West Orange CFO John Gross presents the capital budget at the Sept. 8 Township Council meeting.
WEST ORANGE, NJ — The West Orange Township Council passed the 2020 municipal budget at its Sept. 8 meeting with a vote of 4-1; Councilman Joe Krakoviak cast the only opposing vote. The total budget, which was presented by Chief Financial Officer John Gross at the Aug. 11 meeting prior to a public hearing, is $90,676,490. The tax increase will be 1.76 percent.
Personnel costs take up the bulk of the appropriations in the budget at 62 percent. The police and fire department budgets are the largest; police salaries and wages will cost the town $12,478,167, while other police expenses will cost $157,001.78. The fire department’s salaries will cost $10,364,523, and other fire expenses will be $105,032.67. Salaries under the Uniform Fire Safety Act will cost $28,250 and other expenses are listed as costing $29,687. Emergency Management Services will cost a total of $16,245.
At the Aug. 11 meeting, Gross said the total appropriation costs in the 2020 budget went up by more than $2.5 million from last year. Three of the line items are related to personnel: salaries and wages, pension costs, and health benefits. Salaries and wages rose by $900,000, pension costs went up by $70,000, and health benefits rose by $1.3 million.
The bulk of West Orange’s revenue comes from taxes, which make up 68 percent of the total. State aid will provide $4.7 million, and delinquent taxes will give the town $2.6 million. Grants will provide $3.7 million in revenue. The hotel tax, cell towers, recycling center and ambulance billing are other sources of revenue.
“I do want to note and thank my fellow council members for voting against some of the proposed increases that allowed us to get below the 2-percent increase in the tax levy that was originally proposed,” Krakoviak said at the Sept. 8 meeting. “I wish that we had been able to find three more votes to reduce spending further, particularly given what’s going on with the economy because of COVID.”
The council also approved the 2020-2021 capital budget at the meeting with a vote of 4-1; Krakoviak again voted against it. Gross presented the capital budget, which is the budget for larger projects, as $13,463,500. The budget, which is approved through an ordinance, will likely cover most of the 2020 and 2021 capital needs.
“That’s not to say that we won’t have additional capital needs that we’ll come back to you next year for, but I think they will be limited,” Gross said.
The largest line item in the capital budget is $7,673,500 for streets, sidewalks and sewers. Indoor facility improvements will cost $1,160,000 and outdoor facility improvements will cost $1,659,000. Information technology improvements will cost $1,667,000. West Orange will be spending $814,000 on vehicle acquisition and $490,000 on capital equipment.
“The lion’s share of this ordinance is for various road programs,” Gross said. A list of streets that will be paved or have other maintenance done on them was included in the presentation.
Councilman Jerry Guarino asked if electric car–charging stations would be included in the capital budget, and Gross said the administration didn’t include them in this year’s capital plan.
“We have not tapped specific locations for that; we certainly have entertained it,” he said. “When we move the DPW, those locations will be viable for that. We’re going to look to purchase cars in the future moving forward that are more cost-effective electric vehicles. Once we get a critical mass it’ll make sense for us to invest in larger banks of spaces.”
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