Better Than A Zero Increase Budget, says Hughes

The Borough Council last night approved the 2011 municipal budget  that will lower the average the homeowner’s tax bill by almost $50.

The $20.7 million municipal budget will result in no layoffs or cut services, said Councilman Richard Hughes, one of the architects of the borough’s financing plan. The budget was approved in a 4-2 council vote.

“This is a good, honest, gimmick free budget that is, for most homeowner, better than a zero increase budget,” said Hughes.

Councilman Joseph Bianchi praised the budget team, noting they overcame a huge budget hole without the availability of state aid.

“Considering where we started the year, facing more than a $1.6 million budget increase and possible layoffs and disruption of services and to get to this point is really a remarkable achievement,”  said Bianchi.

The borough started the year facing a $1.6 million deficit, but managed to cut $1.32 million in expenses bringing the budget $634,000 under the state budget cap.  The deficit was due in large part to money expended fighting last winter’s snowstorms and increases in health insurance and employee pension costs.

Although  the  municipal tax levy for 2011 increased by $280,000 to  $14.46 million this year, most homeowners will see their municipal taxes drop by about $50 because of the results of last year’s property revaluation. The property reassessment increased the average assessment of a home to $319,000 but dropped the tax rate. The new revaluation also increased the value of commercial property more than that of the average home, so more of the tax burden has shifted to the commercial property owners.

“For homeowners this is a good news budget and it is a responsible budget that allows the borough to meet its commitments to residents and still lower taxes,” said Hughes.

The borough cut costs by auditing all employees to determine who was eligible for health insurance and found a savings of $253,000 by adjusting Medicare eligibility and other modifications.
The borough also negotiated a $400,000 payment in lieu of taxes on property now owned by the NJMC that formerly belonged to now bankrupt EnCap / Cherokee  developer and was tax delinquent.

The borough’s arbitration with the police union for a new contract for officers yielded a zero salary increase this year and a savings in health insurance starting in October as the police are moved into the less expensive state health care system.

Bianchi said with the passage of the 2011 budget; “the borough is continuing on a path of sound financial planning and getting us off the roller coaster of artificially low budgets one year and big tax hikes the next.”

“This budget is based in reality and will allow us to improve services and have the equipment and finances we need to, support recreation, help senior citizen, collect leaves and plow the snow this winter,” said Bianchi.