Wednesday, July 21, 2010
BY TERESA EDMOND
Suburban Trends STAFF WRITER
While the municipality will spending less, taxpayers will be taxed more thanks to the hits the borough took in state aid and revenues.
The Borough Council has introduced the 2010 municipal budget that totals $14.4 million. This year's municipal budget translates to a 3.37-percent tax increase, which means the owner of the average borough home assessed at $356,235 will pay $304 more in taxes.
The $14.4 million budget is down 6 percent or $913,000 from the 2009 budget of $15.3 million.
The 2010 municipal tax levy is $10,007,344, compared to the 2009 tax levy of $9,140,143. That's an $867,201 increase or around 8.5 tax points.
The borough's total 2010 revenue is $4.4 million versus $6.2 million in 2009. The borough has taken a roughly $1.8 million hit in this year's revenues, which is "an astounding number," said Councilman Walter Davison.
Revenue shortfalls include a $675,000 surplus reduction in 2010, a $415,000 state aid decrease for 2010, and $55,000 less in interest on investments this year than in 2009. In addition, grants are down approximately $640,000, according to Borough Accountant Charles (Chuck) Ferraioli.
Ferraioli recommended the introduction of the budget at the June 29 special council meeting. The council can still amend the introduced budget, he said.
Ferraioli brought preliminary budget numbers to the council earlier this year, but the council wanted a budget with a tax levy that is under the cap (or ceiling) on spending increases, he said.
The state Department of Community Affairs (DCA) will review the borough's 2010 budget and "may come back with recommendations for changes on revenues and appropriations," he added.
Ferraioli said he "expects no new revenues coming from the state."
Before introducing the budget, Councilman John Speer said he doesn't feel "comfortable" with the tax levy increase.
"I don't know too many households in town that are doing 9.5 percent better than they were last year," he said. "Everybody is hurting."
Speer said when working on the budget, the council "needs a specific goal" of how to reduce the 2010 budget.
"We're running out of time, and we have to do something now," he said. "Half the year is gone."
The public hearing on the budget is set for 8 p.m. on Tuesday, Aug. 17 in Borough Hall.
Mayor Ted Taukus said he'd like to see the "outstanding" numbers regarding layoffs, unions, health insurance and so forth.
"I'm not looking to say we're taking another $100 off. I'd like to see where we're at (in the budget)," Taukus said. "It really doesn't make a lot of sense to save a few bucks and adversely affect the operations of the municipality."
E-mail: edmond@northjersey.com