Taxes might rise just $2 for city property owners

The proposed budget is $3.9 million, but depends on Lambertville getting "extraordinary aid" of $200,000 from the state.

By: Linda Seida
   LAMBERTVILLE — Municipal taxes for the average homeowner would increase by less than $2 a year if Lambertville receives enough state aid, while city employees would receive a 3 percent pay raise, said Mayor David Del Vecchio.
   The proposed 2007 budget is $3.9 million, an increase of about $200,000 over the 2006 budget of $3.7 million. The tax levy, which is the amount raised through local taxes, would be $1,144,571.
   The owner of a property assessed at the 2007 city average of $360,433 would pay $576.69 a year for municipal taxes. In 2006, the owner of a home assessed at the average of $330,775 paid $575.55 a year.
   The new tax rate would be 16 cents per every $100 of assessed valuation. Last year the tax rate was 17.4 cents per every $100 of assessed valuation.
   The mayor and the City Council are expected to introduce the budget Monday. The city will submit its application for aid the following day to meet the state’s March 23 deadline, but the state will not announce "extraordinary aid" awards until June, according to City Clerk Lori Buckelew.
   Although statewide aid figures already have been released, municipalities meeting certain criteria can apply for extraordinary aid as well if they have fiscal problems caused by circumstances beyond their control.
   Lambertville is asking the state for $200,000 in extraordinary aid to help offset the expenses incurred from three floods in a period of 22 months, Mayor Del Vecchio said. The most recent flood occurred in June 2006.
   If Lambertville fails to receive state aid, city officials plan to make budget cuts to ensure taxes do not rise steeply, according to Mayor Del Vecchio.
   "If we don’t get extraordinary aid, we’re back to the drawing board," he said.
   If no aid is forthcoming from the state, and officials fail to make budget cuts, taxes would rise more sharply.
   "Which is not going to happen," Mayor Del Vecchio said.
   That scenario would mean a tax levy of $1,344,571. The tax rate would jump to 18.8 cents per every $100 of assessed valuation. The owner of a home assessed at the average of $360,433 would pay $677.61.
   Among the reasons for the budget increase are higher required contributions to pensions for public employees, firefighters and police, and the funding of the public library. The library will receive a higher amount in 2007 based on a state formula that allocates a percentage of the city’s assessed property values, Mayor Del Vecchio said.
   As the budget stands now, state aid is up $13,328 over 2006 for a total of $694,370.
   "It doesn’t solve our problems, but it’s a nice bump," Mayor Del Vecchio said.
   The city’s contributions to the public employee pension fund would rise from $30,411 in 2006 to $63,503 in 2007. The contribution to the police and firefighter pension fund would increase from $24,439 in 2006 to $55,243 in 2007.
   The Lambertville Free Public Library would receive $243,332 in 2007. In 2006, $211,593 was budgeted for the library.
   Also, police salaries and wages would rise to $828,890 in 2007. They were budgeted at $784,063 in 2006, but the actual amount paid was $810,905.
   Other expenses for the Police Department will rise to $72,943 in 2007, which include a new leased vehicle, firearms, office supplies, seminars and training, Mayor Del Vecchio said. The amount budget for police expenses in 2006 was $67,268, but the department actually spent $70,053.
   While most employees are expected to receive a 3 percent raise retroactive to Jan. 1, Public Assistance Director Bambi Kuhl is slated to receive 3.8 percent. Among her duties, Ms. Kuhl finds lodging for families and individuals displaced by fires and floods. Her new salary would be $13,500.
   "Bambi goes over and above and is called out at all hours of the day," Councilwoman Cynthia Ege said.
   Sources of revenue include $78,500 from fees and permits, $225,000 from municipal court and $188,490 from parking meters. The hotel tax is expected to bring in $98,662.
   Officials also are considering implementing another new fee to bring in more revenue. A new ordinance is under consideration that would set the fee for a civil union or marriage ceremony at $100. Proceeds would go toward the city’s parks through the establishment of a recreation trust fund. The council is expected to introduce the ordinance Monday.