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April 13, 2011

RE: Energy Tax and CMPTRA Under-funding Informational Tools

Dear Mayor:

No funding issue is more important to New Jersey municipalities than the annual State skim of Energy Taxes and CMPTRA. Faced with an impending State Supreme Court decision that could lead State policy makers to further cuts in dedicated property tax relief funding, it is imperative that we all take a strong stand on this.

There are four steps that you can take today to protect your fellow citizens from further cuts and to set our State on the road to delivering promised property tax relief funding.

Last Thursday, April 7, we sent a letter asking you to join our campaign to end the State’s misuse of vital municipal property tax relief funding. (You can access that letter at

At that time, we asked you to fill out and return the form that appears on the last page of that letter. There is no better way to indicate your support, if you agree that the State should comply with its own statutory funding requirements; and that doing so would enable you to provide, for your citizens, immediate and significant property tax relief, without any unnecessary cuts to vital local services.

1. If you have not yet done, and if you agree that your taxpayers should get all of the relief that they have coming to them, please fill out and return that form to us.
Starting with the information in that letter, Wharton Borough Administrator and CFO Jon Rheinhardt developed a slide show and power point presentation that could be used, by the Mayor and the governing body, to explain the impact of State misuse of the funding on the citizens and businesses owners in Wharton, who have been forced to suffer the consequences. You can review that presentation on our website at

2. Consider adapting the presentation for your taxpayers, to provide important perspective on local budgetary dependence on property taxes.
Mr. Rheinhardt has also developed a spreadsheet that can be used to calculate your municipality’s annual and 10-year aggregate losses. Based on that, you can determine what your taxpayers should have received in prior years, and would be receiving this year, if the State complied with the aggregate funding requirements every year, and if it distributed to your municipality the same proportion of the total that your taxpayers originally received in 2001.

If you have access to the excel program, you can open that spreadsheet at The numbers currently depicted on the spreadsheet show Wharton’s actual Energy Tax and CMPTRA receipts, the statutorily required amounts and the differences. If your CFO will enter your municipality’s actual annual receipts, in column c, the program will complete the calculations and show your annual and 10-year losses.

3. You can use this resource to compute the amount of relief that your property taxpayers have provided, from these sources, to the State.


4. If your governing body approves the resolution, please send copies to the Governor and your Legislative delegation, as well as to the League. 

If you have any questions, contact Jon Moran at 609-695-3481, ext. 121 or

Very truly yours,


Hon. Chuck Chiarello
NJLM, President
Mayor, Buena Vista Twp.
Hon. Janice Mironov
NJLM, 2nd Vice President
Mayor, East Windsor
William G. Dressel, Jr.
Executive Director





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