Tinton Falls Budget Features Municipal Tax Rate Increase
By GARRETT STASSE
The Tinton Falls Borough Council took a close look at its proposed 2008 municipal budget, and wasnt happy.
The borough, like nearly all suburban New Jersey towns, was hit hard by the loss of state aid, a softening real estate market and other factors beyond its control, and Mayor Peter Mclearies spending plan reflects it.
If adopted as is, the owners of a house valued at $343,683 the borough average would see the municipal portion of the property tax bill rise $49, he said.
The goal was a zero increase, but the loss of $178,902 in state aid, soaring fuel, pension and insurance costs wrecked that.
We faced the realization that far from having a zero-increase in municipal taxes that taxes would have to be increased substantially, Maclearie said as he unveiled the budget at a council workshop on Tuesday. The situation was very discouraging and much time was spent considering possible options in preparing the 2008 budget.
Worse, Chief Financial Officer Stephen Pfeffer said the borough lost thousands of dollars in interest when the Federal Reserve Board cut interest rates three times last year. That money would have been applied to current spending to reduce the property tax exposure.
Options were evidently few as neither he nor council wanted to cut services or lay off staff. A large chunk of surplus from last year was applied, hoping the economy would strengthen during the year.
We are aware of the inherent risk involved in doing this should the economy not recover in 2009. However, we are even more concerned by the negative impact a larger tax increase might have on our borough residents during this time of economic stress, he said.
The proposal calls for total appropriations of $20,901,804, compared to $19,916,088 in 2007. The amount to be raised through taxation would be $10,317,640 this year, compared to $9,663,618 a year ago. The utility departments proposed budget would be $4,923,051, compared to $4,960,850 last year.
Maclearie said he didnt know if any state aid would be restored.
Councilman Brendan Tobin was plainly displeased, but he said visits to other towns around the state showed him things could be worse.
Towns all over are cutting services and people. We did a good job saving money here. There was no tax increase last year and Monmouth County has done what it could, he said, referring to the Board of Freeholders avoiding a tax increase.
He also questioned possible costs for a technology coordinator to run the boroughs computer and other such systems.
That cost was $98,000, a huge amount of money, he said.
Borough Administrator Brian Dempsey said that would provide better and more efficient service and allow the borough to end a $25,000-per-year shared services agreement with the Board of Education for technical help.
The computer system is so big we cant have him here two days a week. He runs around like a chicken with his head cut off, he said.
Tobin said he comes to the municipal complex frequently to see how spending can be pared, and is developing some ideas on vehicle usage. He also asked residents for help.
Im asking residents to come up with ideas to save money, he said.
Councilman Gary Baldwin said he wants spending cuts.
Cutting spending is the only way to go. We cant continue to expand and grow and take it out on the taxpayers, he said. Theres a need to reduce spending. Theres always a little slack. Theres probably room to squeeze a little bit.
Councilman Paul Ford said, Revenues are coming down while expenses are going up. This years budget, although it looks tough, but itll be nothing compared to coming years with a 4-percent cap.
The cap is the state-mandated ceiling on spending.
With ballooning costs and a decline in income were going to have a tough time, he said, praising Maclearie for a good start.
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