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Waldwick council warns of shrinking surplus and possible tax increases
Summary
Council finance chair presented figures showing the borough used $2.5 million of surplus to balance the 2025 budget and faces a continuing depletion of reserves amid rising expenses; council scheduled budget presentations and flagged potential tax increases to stabilize finances.
Mr. Monelloo, speaking for the borough’s finance committee, told the council that Waldwick’s budget is organized into three parts—the general budget, capital projects and a separate water utility budget—and that the town’s finances are showing signs of stress.
“Maintaining low taxes is required using additional surplus, which is unsustainable long term,” Mr. Monelloo said, summarizing the central trade-off facing the council.
He reported the borough’s general appropriations were roughly $16 million (excluding school and county levies), total municipal revenues of $58.8 million with about $35 million going to schools and another $5 million to the county, and that debt service amounts to nearly $1.7 million in interest. For the 2025 budget the borough applied $2.5 million in surplus to balance spending; when that is accounted for the surplus decreased by about $900,000 year over year, a trend Mr. Monelloo said has continued for three years.
Monelloo explained the core problem as expense growth outpacing tax revenue growth: although the borough has kept tax rates comparatively low, that policy has contributed to the drawdown in reserves. He told council members the two primary options are to reduce services or raise taxes, subject to statutory constraints on borrowing and the borough’s obligation to balance its budget.
He outlined the near-term calendar for budget work: an initial operating-draft presentation to council staff will be shared ahead of the Feb. 24 meeting, a full presentation of capital requests will follow at that meeting, and the initial operating-budget presentation is scheduled for the March 10 council meeting. He also reminded the council that an amendment to the affordable-housing ordinance must be introduced tonight as part of meeting a March 15 statutory deadline related to the borough’s COAH/Fair Share Housing obligations.
The council pressed staff to scrutinize capital requests and existing contracts and asked for further details on potential expense reductions and revenue options. No final tax-rate decisions were taken at the meeting; council members said they will revisit specific proposals as the budget process continues.
The council is scheduled to receive more detailed budget papers and forecasts in advance of the Feb. 24 and March 10 meetings, when specific revenue and expenditure choices will be debated.
