"We're worried to death. I can't even let my grandson out in my backyard. " What's going to be done?" resident Michael Young said.
Tina Young said coyotes have dug beneath her fences and come close to her 5-year-old son.
"They come up to my fence like looking at me for food. It's nuts. I don't know if they'll bite or not," she said.
More than a dozen warning signs have been installed throughout the area telling people not to feed the coyotes.
Mayor Ernie Troiano Jr. said people who continue feeding the animals could face fines of up to $1,000.
"Leave them alone. Don't feed them. They will go to their food source. They have been here for years. We had no problems," Troiano said.
The area where the coyotes have been spotted is being redeveloped from a landfill into a nature preserve. Officials hope the coyotes will move back into their natural habitat.
"They're not being aggressive. I've pulled right up to them within 25, 20 yard, and they're looking at you," Troiano said.
New Jersey Fish and Wildlife says negative human interactions with coyotes are at a minimum. To avoid attracting them, people should not feed coyotes and should secure garbage and pet food, strengthen fencing and consider using motion-activated lights or sound deterrents.
No recent incidents have been reported. A wildlife professional assessed the area several weeks ago and is expected to return in the fall.