‘Zero Percent Property Tax Increase’ In Essex County: 2022 Budget – Montclair, NJ Patch
ESSEX COUNTY, NJ — The coronavirus pandemic hasn’t just been tough on the hearts of Essex County residents, it’s been hard on their finances, too. But a proposed 2022 county budget with a “zero percent property increase” may help them to weather the ongoing storm, officials say.
On Thursday, Essex County Executive Joseph DiVincenzo Jr. released details about his $839 million budget proposal. County taxes make up one part of a local property owner’s taxes, in addition to municipal and school levies.
DiVincenzo said it’s the first time he has presented a budget with a zero percent tax increase and has stabilized tax increases, limiting them to just 0.37 percent over the last three years.
Layoffs to county staff have been avoided since 2004, he added.
“In addition to the physical health effects of the coronavirus pandemic, there were negative impacts to our local economy and our residents’ financial health,” DiVincenzo said. “Presenting a 2022 budget with a zero percent tax increase while preserving services is recognition of the financial hardships experienced by our residents during these difficult times.”
“These past few years, we have seen the fruits of our labor – earning a Aaa bond rating, presenting this year’s budget that does not increase property taxes and refinancing debt without extending its maturity dates,” DiVincenzo said.
“These would not have been possible if we did not remain vigilant about keeping our financial house in order,” he said.
The 2022 budget proposal has been forwarded to the Essex County Board of County Commissioners for review.
DiVincenzo’s office released the following highlights:
- The 2022 budget includes a zero percent property tax increase. The state cap allows governmental operating budgets to increase property taxes up to 2 percent annually.
- Over the last five years, property tax increases have been limited to 0.45 percent and over the last 10 years, Essex County has held the increase in property taxes to about 1.16 percent, which is significantly below the state cap of 2 percent.
- Over the last 20 years, Essex County has held the increase in property taxes to about 2.04 percent, which is the fourth lowest percentage rate of increase of all New Jersey counties behind Hunterdon, Monmouth and Burlington counties.
- In August 2018, Essex County earned a Aaa bond rating with a “stable outlook” from Moody’s Investors Services, the first time in history that Essex attained the highest rating available.
- Starting in 2007, DiVincenzo implemented a “debt diet” initiative to stabilize the county’s debt service by refinancing existing debt without extending its maturity date and limiting the amount of new debt to a maximum of $20 million annually. In 2022, the debt service payment is $127.8 million, which will be reduced to $54.4 million in 2028.
- DiVincenzo has downsized the county workforce by not filling open positions unless they are essential to public safety and public health operations. This includes positions such as nurses at the Essex County Hospital Center or corrections officers at the Essex County Correctional Facility. Over the last 19 years, Essex County’s workforce has been reduced from a high of more than 4,000 employees in 2003 to 3,562 in the 2022 budget proposal.
- The fund balance projected for 2022 is about $85.9 million. This reserve helps the County respond to emergencies, displays fiscal stability to bond rating agencies and has helped improve the county’s cash flow and avoid taking out tax anticipation notes for the last five years. Officials said that $36 million in fund balance is being used as revenue in the 2022 budget.
- The 2022 budget is projected to have about $111.4 million of new, recurring revenue, which lessens the county’s reliance on raising property taxes.
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