Without extraordinary aid, 19-cent tax rate hike seen

Best borough scenario: 2-cent increase

By: Vic Monaco
   HIGHTSTOWN – The belt-tightening continued this week as the Borough Council held its final public budget session before the financial document’s planned introduction March 19.
   Borough Administrator Candace Gallagher told council members Tuesday that the borough is now looking at a tax rate hike of 19 cents.
   This would be a reduction from 21 cents a week earlier, if it were to receive no extraordinary aid from the state.
   At the same time, she said, she will seek $380,000 in extraordinary aid, which would lower the pending tax rate hike to 2 cents per $100 of assessed property value.
   That requested amount compares to a $200,000 extraordinary state aid award for 2006.
   The most recent reduction, Ms. Gallagher said, was made possible in large part by moving $20,000 of Public Works spending to the separate water and sewer budget and by reducing lease payments on three new police cars from $28,000 to $16,000.
   A week earlier, Ms. Gallagher had explained that she had moved about $25,000 in Public Works salaries to the water and sewer budget
   Police Chief James Eufemia also had reduced his request for four new cars to three.
   When the public budget meetings began early last month, the borough was eyeing a 25-cent hike, with no extraordinary aid.
   The tax rate rose 18 cents in 2006.
   The pending 2007 budget now stands at about $5.72 million, up from about $5.3 million in 2006.
   A 19-cent tax rate hike would raise the local purpose tax to $1.505 per $100 of assessed property value.
   That would equate to a $228 tax increase for the owner of a home assessed at the borough average of $120,000.
   The 2-cent hike — which would be possible if the borough gets all it asks for from the state — would equate to a $24 hike for the average homeowner.
   Of the total pending budget, about $2.7 million comprises salaries and wages, an increase of $92,860.
   About $1.14 million is earmarked for operating expenses, an increase of $60,016. Police-related expenditures are about $1.6 million.
   Final approval of the budget is not expected until July, after the state releases its all-important extraordinary aid figures.
   Ms. Gallagher, who last week indicated optimism at receiving double last year’s requested amount from the state, said this week that she was making no predictions.