Township Commissioners Aim for No Tax Increase

From the Retrospect

On the same day that New Jersey Governor Chris Christie announced sweeping cuts in aid to schools and municipalities, Haddon Township Mayor Randy Teague said that the commissioners anticipated introducing a municipal budget with no tax increase.

Early indicators from the Governor’s speech suggested a 20% cut in municipal aid which township clerk Denise Adams said equals about $300,000. Teague is proposing that the township adopt an accelerated tax sale program, which would cover that shortfall in aid.
An accelerated tax sale, explained township solicitor Stuart Platt, allows a town to collect all of the revenue a town assesses in a given year. Typically, a town like Haddon Township collects around 97% of the taxes. Municipalities are required to have a reserve to cover the uncollected taxes, which, in essence, is covered through a higher tax rate by the 97% that are current on their taxes.
Platt explained that under an accelerated tax sale plan, a municipality can get to the equivalent of 100% collection by speeding up the tax sale process. If the commissioners decide to switch to an accelerated tax sale this coming year, then a one-time infusion of about $300,000 would be collected by the sale of the delinquent 3%. That amount would roughly cover the anticipated loss in state aid this year.
Teague and Platt said the infusion would be for one year only but advocated another benefit of adopting an accelerated tax sale. The change would reduce the tax rate somewhat by eliminating the current system of having 97% of taxpayers cover the entire tax assessment.
Adams and township tax collector Jennifer DellaValle expressed reservations about switching to an accelerated tax sale system. “Once you go there,” DellaValle said, “you can never go back.”
Regular meeting attendee and Haddon Township resident Ed Loughman said he did not favor a switch to accelerated tax sales. He added that at one time, he participated in buying back taxes. “This may benefit the town in the short term but not in the long term,” he said.
“This will help reduce the tax burden,” Teague responded.
“I understand that perfectly,” Loughman said, noting that he is a Republican who favors small government. He said, though, that most people on tax sales “are in unfortunate circumstances” and the issue is not as simple as it may seem.
If the commissioner do decide to switch to an accelerated tax sale system, they will need to adopt a resolution to that effect at a future meeting, Platt said.
In other business:
• The township’s property tax revaluation process is underway with letters sent to all property owners outlining the process.
Teague noted that he had not seen the letter at his home, a complaint shared by many in town. The problem, Commissioner Paul Dougherty said, is that the plain envelope in which the letter arrived “looked like a solicitation letter.”
Several residents in the audience confirmed that they, too, had not seen the letter.
A representative for Professional Property Appraisers Inc. (PPA) agreed to undertake another mailing with the township. The outside envelope will be designed to make the official business of revaluation more apparent. The commissioners also plan to include letters explaining the need to conduct the revaluation.
Teague said the second mailing should be sent in a week’s time. After that PPA will be allowed to begin field visits to see the interior of properties. Already, the exterior of every property in town has been digitally photographed. PPA’s field representative will have identification, a badge, company-issued jacket and shirt, and be registered with the township police department.
• The town’s business improvement district (BID) program could see some expansion reported BID director Kate Burns.
Two former residential properties on Haddon Ave., near the town border with Haddonfield, are now business uses. One property is the new home of Haddon Group Realty and the other is currently unoccupied but was last used as an office.
Also, Burns said, Tap Room prinicipal Joe Kreps expressed interest in including the Crystal Lake Ave. establishment in the BID program. Burns has discussed the benefits of program which is funded by a special tax on business properties. Kreps, she said, wondered if other Crystal Lake business properties should also be included, particularly the nearby supermarket and shopping plaza.
In a related matter, tenants of the Westmont Shopping Plaza and Cuthbert Rd. have at times asked for BID services. Burns said she has had to inform them that there is little she can do since they are not a part of the BID. She said she has had discussions with the center’s leasing agent about including the Kimco-owned plaza.
• Resident Tom Cassel noted last week’s article in The Retrospect about a potential opening of an Iron Hill Brewery location on the White Horse Pike in Barrington. He wondered if the Westmont Theatre might be a logical location instead.
Teague said he, too, had read the article and reached out to Iron Hill last week. He has not heard back.
Burns said that a year ago she tried to interest Iron Hill in visiting available sites in Haddon Township. Their representatives, she said, balked at the mention of Haddon Township because of the proximity to P.J. Whelihan’s and sister restaurants Pour House and Treno.
• Township engineer Greg Fusco noted that the streets of the Bettlewood neighborhood have taken an especially bad beating this winter with the pending sewer replacement work. The contractor, he added, has been very cooperative but unable to do much yet because of the weather.
A road maintenance project is expected to go out to bid to deal with potholes across town. Public works superintendent Jimmy Stevenson said much work can be done in house but a number of intersections need more substantial work. Those jobs, he said, should be sent out to bid. Fusco will work on specifications for that work.