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Ridgewood reviews revenue shortfalls tied to Valley move, delays 2025 budget introduction to April
Summary
At a Feb. 27 special budget meeting the Ridgewood Village Council reviewed revenue shortfalls—largely tied to the relocation of Valley’s registrar functions—and agreed to delay introduction of the 2025 operating budget to April while staff finalizes numbers and awaits state guidance.
Village of Ridgewood finance staff reported a modest shortfall in 2024 operating revenues and urged the council to delay formal introduction of the 2025 operating budget until April to allow final reconciliations and a review by the state Division of Local Government Services.
The shortfall stems largely from the departure of Valley hospital services that had generated registrar fees (birth and death certificates) and from normal fluctuations in interest income. Finance staff say, after accounting for other adjustments, Ridgewood is likely to end up roughly $240,000 ahead of its 2024 projection once final entries are reconciled, but staff recommended postponing introduction so members can review revised line items and the DLGS can sign off on the reserve for uncollected taxes.
"I put on in front of you a revised version of the current fund revenues," said Bob Rooney, finance staff member, presenting a revised revenue sheet and highlighting line items with missing or corrected calculations. Rooney told the council the local revenues line was budgeted at $6,300,000 but realized $6,000,001, a shortfall of about $122,000. He said the health-department registrar line (line item 08105) had been budgeted at $461,000 but realized $293,000 — a $167,000 shortfall "much of that is attributed to the revenue that's generated in the health department due to the... Valley relocating to Paramus." (Bob Rooney, finance staff member)
Why it matters: the council planned to use an estimated $5.5 million of 2024 surplus to help balance the 2025 budget. Ridgewood's fund balance was described as approximately $7 million, and the village maintains a council-adopted resolution setting target ranges for surplus balances. Staff said final numbers on delinquent-tax receipts and other adjustments remain to be closed before the tax levy is finalized.
Council members and staff also reviewed other revenue variances. Rooney said interest-on-investments and deposits came in roughly $188,000 below a more conservative projection after large gains the prior year; he advised the council that interest revenue is hard to predict because rates fluctuate. Heather (staff member) explained that liquor-license renewal fees are paid even for licenses that are inactive and that renewal fees are at the statutory/population-based maximum and cannot be increased locally.
Manager Keith (staff member) summarized the procedural outcome: because two governing-body members will be absent on the March 12 meeting date and because DLGS needs to review the village's reserve for uncollected taxes in light of the Valley relocation, staff recommended moving the formal budget-introduction timeline. "We are recommending that we hold off introduction of the 2025 budget until April," Keith said; the administration proposed an April 1 working session to review cuts and an April 9 public introduction of the budget. (Keith, staff member)
Next steps: staff will finalize remaining entries, work with DLGS on the reserve for uncollected taxes, and present a list of cuts and changes at an April 1 budget meeting. The administration expects to introduce the budget on April 9 with a full complement of governing-body members and to proceed to adoption after the public notice/estoppel periods are satisfied.
