Mayor: ’02 budget will keep
Freehold running smoothly
Municipal tax rate
projected to rise 1.8¢
FREEHOLD — Borough residents can expect a 1.8-cent municipal tax increase per $100 of assessed valuation this year which, according to Mayor Michael Wilson, is "well below the cost of living."
The 2002 budget was introduced at a special council budget meeting on March 12. Wilson said the stable budget will show residents the town is "running well" and that it is in good financial shape.
"It’s good to see the revenue coming in from all the work we’ve done here over the years," Wilson said. "This is a good budget."
Freehold Borough’s 2002 municipal budget will total $9,544,500, an amount which is up $536,807 from the 2001 budget of $9,007,693, according to figures provided by Borough Administrator Joseph Bellina.
The tax rate for municipal purposes will rise from $1.028 to $1.046 per $100 of assessed valuation. The owner of a home assessed at $135,000 can expect to pay about $1,412 in municipal taxes in 2002, up from $1,387 in 2001. The owner of a home assessed at $200,000 will pay about $2,092 in municipal taxes in 2002, up from $2,056 in 2001.
Municipal taxes are one portion of a property owner’s overall tax bill. The tax bill also includes Freehold Borough school district taxes, Freehold Regional High School District taxes and Monmouth County taxes.
The borough budget has proposed the collection of $5,064,538 in local taxes to support the 2002 budget. In 2001, the local tax levy was $4,824,368.
Bellina presented highlights of the proposed budget to council members at the meeting.
Items discussed were total salaries and wages, which saw an increase of $380,000, going from $3,848,106 in the 2001 budget to $4,226,100 in the proposed 2002 budget.
In a budget message, officials said the primary reasons for the increases in salaries and wages "can be attributed to salary and wage increases which were established through the collective bargaining process, health insurance premium increases determined by the state of New Jersey Health Benefits Program, as well as the astronomical increases to all other insurance premiums."
Bellina remarked that the town’s labor pool will remain essentially the same.
"Health insurance is up $200,000 this year. Everyone all over is feeling this," Bellina said, referring to the events of Sept. 11 which have had an enormous effect on many areas of the economy. "[Workers] compensation saw an increase of $30,000. We also had a horrendous loss ratio primarily due to the injured police officers we’ve had in the last couple of years, but this is the cost of doing business in safety."
The Police Department salaries and wages will rise from $2 million to $2.2 million this year, while the department’s other expenses will rise from $139,750 to $146,100. The department will also make use of grants to be received from various agencies and jurisdictions.
Officials noted that the borough will be occupying its new police headquarters and municipal court in the rug mill complex, Center and Jackson streets, during the spring. The borough is obligated to pay an annual rental premium of $17,500.
Borough officials also noted that the renovated rug mill complex is back on the tax rolls and is expected to contribute to the town’s revenue stream.
Another department that saw a substantial increase, according to Bellina, was refuse collection. According to the administrator, the collection portion increased as per contractual agreement with Freehold Cartage Inc. The borough recently received notification that the disposal expenses will be increasing by approximately $4 per ton on April 1.
Buildings and grounds saw a $10,000 increase, due to the proposed demolition of a house on Center Street which has been deemed unsafe by the code enforcement department.
According to Bellina, capital outlay is budgeted at $30,000 which he said would include road work for Spring, Kiawah and McLean streets, as well as the addition of some new equipment for the road department. He said he was confident that work on these projects would begin in late spring or early summer.
The proposed budget appropriates $40,000 for parks and recreation and $24,000 for the Freehold First Aid and Emergency Squad.
The 2002 budget has a debt service amount of $191,652, which is a decrease from last year’s figure of $267,095.
A public hearing on the budget has been scheduled for 7 p.m. April 18 at Borough Hall.