Borough to Use $236K in Excess Funds in This Year's Budget

The borough is planning to use $236,000 in excess funds in its budget this year, according to Budget Committee Chair and Council President James Collander.

At a Borough Council meeting, Collander said the committee has been meeting frequently to hash out budget details. Part of the plan is to include the excess funds in this year's budget.

The reason the committee has decided to do so, Collander said, can be attributed in part to the state's deficit this year. The borough is not expected to receive as much as it usually does in state aid for 2010, and as a result, will have less money for its departments and programs.

When it uses the $236,000, the borough will be left with $2.4 million in excess funds.

"I think we are being prudent in taking from the reserve," Collander said.

Borough Administrator Robert Falzarano said by next January, the borough's Shared Services Committee will need to decide on cost-saving measures it wants to implement. Those measures are intended to offset the money the borough is planning to take from its reserves.

Not everyone at the meeting agreed with the borough's decision. Former Councilman Joseph Mikulewicz, who now serves on the borough Planning Board, said he felt the borough should conserve money from that fund as much as possible. Who knows, he said, what state aid numbers will be like in 2011—or even 2012. He said he was concerned those numbers could be even worse.

"That's what I'm worried about," Mikulewicz said.

Collander said the borough couldn't worry about what the state might do in future years.

"We only have jurisdiction over ourselves," he said.

The borough will also save money this year by changing health insurance coverage for its employees. It will use the North Jersey Health Insurance Fund this year, through which employees will be able to participate in either Aetna or United plans.

The switch from Horizon will save the borough $262,000 this year.

The budget, however, is far from finalized. The Budget Committee will continue to meet, and a budget does not need to be formally adopted for the next several months.