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The borough council made significant progress in 2011 to reduce costs and minimize the budget impact on residents. The financial changes made in 2011 bode well for taxpayers in 2012 say borough officials.

The borough started the year facing a $1.6 million budget deficit, which would have to be made up with an 11 percent  tax increase.  However the council and its professional advisors worked diligently and amended the 2011 municipal budget and cut the increase to 1.97 percent ; slashing a projected  budget increase of $1,008,880 to  just $31,975.

Changes in 2011 that will have a positive impact on taxpayer in 2012 include switching borough employees to the state-run health benefits plan, which could amount to an overall savings of $900,000 for the year.

About a third of that savings will come from switching the police department  to the state health benefit plan from the previously negotiated plan that cost up to $31,000 for health care coverage per family per year. The police were enrolled in the state health plan in October.

The switch in health plans for the police department was part of an extended salary arbitration dispute that resulted in the arbitrator denying police the 3.5 percent salary increase the union sought retroactive to January. The arbitrator gave the police union no increases for 2011. The officers will instead receive a 2.5 percent increase on April 1, 2012 and a second increase on April 1 2013.

In 2010 the borough cut costs by auditing all employees to determine who was eligible for health insurance and found a savings of $ 253, 000 by adjusting Medicare eligibility and other modifications.

 The borough also negotiated a $400,000 payment in lieu of taxes on property now owned by the NJMC  that formerly belonged to now bankrupt EnCap / Cherokee  developer and was tax delinquent .  Those properties are the former Bergen County Utilities Authority trash processing site and property off of Porete Avenue .

In early December the borough council awarded a new there year trash collection contract to Cali Carting that will save the borough $300,000 over the life of contract

Cali’s contract will maintain year round, twice a week trash pickup at a cost of $1.248 million for three years. Additionally the hauler will collect recyclables for a cost of $474,000 over three years bringing the total cost of the contract to $1.72 million. Taxpayers will save approximately $100,000 in 2012 for trash collection.

With a new host community fee agreement in place with the New Jersey Meadowlands Commission the borough saved about a $700,000 in 2011 and will enjoy similar savings in 2012

Additionally, the borough receives $2 for each ton of trash processed at the NJMC trash baler and for the third quarter of 2011 the borough’s average monthly revenue from the baler was nearly $16,000.  Council President Richard Hughes said the borough hopes to substantially increase that revenue in 2012 as the NJMC obtains more customers for its trash processing operation.

“One of the key areas we are looking to in 2012 to increase revenue to offset taxes is from the NJMC trash baler operation. There are some promising negotiations between the NJMC and nearby communities that could result in a substantial increase in revenue for the borough,” said Hughes.

The borough was able to increase revenue in 2011 by putting into service an additional Emergency Medical Services   team during  the daytime hours. The added team enhances the borough’s response times, enables them to handle multiple calls and increases the borough’s ability to respond to mutual aid calls.  The resultant revenues from the enhanced service further assists in the council’s goal of stabilizing taxes, says Councilman Hughes.

A large ticket revenue item yet to be decided is the amount of money that the borough will receive from the New Jersey Meadowlands Commission for delinquent taxes owed for properties owned  by the NJMC that lay within the borough’s borders. Currently the borough and  NJMC are attempting to work out a tax compromise  — a Payment in Lieu of Taxes (PILOT) that could close a $1 million gap in outstanding taxes on the Kingsland landfill.

In 2012 the borough will save money on sewage processing fees as the Passaic Valley Sewerage Commission recently announced a 2 percent cut in its budget down to $157 million for next year. The borough currently will pay  approximately $ 1,072,483 for sewage processing saving the borough approximately $27,000 next year

The borough council is also looking forward to enjoying an increase in tax revenue  from small redevelop projects such as the one ongoing at the former mattress factory on Schuyler Avenue

“As the economy gradually improves we are seeing more interest in business investment in the borough,” said Councilman Joseph Bianchi

In 2012 the mayor and council hope they can generate more interest in its new redevelopment zone on the eastern border of the community abutting the Meadowlands.

“The potential revenue from the redevelopment zone is extremely substantial and I hope to see greater interest from businesses looking to invest in our community” said Hughes .

Although the economy continues to struggle, Mayor Peter Massa said the number one priority of the governing body is to lessen the economic impact on taxpayers without cutting services.

“We got through a very tough year without  any help from Trenton, but we managed to avoid layoffs and furloughs and there was no reduction in essential services,” said the mayor.

“Overall I think the council did a commendable job in 2011 of trimming costs. I am hopeful the work that was done in 2011 will have a positive impact on borough taxpayers in 2012 and that the governor’s administration will provide North Arlington with the aid we need until we get our redevelopment plan going, ” added Massa.