As introduced, the preliminary $19.68 million municipal budget with a $14.38 million tax levy represents an approximately 6.5-percent municipal tax increase to the homeowner owning the average assessed home of $200,000 in the borough. The amount equates to a $180 increase, about the same as last year, but that amount has been formulated by using the historic state aid award from last year. If in fact state aid certifications as listed by the New Jersey Local Finance Board are passed through with Corzine’s proposed budget, then the tax increase will be $220 more than last year or about eight percent higher.

As formulated now with last year’s aid amount, the total municipal tax bill for the average assessed homeowner would be $2,918, but if Corzine’s plan to cut aid significantly statewide passes the legislature, the bill would be $2,958. That’s pending extraordinary aid awards, which the borough has yet again requested a significant amount to compensate for its loss of tax revenue from the 587-acre Empire Tract, now the Richard P. Kane Natural Area, which has been set aside for preservation by the state. The borough has jotted down a request for $1.7 million in extraordinary aid, the same amount that was lost in tax revenue when the land was set aside for preservation three years ago. Last year, the borough was only awarded $350,000 of the significant request.

"We’re looking for the money that the state has taken from us," said Borough CFO Dominick Giancaspro. "Along with that and the amount we are contributing to the Meadowlands tax sharing, it’s killing us. These are two things we have no control over in the budget."

Corzine has announced drastic proposed cuts to municipalities, but even more to smaller towns with populations under 10,000 residents like Carlstadt. The effort is to coax those municipalities into consolidating services with other towns to reduce costs, but as it stands many towns such as Carlstadt are opposed to the idea. For the borough of around 6,000 residents, Corzine’s budget cuts would leave the budget with a void of $200,000 in state aid.

Of the most significant cuts proposed in the aid is the consolidated municipal property tax relief allocation, which would be slashed by $160,000. The borough also stands to receive no homeland security assistance, which they received $50,000 from last year.

In addition to the looming cuts, Carlstadt is forced to deal with some significant rising costs within the municipal budget itself. This year, pension contributions are most affecting the need for the proposed tax increase. According to Giancaspro, between general municipal employee pension contributions and the police retirement system, the borough is strapped to add an additional $340,000. On top of that, the fees to the Bergen County Utilities Authority are anticipated to rise another quarter of a million dollars and for yet another year, the borough will have to pay over $1 million into the New Jersey Inter-Municipal Tax Sharing Pool. The $1.17 million this year has increased $55,000 over last year’s contribution.

"We’re investigating that [BCUA sewer charge]," said Giancaspro "We annually go up $10, $15,000 but $250,000? They said there may have been a broken line…but I’ve got the engineers looking into this."

To stabilize the tax increase as best as possible, the council trimmed about $10,000 from each department in the borough, which officials say will not cut services. Officials say they have also had to place a hiring freeze and are looking to the borough operated employee health plan and estimated tax bills that will cover the first half of the year’s operating budget to save as well. Traditionally, the borough has borrowed $4 to $6 million to cover the cost of running the town until the budget is finalized in the summer and then sends out one tax bill in the fall. The move would cost another $150,000 in interest on the borrowed money, but last year, the town decided to send out estimated tax bills at the beginning of the year to avoid the unnecessary expenditure.

Councilman and Finance Chairman Joe Crifasi is pushing legislators to lobby Corzine to consider Carlstadt’s plight with its loss of such significant revenue from the Empire Tract to help subsidize the budget with extraordinary aid. He said discussions with State Senator Paul Sarlo, however, have led him to believe that Corzine’s continuous pursuit of slashing spending will leave the borough with a less than expected chunk of their request again.

"We’re a small fish in a big pond, but we are fiscally responsible and have one of the most legitimate needs," said Crifasi. "There needs to be a breaking point, either we break because we can’t handle it any more or they break and help us out, but I don’t see us breaking any time soon."

Your tax bill

Budget: $19.68 million

Tax Levy: $14.28 million

Average assessed homeowner: 200,000

Anticipated tax bill if state restores same aid as last year: $2,918

Increase from 2007: $180 or 6.5 %

Anticipated tax bill if state passes municipal aid cuts: $2,958

Increase from 2007: $220 or 8%

Why it’s going up

• Bergen County Utilities Authority has increased sewer charge by $276,000
• Police pensions increased $276,000
• Municipal employee pensions increased $63,000
• Meadowlands tax sharing increased $55,000

Trying to stabilize

• Cut $10,000 from nearly every department, saving $100,000
• Freeze on new hires
• Estimating tax bills, saving approximately $150,000 on borrowed interest
• Maintaining municipal employee health plan, saving over $1 million