State aid hepled, but $450,000 gap remains
By:Alec Moore
Borough officials are hopeful that they will be able to keep municipal taxes flat or near flat this year, but to do so, they will have to make up a $450,000 budget shortfall in the borough’s $9.8 million budget, introduced in March.
In applying for state aid, borough officials had hoped to receive at least $750,000 and requested $1.2 million, but learned last week only $300,000 would be coming from Trenton.
That leaves $450,000 to be made up one way or another.
Under the proposed budget which did not include the $750,000 in state aid Manville’s municipal tax rate would increase by 52 percent, giving the average homeowner in town with a home assessed at $150,000 a $591 municipal tax increase.
The municipal tax rate would increase from 67 cents per every $100 of a home’s assessed value, to $1.02 for an average bill of $1,530. If borough officials succeed in delivering a zero percent tax increase the boroughs’ tax rate would remain 67 cents, costing the average homeowner in town $939 for the municipal portion of their tax bill.
"Now we’re looking at about $450,000 in cuts," said Councilman Tom Weiss, who chairs the council’s Finance Subcommittee.
Mr. Weiss said the borough will most likely make up the budget gap through a series of budget cuts and by tapping Manville’s sewer utility surplus and the money gained from the sale of the borough’s former water company to Elizabethtown Water Co.
He expects the borough to tap into its regular borough surplus as well.
This year’s $9.8 million budget already includes $200,000 from the sewer utility surplus and $500,000 from money gained through the sale of the water company. Mr. Weiss says the borough will draw upon more from both sources if necessary.
He pointed out that the borough’s auditors are currently reviewing the budget and plan to make their recommendations as to how much additional money will be taken from the surplus accounts and how many additional budget cuts will be required.
"It’s probably going to be a little bit of everything," said Mr. Weiss. "If there is an increase it will be a minimal one, but we’re trying for a zero increase as long as we can do that without damaging next year’s budget."
In response to the borough’s plan to make up the $450,000 budget gap, Councilman Martin Wierzba said he is opposed to using any money from the sewer utility surplus. Earlier this year Mr. Wierzba called for the borough to lower its sewer rates by $40 annually for residents, an idea that Mr. Weiss said the Finance Subcommittee was also looking into.
Mr. Weiss said he expects the council to adopt the budget before Aug. 1, at which time tax bills are slated to be mailed to residents.