FOR IMMEDIATE RELEASE: MARCH 9, 2021

PASSAIC COUNTY BOARD OF COUNTY COMMISSIONERS ADOPT 2021 BUDGET
No tax increase for the third year in a row brings relief to working families amid pandemic.

(Passaic County, New Jersey) – On Tuesday, March 9^th, the Passaic County Board of County Commissioners adopted the county’s annual budget for the 2021 fiscal year. The 2021 budget of $436 reflects the county’s responsible and well-structured budget practices. This budget adoption marks the third consecutive year the county tax levy has not increased and the fourth time in the last five years.

“We’re proud to present another annual budget without any increase in taxes. In a time where our individual residents and families are experiencing the financial toll of the aftermath of a pandemic, it was important for us to prioritize tax relief,” stated Commissioner Director Pat Lepore. “Our conservative budgeting has not only allowed us to move toward financial stability, but it has also allowed the county to receive an Aa1 bond rating, the second highest bond rating attainable.”

The county budget was introduced two months ahead of the state mandated deadline, which allowed the county’s 16 mayors and constituents to have a clear picture of what to expect from the county.

Every year the Board of County Commissioners prepares the budget recognizing that the decisions made will affect taxpayers and the budgets beyond the current fiscal year. As a result of this practice, Passaic County has had the following outcome:

• The 2021 budget has no increase in the tax levy for the third straight year.

• Over the last 5 years, Passaic County has held the increase in the tax levy to .37 percent, which is well below the state mandated cap of 2.0 percent.

• In August 2020, Moody’s Investor Services, affirmed Passaic County’s Aa1 bond rating with a Stable Outlook. To put this in perspective, just 20 years ago, the County’s bond rating was just above junk bond status. Having a strong bond rating demonstrates the fiscal health of a government and due to this, lower interest rates are offered which helps save money.

• The Board implemented a policy 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 $10 million annually. In 2021, the debt service payment is $36.4 million, which will be reduced to just $13.9 million in 2030.

• Over the years, Passaic County has built a strong fund balance by realizing savings in previous years’ budgets. The fund balance for 2021 is approximately $85.5 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.

• $19 million in fund balance is being used as revenue in the 2021 budget, following the County’s policy of never utilizing more fund balance than the anticipated regeneration of funds for the following year.

• The county continually looks for new opportunities for recurring revenue, which includes shared service agreements with other governments and government agencies, which lessens the County’s reliance on raising property taxes.

The Passaic County 2021 introduced budget and presentation can be found here: Passaic County 2021 Budget.

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