Town to Start Sending Estimated Tax Bills

Residents should expect to receive estimated tax bills from the town government next month in a new practice being debuted to increase summer cash flow.

Town officials announced plans to start the estimated tax bills during Tuesday evening's Town Council meeting as a way to keep money flowing to the town, county and Board of Education. Town Administrator Jim Gildea said cash flow will likely decrease in the summer and the town would not be able to make payments to the county and school system.

"We estimate that cash flow is severely reduced in July and August and we may need to delay county and Board of Education payments which I do not recommend," he said.

The town's tax collector handles collection duties for the county and school system with the funds being sent to the two entities by the town. In past years, the town would delay tax bills until the summer and use surplus funds to handle payments to the county and school system during the delay in summer time cash flow. Residents would routinely see a delay in the August 1 tax deadline due to the delayed bills.

This year's budget features a large loss in surplus funds, with the town using a large amount of surplus from last year's budget to fund operating expenses, along with the virtual elimination of the town's sale of assets account. This will leave the town without extra funds to distribute to the county and school system.

Gildea said the estimated tax bills will be sent to residents in June in time for the August 1 payment. This practice is done by a lot of towns in New Jersey. Excess funds paid by residents in the August bill can be applied as a credit for future bills.

Last year, the town's tax bills were not sent out until late July due to the town budget passage coming in late June after a delay in budget certification by the state Department of Community Affairs. The DCA approval is needed for municipal budgets every few years and will not be needed by Westfield this year.

Gildea said the decision to mail estimated tax bills to residents is behind the $8,000 budget increase for the tax collection department. He said these funds will be used to print and mail the bills.

"It will be common going forward," Gildea said.