Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
Residents question tax increase; borough CFO explains fund balance limits and use of Cap Bank for school assistance
Summary
At the Aug. 5 Mount Arlington council meeting, resident speakers pressed the borough on this year's tax increase and whether municipal funds could have covered school-related costs. Borough Administrator/CFO Carolyn Rinaldi said the borough used Cap Bank funds for a one-time school payment and that the municipal 2% levy cap limits fund-balance transfers.
Residents used the public-comment period at the Aug. 5 Borough of Mount Arlington Council meeting to press officials over a tax increase and the borough's role in funding school costs.
Resident Kyle Poskitt said he was "surprised at the tax increase for this year" and asked where budget revenue was being used and what an ideal fund balance would be. Borough Administrator and CFO Carolyn Rinaldi responded that an ideal fund balance is about one-third of the annual municipal budget and that the borough had used Cap Bank funds for a one-time payment to the school district under a memorandum of understanding. Rinaldi said that transferring the municipal fund balance to cover school emergencies would have exceeded the municipal 2% levy cap and therefore was not a feasible option.
Mayor Stanzilis added context, saying many school districts in the state faced similar difficulties this year and encouraged residents to contact their state representatives to urge consideration of legislation to shift financial responsibility for special-needs and unhoused students away from local districts.
Other public commenters raised related items: Michael Shannon noted that seniors may obtain a New Jersey parking permit for free access to state parks, and Bill Holy asked for clarification of the municipal budget formula; Administrator Rinaldi reiterated that budget revenue must equal appropriations and that the fund balance is used on the revenue side to offset appropriations.
Why it matters: residents are seeking clarity about the tax increase and how municipal finances were applied to school needs; the CFO supplied the borough's procedural constraints and the one-time use of Cap Bank funds but did not present a long-term change in municipal policy.
Next steps: no vote or new policy was taken during public comment; the council will proceed with the previously adopted ordinances and budgets. Residents were encouraged to contact state legislators regarding state-level funding for school expense categories outside typical local control.
