.
Public safety takes up 22 percent of the total budget; Glen Ridge does not have its own fire department but shares services with Montclair.
Salaries for the seven supervisory staff in Glen Ridge will cost $1,123,515. Of that total, $828,515 goes to base pay; an estimated $95,000 is for pensions; health benefits will cost $145,000; and employment taxes and other benefits will cost $55,000.
The second-largest salary line item in the budget is for the 21 other union employees who work for the borough. The total personnel cost for Glen Ridge will be $1,652,633; of that total $1,002,633 is earmarked for base salaries. Overtime will cost $65,000; pensions will cost an estimated $225,000; health benefits will cost $275,000; and employment taxes and other benefits will cost $85,000.
In addition to sharing a fire department, Glen Ridge shares a sewer system and water distribution system with Montclair. It shares a health department and animal control services with Bloomfield.
In 2020 there was a significant decrease in the pool utility revenue; according to the presentation, the 2021 budget is based on a three-year average. This year’s pool budget is $400,000.
There are projects that will be continued in 2021 that are funded through the 2019 capital ordinance: the library stairs, the train station renovation and improvements to the municipal complex. Two hundred trees will be planted, and the public safety department will continue its community outreach program and work to attain accreditation by the New Jersey State Association of Chiefs of Police.
Road reconstruction is planned for Midland Avenue, Woodland Avenue, Freeman Parkway, Wildwood Terrace, Benson Street, Clinton Road, Baldwin Street and Lincoln Street.
According to the presentation, Glen Ridge’s credit position is very strong.
“Its Aa2 rating is slightly above the median rating of Aa3 for cities nationwide,” the presentation read. “The notable credit factors include a very strong wealth and income profile, a solid tax base and a robust financial position. It also reflects an exceptionally light debt burden and a somewhat elevated pension liability. The financial position of Glen Ridge is robust and is relatively favorable with respect to its Aa2 rating. The cash balance as a percent of operating revenues — 41.7 percent — is on par with the U.S. median and increased materially from 2016 to 2019.”
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