Nutley officials say municipal levy could rise about $469 as insurance and salary costs surge

Commissioner Tom Evans told the Nutley Board of Commissioners at a budget work session that the municipal portion of the average property tax levy is projected to rise by about $469, which he described as an "extraordinary increase." He urged department heads to seek reductions so the town could move closer to historical averages.

"Right now ... we are looking at a levy increase for the municipal portion only of $469," Commissioner Tom Evans said, and added that trimming the increase toward the town’s historical average (about $100) would require roughly $3 million in reductions.

Town finance staff, including D. Bartlett, the town’s CFO and treasurer, told the board the budget pressures center on personnel and benefits: salaries across departments are up about $1.3 million year‑over‑year and medical‑insurance costs — after netting employee contributions — are on the order of $3 million. Officials also cited higher electricity, gas and vendor charges for sewer and water processing as additional pressures.

Evans said the town has applied about $5 million from fund balance to reduce the levy in recent years but warned that relying on that cushion may be unsustainable going forward. He also noted that a state program that has benefited Nutley taxpayers may soon tighten eligibility, which could change revenues and taxpayer relief next fiscal year.

The mayor and commissioners discussed statutory obligations tied to the library budget; Evans said the town will be required to pay about $2 million to the library under the statutory formula, which contributes to the overall pressure on the municipal levy. He reminded the board that an updated salary ordinance will be needed for payroll processing in the coming year and said the town conservatively expects to introduce the budget at the first April meeting and to complete adoption by June, pending the state budget process.

Ray Sarinelli, a municipal consultant who addressed the board, said the spike in health‑insurance costs is the dominant driver he is seeing in municipalities across the state and that, when that portion is isolated, other parts of municipal budgets look closer to normal inflationary increases.

Commissioner Tucci echoed concern about insurance costs, saying the town faces increases he described as "36 and a half percent" for health benefits and noting the difficulty of absorbing those costs without significant cuts or external relief.

Officials set a near‑term deadline: departments were asked to submit any proposed changes by Monday the 16th so staff could roll them up for the board’s March 17 meeting. Department heads said they would continue to look for further reductions; one public‑safety commissioner said internal changes may produce substantial departmental savings while protecting core services.

On a procedural note, the board recessed to allow staff and department heads to complete requested work, and later took a motion to adjourn. The motion was seconded and approved by roll call.