By Linda Seida, Staff Writer
LAMBERTVILLE — The $4.05 million budget introduced Tuesday will raise municipal taxes by about $114 for the average homeowner if the City Council adopts it as is next month.
A few belt-tightening moves have been proposed because of the city’s tight finances, but, at the same time, officials also said they want to recognize city employees’ dedication with a small pay raise.
A public hearing to discuss the budget will be held Aug. 14 at the Justice Center at 25 S. Union St.
The spending plan calls for 18 full-time city employees to receive a 1.5 percent pay hike for the remainder of 2008, retroactive to July 1. The raises will total $10,069.67.
”We certainly don’t have highly paid individuals, but they are very dedicated individuals,” Councilwoman Cynthia Ege said.
Mayor David Del Vecchio said Wednesday morning, “There were people on the governing body who thought they have to pay the same energy increases we have to, so they should get something.”
Council members and the mayor declined to take any salary this year, a decision Mayor Del Vecchio has held to for most of his 17 years in office. Councilman Ronald Pittore has done the same. The cumulative savings would be less than $10,000.
”It’s minimal, but it adds up,” council President Steven Stegman said.
”It helps to pay expenses,” Mrs. Ege said.
Also, the Board of Fire Commissioners has waived the $10,000 it traditionally receives from the city. The mayor said the commission “ought to be applauded.”
The city anticipated losing more than $450,000 because of proposed reductions in state aid. A portion of the aid was restored later, but it left the city still shy of last year’s aid package by about $154,000.
That shortage plus higher bills in the areas of state-mandated pension payments, fuel and utilities left the city starting off about $250,000 short, Mayor Del Vecchio said.
In addition to the proposed tax hike, the city increased parking meter hours and sold a parking lot at auction to help make up the difference.
”Just like all of you, we have a whopping $41,000 increase in our utilities,” Mayor Del Vecchio said.
Utilities jumped from $106,262 in 2007 to $147,850 in 2008.
”Anyone with an idea on how to do something more efficiently, we have open ears,” the mayor said.
The city’s obligation to the public employees’ pension fund will rise from $63,503 to $92,369. The obligation for the police and firefighters’ pension fund will rise from $55,244 to $76,532.
The budget carries a tax levy of almost $1.48 million. That’s the amount to be collected through local taxes. Last year’s tax levy was $1.45 million. The tax rate would be 20.1 cents per $100 of assessed value.
For the owner of a house assessed at the average of $367,100, the tax bill for municipal services would be $737.87, an increase of $144.32.
Last year, the tax rate was 17.3 cents per $100 of assessed value. For the owner of a property assessed at the average of $360,433, the property tax for municipal services was $623.55.
The budget normally is adopted by March. It was delayed this year as the city waited for a final announcement of its aid package.
Because the budget is so late, tax bills will be delayed. Taxpayers will be given a grace period.
