Borough councilman’s aim: no tax hike
By Sean Ruppert, Staff Writer
HIGHTSTOWN Borough Councilman Dave Schneider presented a plan for a zero-tax-increase budget Thursday, but found little support for a key provision in it from the rest of the council.
The borough is facing a shortfall of more than $600,000, the equivalent of an approximate 28-cent hike in the tax rate under last year’s property valuation.
Mr. Schneider’s plan involved cutting $154,660 from the amount budgeted for more than 80 line items, and using $459,240 of the borough’s $550,940 water and sewer surplus as revenue.
“I believe that the cuts I have made are within reason,” he said.
Mr. Schneider received a mix of opposition and support from his fellow council members on his proposed cuts. However, no one voiced support for the idea of using the water and sewer surplus in the municipal budget. Councilman Jeff Bond spoke the most strongly against that idea.
“It is criminal,” Mr. Bond said. “I would be one to fight this one until the cows come home. You are robbing Peter to pay Paul, and that’s all we’re doing.”
The water and sewer surplus was created through the collection of connection fees, which are a one-time fee paid by owners of newly constructed buildings when they first hook into the water system, Councilman Bond explained. The money is supposed to be used for infrastructure improvements to the systems, he said.
Mr. Bond said the surplus was much higher than normal this year because of some new development, including an expansion at Meadow Lakes, that came on line; meaning that it was unlikely that it could be regenerated. He added that the borough would have to use bonds for any future water and sewer improvements, which would cost taxpayers more in the end than using surplus.
“I think you did an excellent job with all of these cuts until you got to the biggie,” Mr. Bond said. “You are basically taking money away from the water and sewer ratepayers and putting it into the budget.”
Mr. Schneider defended his cuts saying that the borough’s planned application for extraordinary aid from the state might be negatively affected by the fact that Hightstown has so much water and sewer surplus that is not being used. He added that spending the money this year would make extraordinary aid unnecessary this year, and improve the borough’s odds of getting it next year.
Mr. Schneider’s proposed cuts are largely bringing line items down toward their actual 2008 spending figures.
George Lang, the borough’s chief financial officer, disputed this notion, saying he didn’t believe that the water and sewer surplus would affect the extraordinary aid application.
Mr. Lang and Borough Administrator Candace Gallagher also expressed some displeasure with some of Mr. Schneider’s suggested cuts.
Ms. Gallagher said the departments are already run very efficiently; coming in under budget and creating municipal surplus that can be used as revenue in the following year. She said Mr. Schneider’s proposed cuts could greatly reduce the surplus generated throughout the year, or even cause the borough to run a deficit, which would result in an even more dramatic tax increase in years to come.
“Our department heads do not waste money,” Ms. Gallagher said.
Councilman Mike Theokas said the borough needs to focus on more substantive cuts.
“We need to differentiate between money budgeted and money spent,” Mr. Theokas said. “We aren’t looking for a one-year deal here. We are looking to set up a foundation for future budgets.”
He called the plan “voodoo-” and “magic-trick-” economics.
The council will meet again to discuss the budget at 7 p.m. Tuesday and 8 p.m. Thursday at Borough Hall. The meetings are open to the public.
For the latest on budget talks, return to centraljersey.com and read this week’s printed edition of the Windsor-Hights Herald.

