The council faced a complex task of fine-tuning the 2025 budget to meet the state-imposed appropriations limit. Chief Financial Officer Bob Broney and his team identified a total of $1,989,415.92 in necessary cuts. By strategically reallocating funds and utilizing grant money, the council managed to reduce the budget by $2,445,345.50. The proposed budget adjustments included reductions across multiple departments.

The MIS Department faced a reduction of $199,000 in contractual services, while the tax assessment department’s reserve for tax appeals was eliminated. Legal services also saw cuts in attorney fees and ongoing litigation costs. The engineering department’s budget was adjusted by charging $118,000 to capital to offset salaries and cutting part-time employee and overtime expenses. In the police department, $70,000 was cut from salaries and wages, with further reductions in overtime and compensation. Unappropriated grant funds were anticipated to offset some police salaries.

The council also addressed significant cuts in the OEM budget, specifically a $115,000 reduction from MREs, planning to use prior years’ capital funds instead. The sanitation department experienced a substantial $221,000 cut in contractual services and equipment purchases due to staffing and budget changes.

An issue arose with the freeze of two federal grants important to the health department. This development, communicated the previous Friday, prompted immediate concern as the grants supported staffing and programming. The potential staffing reductions could alter the budget numbers before the public hearing and final adoption on May 14th. The state of New Jersey was reportedly seeking an injunction to lift the freeze, but the outcome remained uncertain, causing anxiety about the department’s future capabilities.

The council also discussed the impact of changes in taxation related to Valley Hospital. Historically, the village did not receive traditional tax revenue from the main campus, which was taxed separately based on beds. The state allowed the village to calculate its tax collection rate using a three-year average starting in 2021, thereby moderating the potential impact on the line item for uncollected taxes. This adjustment was a relief amidst the financial challenges of the budget process.

The meeting touched on the proposed tax rate increase of 3.14% for the upcoming year, maintaining the council’s tax levy cap. An explanation was provided regarding the two budgetary caps in effect: the appropriation cap and the tax levy cap. These caps are instrumental in helping municipalities manage budgets effectively, especially with rising healthcare costs. The employee headcount revealed an increase from 310 to 314, mainly in public safety roles.

Concerns were raised about obligations related to pensions and healthcare costs, although the current year’s healthcare burden was reportedly lower than the previous year. This slight relief was noted within the broader budget context, where a portion of expenditures is tied to healthcare and pensions. The council’s ability to make significant cuts was limited, focusing instead on operating budgets and salaries, with many major items being fixed costs under collective bargaining agreements.

The council expressed appreciation for department heads and the administration’s efforts to craft a responsible budget that meets community needs without compromising essential services. The acknowledgment of volunteer contributions further highlighted the community’s depth of support. The budget also accounted for capital necessary to address ongoing infrastructure improvements.