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Council flags steep health‑benefit and energy‑tax risks to Waldwick budget
Summary
Council members warned that state health‑benefit cost increases could raise borough expenses by roughly $450,000 and that mismanaged energy‑tax receipts may expose the borough to a potential $2.5 million liability, prompting plans for near‑term and long‑term budget reviews.
Council members told the Sept. 30 meeting that the borough faces notable fiscal pressures heading into next year.
Councilman Ritchie said the finance committee has postponed regular meetings to allow the new administrator to transition, but cautioned that state actions could drive health‑benefit costs up “as high as 36%,” a scenario he estimated could increase the borough’s expense by about $450,000 and also affect municipal employees’ contributions.
Ritchie also raised concerns about energy‑tax receipts the borough expects from the state; he described sections of those receipts as “not funded in Trenton,” and said the borough faces an exposure he estimated at $2.5 million if the state does not remit funds that are ordinarily passed through to the municipality.
Council members said they will review both short‑term budget adjustments and longer‑term strategies to reduce dependence on state aid. Mayor Giordano and staff did not present a finalized mitigation plan at the meeting but directed the finance committee and administration to begin budget work with the goal of resuming committee meetings in mid‑to‑late October.
Councilman Ritchie: “We could see an increase as high as 36% that not only affects the borough to the tune of $450,000 or so, but all the employees.”
