Lower Open Space Tax to Appear on Ballot

Amid concerns that a too-large tax could hurt chances of voters approving an open space referendum, Haddonfield commissioners voted Wednesday to halve the proposed amount.

A November ballot question will now ask voters to approve an open space tax of a maximum 1¢ per $100 of assessed property value. A previous resolution passed in June had called for a maximum 2¢ open space tax rate.

Borough commissioners met for a special meeting Wednesday at the suggestion of Commissioner Ed Borden, who said he had concerns about the proposed tax rate. Since Haddonfield voters first approved the open space tax in 2006, the town underwent a reassessment that more than doubled the tax base.

At the same time, the commissioners each year chose to enact a lower open space tax rate than the maximum—anywhere from 1¢ to a half-cent. The rate currently stands at a half-cent per $100 of assessed value.

“The language that we originally approved for this open space tax (resolution), if approved by the voters, would actually allow us to assess an open space tax of four times what we’re doing now,” Borden said.

“I believe that is not a good idea in these economic times. I believe that we should decrease the maximum amount that we can assess from 2¢ to 1¢.”

His fellow commissioners agreed, voting unanimously to amend the ballot question. If approved by voters, the open space tax will be capped at the 1¢ level until 2016, with the commissioners deciding on an annual tax rate within that cap. Residents with a home assessed at the borough average of $491,359 would pay a maximum $49.14 annually in open space taxes.

Before voting, Commissioner Jeff Kasko played devil’s advocate, wondering if the commissioners should tie the hands of future officials.

“I agree that a half-cent is probably adequate, but going up to 2(¢) gives us more flexibility, with Bancroft and the possibilities of the future and the fact that this would go to 2016,” Kasko said. “… I’m not saying it needs to be higher, but I have a question as to whether we’re restraining a future board’s flexibility.”

Future commissioners could ask for a higher amount before 2016 with another voter referendum, Mario Iavicoli, borough attorney, told Kasko.

Although the economy and the borough’s larger tax base were cited as primary reasons to cut the maximum open space levy, it’s clear questions about voter support figured into the idea.

When Haddonfield voters approved the open space tax in 2006, it was by a razor-thin margin of 2,551-2,437—and that was before property values increased.

A higher maximum tax rate, Borden said, “might generate enough concern that the referendum could be in trouble.”

The Trust for Public Land, a national nonprofit working to conserve land, recommended keeping open space taxes as low as possible to maximize voter approval, Borden added. The group offered to help Haddonfield conduct a public education and referendum support campaign.

From its approval in 2006 through the end of 2011, the open space fund will have collected $525,000. None of that money has been spent.

That has been a conscious decision, Borden said when asked why Haddonfield needs an open space tax if the town doesn’t spend the money collected.

“We’re looking very seriously at in connection with the Bancroft purchase,” Borden said. “That’s not a final decision by any means, but we’ve said over and over that one of the reasons we haven’t used money from the open space fund yet is because of the possibility of an acquisition.”

The borough and Bancroft remain on how much the property is worth. Borden said cutting the maximum open space levy would not make a big difference in the long run, as the fund would provide only a portion of any purchase amount.

“It would certainly involve a more substantial expenditure than that,” he said.

Along with the tax rate, the commissioners made minor language changes to the resolution, including striking a section outlining what the fund may be used for. Those permissions are included in the state statue on open space funds, attorney Iavicoli said.