No Property Tax Increase in Current Borough Budget

The borough Finance Committee officially proposed its budget for 2010 at a public hearing Tuesday, saying its plan, as is, includes no property tax increase.

Both the council and the public in attendance met the near $13.8 million budget with tempered optimism, as Gov. Chris Christie's proposal from earlier in the day could force the borough to alter the new budget before it is adopted in May.

Still, borough officials said they were excited about the prospect of keeping taxes at their current level.

"A zero percent tax increase would be terrific for the people of this town," said Budget Committee Chair and Council President James Collander. "We're trying to do our best for the people, but we're also trying to do it responsibly."

The strict limitations Christie has proposed in order to get state spending under control would make it more difficult for towns to balance their budgets if they do not plan adequately this year. Borough Administrator Bob Falzarano and Chief Financial Officer Tammie Kopin said they constructed the 2010 budget with the potential shortfalls of 2011 in mind.

"We are starting the year with the lowest projected revenues [in nine years] since I've been here," said Falzarano.

Kopin warned that borough agencies would not be allotted as much money next year as they have been in previous years.

"Almost every department is hit with a decrease," said Kopin, who also emphasized the fact that no borough employees will lose their jobs. She also said no police, fire or Department of Public Works services will be reduced.

According to the council, a large part of the overall positive fiscal outlook of the borough going forward in 2010 is due to the town's change in its employee health insurance provider.

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 its previous provider, Horizon, will save the borough $262,000 this year.

"Employees are covered to pretty much the same extent under new policy as the old one," said Councilman James Lonergan.

Borough officials also said they would work to share services with neighboring towns such as Madison so certain departments and offices collaborate between municipalities. Specifics regarding those shared services will be presented at the next Borough Council meeting on Monday.

Joe Mikulewicz, a former Council Member, raised the public's primary point of contention with the proposed budget—its decision to dip into the borough's account of excess funds in 2010. The borough plans to use $236,000 of those funds.

He said he feels the council should do more to think outside the box when it comes to the dilemma of providing services to residents.

"I'm glad to see the council's two year approach with 2010 and 2011 but I am disappointed about the borough reserves facing short falls in 2011," he said.

Mikulewicz said he does not want the council to fall into a habit of dipping into emergency money whenever there are questions about the direction of state government.

Still, council members praised the budget process.

"We've accomplished quite a bit this year for the taxpayer," said Collander. "There isn't a town in the state that can put together a budget based on what the governor might do. It's not practical. We were able to get a lot done this year and going into next year we have confidence because of what we have already accomplished."

Councilman Joseph L. Marts took time near the conclusion of the meeting to praise town staff and employees for what he called "hard work and sacrifices" to get budget done.

The council will discuss the budget further at its meeting Monday. It plans to introduce the budget on April 12, advertise it by April 22 and adopt and implement it by a May 10 meeting.