BY SHERRY CONOHAN
Staff Writer
The Eatontown municipal tax rate would increase 6.9 cents to 92.6 cents for each $100,000 of assessed valuation under a tentative 2004 budget unveiled by the Borough Council.
The proposed budget of $17,723,462 represents an increase of $840,385, or 4.98 percent, over the adjusted 2003 budget of $16,883,077.
The amount to be raised by taxes would be $9,845,085, up $752,342 over the $9,092,743 that was raised through taxes in 2003.
If the budget is approved in its current form, the tax rate would go from 85.7 cents for each $100,000 of assessed valuation in 2003 to 92.6 cents this year, an increase of 8 percent.
Borough Auditor Robert S. Oliwa said the rate was going up more than the budget because of a decline in some revenue sources, such as interest income, municipal court fines, the general capital fund surplus and the assessment trust fund surplus, and no increase in state aid to offset it.
On a home assessed at $150,000, the increase in the tax rate would amount to $103.50 for the year. The total municipal tax on a home assessed at $150,000 would be $1,389 in 2004 compared to $1,285.50 in 2003.
The council expected to introduce the budget at its Feb. 25 meeting and is planning to hold a public hearing on the spending plan on April 14.
Mayor Gerald J. Tarantolo asked the borough’s professionals to try to reduce the budget — and tax rate increase — before it is introduced.
"I don’t think anybody’s happy with the increase," Tarantolo said. "Try to reduce it another half a cent. I like round numbers."
Oliwa noted that the proposed tax rate increase was 6.9 cents and a half cent decrease wouldn’t produce a round number. Tarantolo then said he thought it was 6.5 cents.
"Nevertheless, give it another shot," he said.
Councilman John J. Collins said that when the finance committee began work on the budget, it was looking at an increase of 9.9 cents in the tax rate. He said he thought the committee and professionals had done an admirable job bringing the increase in the tax rate down to 6.9 cents.
Collins said the figures reflect the elimination of one full-time and one part-time position and the addition of two new officers for the Police Department.
The budget framers were trying to cut an additional $50,000 from the spending plan before the Feb. 25 meeting to reduce the increase in the tax rate to 6.5 cents.
Oliwa said among the largest increases in the budget were $244,506 — from $3,681,198 in 2003 to $3,925,704 (6.6 percent) in 2004 — for police salaries; $99,685 in employee health insurance; $45,679 in workers’ compensation and other insurance, and $65,000 in the reserve for uncollected taxes.
The increase in police salaries is due to contractual obligations and the hiring of two new officers in the department.
On the revenue side of the ledger there was good and bad news for the borough.
According to Collins, the borough tax collection rate in 2003 was 98.01, a rise from 2003’s 96.88 rate. The improved rate of collection not only brings more money in to help fund the budget, but also makes it less likely the reserve for uncollected taxes will go up.
On the other hand, declining interest rates reduced the borough’s return on investments. Officials had estimated that the borough would earn $136,000 in interest for 2003, but actually received only $109,277. The 2004 budget reflects a continuation of the low interest rates and estimates $109,000 in revenue from investments.
The amount of money collected from municipal court fines also came in below expectations. The borough anticipated $525,000 in revenue from the court for 2003 but realized only $499,823. The 2004 budget projection was reduced to match last year’s collection total of $499,000 in municipal court fines.

