February 29, 2012
By LYNDSAY CAYETANA BOUCHAL
BYRAM — A petition to repeal the Township Council's Feb. 7 vote to increase the township appropriations cap from 21⁄2 percent to 3 1⁄2 percent was submitted for a referendum Monday.
Petitioners Harvey Roseff, Joann Smith, Eugenia Moran, Merwyn Lee and Nelson Drobness turned in 420 signatures, well over the 253 necessary to be considered, The number required was 15 percent of voters in the last election.
"I think we're breaking a 10-year habit of continually raising the budget cap limit and we're now returning to a more prudent budgeting policy, one that will require more fiscal responsibility and there will be more respect for the taxpayer," Roseff said. "We're looking to stick to the state's budget cap not the optional exception limit that Byram keeps selecting."
Township Clerk Doris Flynn has 20 days to certify the petition and verify the signatures.
"We had five circulators of the petition and we gathered about 420 signatures in a week's time," Roseff said. "We had pretty much overwhelming support from the public."
The appropriations cap determines how much Byram can spend, while the tax levy cap determines how much Byram can tax its residents.
Since 2003, Byram has unanimously voted to increase the spending cap as recommended by township professionals. The council has routinely approved the spending cap increase, and any unappropriated funds are retained in a cap bank to be used in case of emergencies. On Feb. 7, however, newly elected council members Nisha Kash and Carlos Luaces were the first to vote against the cap increase ordinance in nearly 10 years.
Matt Weng, staff attorney for the New Jersey State League of Municipalities, said municipal appropriations are limited to a 2.5 percent cap increase or the cost of living adjustment determined by the Department of Community Affairs, whichever is less, or a municipality can vote to raise the spending cap to a maximum of 3.5 percent.
Byram's appropriations that were within the cap in 2010 equated to about $8.1 million. With the 31⁄2 percent cap applied, appropriations totaled about $8.4 million. About $240,000 was retained in the cap bank for potential use in 2011.
In 2011, Byram's appropriations were nearly $8.4 million, about $74,000 over the 21⁄2 percent cap. The township then used $74,000 from the 2010 cap bank for assistance, dropping the unappropriated funds to about $165,000. An additional cap bank was created in 2011 from other unused funds, equating to another $122,000, or a total of $287,000 for potential use in 2012.
Last week, Township Manager Joe Sabatini said Byram has never used or exceeded the maximum allowable amount set by the cap. If the ordinance gets repealed, Sabatini said the township will not have cap banking for 2012, which could have adverse affects in the 2013 and 2014 budget cycles.
