The majority of Township Council members voted down a resolution to amend a $67.8 million municipal budget that, when combined with Montclair School District and Essex County taxes, would result in an 7.44 percent overall tax increase.

The tax increase is up from a previously projected 6 percent — also a far cry from Montclair’s annual average tax increase of 5.18 percent since 2005.

Mayor Ed Remsen expressed his fervent opposition to a 7 percent-plus tax increase in a year when the nation is confronting a potential economic recession.

"I realize that the perspective here is several towns have had much more onerous increases, and I realize we can’t control a lot of things in the budget, but I’m really struggling with ending our term or any year with that kind of budget increase," Remsen said. "Seven percent is a huge bite. It just looks like you’re not paying attention to the pain and suffering people have when you pass such an increase."

The tax surge was not what municipal officials expected to discuss this past Tuesday when they convened to introduce an amended budget.

Earlier in the day, representatives learned that the Board of Education had incorrectly estimated its budget’s rate by two tax points, increasing the Montclair School District’s financial outlay from about a 5 percent tax increase to approximately 7 percent.

"This throws off all the work we did," said Remsen, a member of the Board of School Estimate, which approves the school district’s budget. "I am furious at the lack of information we were given."

According to Remsen, the school board worked with numbers that did not reflect up-to-date assessments derived from Montclair’s property revaluation. Current figures were available in February 2008, before the school’s budget was completed.

However, since the Montclair School District’s financial plan had already been approved by the council and submitted to the state, Remsen said, "We can’t do anything about it now, and that’s a real problem."

To make up for the board’s increased tax rate, municipal officials would have to slice almost $2 million from their own budget to reduce the tax increase by 1 percent.

That could necessitate draconian cuts such as shutting down a firehouse, which represents a $1 million reduction in a year, or closing the Bellevue Avenue branch of the Montclair Public Library.

"These are extraordinary times, and everyone is feeling the pain," 4th Ward Councilwoman Sandra Lang said.

Had the resolution been approved, then the revised municipal budget would have authorized a 6.2 percent tax increase and a 10.26 percent increase in the municipal portion of the tax levy.

"We’re still out of line with that people can afford to pay," resident Larry Baumgarten said. "I would encourage you to address this again."

"We do not disagree with you," Remsen replied. "We have been wrestling with this."

The municipal budget must also stay within the state-mandated cap of no more than a 3½ percent increase in expenditures, while the municipal portion of the tax increase must adhere to a 4 percent cap, with certain items exempted.

"Since the municipal tax is going up 10 percent, obviously there are a lot of exceptions not included in the cap," 3rd Ward Councilman Jerold Freier noted.

Municipal officials are coping with significant expenses in necessary expenses, which include major costs such as employee pensions, utilities, fuel and insurance, all of which result in an 11.61 percent tax increase.

Township Manager Joseph Hartnett pointed out that the cost of municipal government without such items would result in a .93 percent decrease in the taxes for municipal operations.

Further reductions were proposed in the failed resolution to revise the municipal budget, which was supported by Deputy Mayor Joyce Michaelson and Freier. At-Large Councilman Ted Mattox was absent.

"We did the reductions we could to the municipal budget," Freier said. "We had eliminated a lot of expenses and had done as much as we could within the time available, and any further reductions were going to require a considerable amount of study and couldn’t be completed in the short term."

Not all of Freier’s colleagues agreed.

"I am not here on this budget yet," said 1st Ward Councilman Gerry Tobin. "I don’t like it. It’s too high."

The defeated resolution kept funding of the Montclair Public Library flat, which would save $149,730.

The town’s refuse collection would be privatized or changed, both of which would save an estimated $75,000 in three months and $300,000 in a year.

Community policing would be halted in the summer, saving $25,000.

Suspending the municipality’s commuter shuttle and outsourcing the deliveries of rear yard garbage collection would each save $30,000.

Capping firefighting overtime represents a reduction of $75,000.

The Montclair Arts Council (MAC) and the Montclair Economic Development Corp. each would experience a 10 percent cut, although council members later proposed restoring the MAC’s full funding.

Conversations on Race and the Summer Youth Employment would be restored to their former funds of $15,000 and $5,000, respectively.

The Montclair Community Pre-K would be cut by $100,000.

Presby Memorial Iris Gardens would only be assisted in its capital costs, but not in the operational budget, while the Montclair Volunteer Ambulance Unit was cut from the budget.

Professional and career advancement conferences would also be reigned in, along with eliminating two positions in the Department of Community Services.

HomeCorp.’s affordable housing consultant would be paid through a fund assessed on developers, saving $36,000 from the budget.

The council also proposed adding $10,000 into the budget should an asbestos investigation in Renaissance Middle School be needed, but this action was also defeated.

After impassioned testimony from residents, the council expressed opposition to cutting $81,550 from Clary Anderson Arena, proposing instead to earmark $40,000 for its potential privatization, should an amended budget be approved.

There will be a special meeting of the council tomorrow, Friday, June 20th, at 7 p.m. in the Council Chambers of the Municipal Building, 205 Claremont Ave., to vote on a resolution to amend the budget.

Remsen and his council colleagues intend to approve the financial plan before their terms expire on Monday, June 30.

On Tuesday, July 1, an entirely new 7-member Township Council will be sworn into office.