BY VINCENT TODARO
Staff Writer
SPOTSWOOD – The borough has been awarded $75,000 in state extraordinary aid, enough to reduce this year’s municipal tax rate hike by about 1 cent.
The $8.33 million municipal budget for 2007 is still expected to raise the tax rate by 6 cents, or $150 on the average home, assessed at $250,000.
Borough officials had requested $250,000 in state aid, but the state was deluged by requests and had a smaller amount of money to give out this year. Borough Council President Curtis Stollen said the $75,000 figure was about what they expected.
“The state wants to start having people get relief from property taxes, but we don’t have the tools to control our expenses,” he said.
He described the 2007 municipal budget as a maintenance budget that includes no new items. Among the factors driving the increase are increased pension and health care payments, as well as contractual salary and wage increases.
The Borough Council approved the budget during an emergency meeting Tuesday morning.
Taxpayers may be confused after not receiving their tax bills as usual by Aug. 1. Stollen said the borough decided against using estimated bills this year, and will send out the actual bills shortly. Sending out anticipated bills, in addition to the actual ones, would have only cost more money.
“That’s an expense for us,” he said.
The borough was able to budget its funds so the infusion of taxpayer money was not needed in July to help pay this year’s budget.
Stollen said managing the budget is difficult in Spotswood because the town is “pretty much built out,” and new commercial tax ratables are hard to come by. However, it is a benefit that new homes cannot be built, since they are a drain on school taxes.
Borough officials are hoping that Middlesex County will purchase and preserve one remaining large tract in town that has already been given approval for several new homes.
Stollen said borough officials work hard during contract negotiations “to get the best deal for taxpayers,” but labor and benefits costs are still the highest part of the municipal budget.
Despite the town not getting all the requested aid, Stollen said he was happy to see some extraordinary aid come through.
“They could’ve pulled the plug on the program and we’d have gotten nothing,” he said. “It could have been worse.”
Mayor Barry Zagnit said he was thankful for the support of state Sen. Barbara Buono and Assemblymen Patrick Diegnan and Peter Barnes III (all D-18) in securing the $75,000.