FREEHOLD — A $10 million operating budget that will necessitate a projected 3.6-cent increase in the municipal tax rate was introduced at the Borough Council’s March 3 meeting.
The budget includes several new full-time positions, including a new code enforcement officer, a police dispatcher, patrolmen and an additional special police officer for the borough’s Quality of Life Enforcement Team.
The spending plan was called an "austere" budget by Mayor Michael Wilson, who said that although there will be an increase in taxes, it will be minimal.
The mayor said the increase is due in part to items such as contractual agreements and other fixed costs that cannot be altered. He said the projected 3.6-cent increase per $100 of assessed valuation could be whittled down between now and the budget’s adoption on April 1.
"Financially, the borough is in very good shape," Wilson said.
This year’s municipal budget will total $10.03 million, a figure which is up $484,000 from the 2002 budget of $9.5 million. The spending plan will raise the municipal tax rate from $1.047 to $1.083 per $100 of assessed valuation, although additional state aid could help reduce the increase, Bellina said.
If adopted by the council, the budget means the owner of property assessed at $120,000 will pay $1,300 in municipal taxes in 2003, up from $1,256 in 2002. The owner of property assessed at $150,000 will pay $1,624, up from $1,570.
The 2003 budget proposes the collection of $5.2 million in local taxes to support the spending plan. In 2002, residents paid $5 million to support the budget.
Bellina said the projected 3.6-cent increase in the tax rate would most likely see a reduction after the town applied for a grant for extraordinary aid.
"Our need for aid is easy to justify based on the costs incurred by the quality of life court sessions," Bellina said. "When you apply for these grants, you need something to distinguish yourself from every other town. In all likelihood, the aid will reduce that [tax increase]."
Bellina explained that depending on the amount of extraordinary aid the state provides, the 3.6-cent tax increase could be wiped out altogether, be significantly reduced or slightly reduced.
"The worst case scenario is that it remains the same," he added.
Insurance costs are up $175,000 over 2002, according to Bellina. This constitutes a 20 percent jump. He added that the worker’s compensation fund will see an increase of $50,000 this year as well.
The new year has also seen the payment of the town’s first $30,000 annual lease payment for the new police department headquarters in the Rug Mill Towers.
The proposed debt service for the 2003 budget is $400,000, which Bellina said is less that 10 percent of the budget, a percentage, he said, that was "pretty good."
A public hearing on the budget will be held at Borough Hall on April 1.
— Clare Marie Celano