State’s aid to borough means 12-cent tax hike

By: Vic Monaco
   HIGHTSTOWN – The borough got a nice, big gift this week.
   It just wasn’t what it was hoping for.
   The state awarded Hightstown $150,000 in extraordinary aid — $50,000 less than last year and far less than this year’s borough request of $380,000.
   The result: a 12-cent increase in the local purpose tax rate, which is expected to be approved along with the municipal budget Monday.
   The tax hike will raise the local purpose tax to $1.435 per $100 of assessed property value. That would equate to a $144 tax increase for the owner of a home assessed at the borough average of $120,000.
   Borough officials said they were disappointed when the state announcement was made Tuesday.
   Administrator Candace Gallagher said she appreciated the aid that was awarded but "we wouldn’t have asked for money we didn’t need."
   Borough Council President Walter Sikorski said, "I had anticipated a larger amount, based on our presentation and our needs."
   Mayor Bob Patten also spoke about the presentation borough officials made to representatives of the state Department of Community Affairs in seeking the $380,000.
   "We tried the best we could do to argue for our application and it was really well-received by the DCA but there were a lot of communities out there seeking extraordinary aid," he said.
   Of 108 communities seeking extraordinary aid, 80 were awarded a total of $17.7 million, said DCA spokesman Chris Donnelly, who added that the state budget included $9 million less this year than last for that purpose.
   Mr. Patten said the 12-cent tax hike represents a 9.5 percent increase.
   "Coupled with the school tax, it’s an impact that’s not favorable to any property owner," he said. "But we’re doing everything we can do to keep our costs down. We’ve just got to keep searching every day for ways to save money and be efficient."
   The borough has made the November 2003 closure of the Minute Maid plant a focus of its extraordinary aid request for several years, citing the tax revenue it has lost. Mayor Patten said "it’s hard to say" if the state’s financial response this year was a commentary on how long that hardship could be cited. But he said he believes it does speak to the Borough Council’s need to take action on plans to redevelop the Minute Maid property and the former rug mill plant.
   "It sends a message that we’ve been sitting on this mill project and we haven’t gone anywhere with that, and that’s a gold mine," he said. "Then we’ve got the Minute Maid property, where the owners have given a conceptual development plan.
   "The writing is on the wall that the borough is going to do well in the near future with new tax revenue but we’re at a lull right now. Maybe the message should be … that the Borough Council has to start moving on this stuff."
   The mayor said talks are continuing with the owner of the mill property, John Wolfington, and he thinks the council is "leaning toward naming him" the redeveloper. Mr. Wolfington was previously named conditional redeveloper but that designation lapsed as he continually increased the number of residential units he said he wants to build on the 7-acre tract.
   The budget to be approved Monday night by the Borough Council totals about $5.72 million, up from about $5.3 million in 2006. Ms. Gallagher has described about $1.87 million as uncontrollable costs.
   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 total about $1.6 million. Borough leaders continue to meet with East Windsor officials over the possible merging of the borough Police Department. (see story on Page 2A)
   The borough was looking at a potential tax hike of 19 cents if no extraordinary aid was awarded. A $380,000 award would have resulted in a 2-cent increase.
   Tax bills, with the 12-cent increase, are expected to be mailed by mid-month, with residents having 25 days to pay.