MANVILLE: Borough looking for flat budget

By Audrey Levine, Staff Writer
Despite state aid cut, officials stay hopeful
   Despite a proposed loss of $30,700 in total state aid, borough officials say they are still looking to write a budget with as little municipal tax rate increase as possible for 2009.
   The budget is scheduled to be introduced within the next 30 days.
   ”We took a hit last year, with the money from the sale of the water company (to Elizabethtown Water Co. ) gone,” Mayor Lillian Zuza said. “But we’ve done a good job keeping expenses down while still supplying services.”
   Gov. Jon Corzine announced his proposed $29.8 billion 2009 state budget March 10, which included cuts in state aid to municipalities.
   In total, Manville will receive $2,022,609 in state aid, as opposed to $2,053,407 in 2008, if the state budget is approved.
   ”That’s not that big of a cut,” Borough Administrator Gary Garwacke said. “It’s about one-third of a tax point (difference) for us.”
   Councilman Ted Petrock, chair of the finance committee, has announced at past Borough Council meetings that all borough departments have been asked to cut their budgets by 10 percent this year.
   ”We are going to cut that 10 percent,” he said Tuesday. “Each department had no problem with that.”
   In terms of consolidated municipal property tax relief, the borough is expected to receive $1,210,784, a decrease of about $153,000 from 2008, when it received $1,363,692.
   On the other hand, the total Energy Tax Receipts distribution will increase about $122,000 from 2008, to a total of $811,811.
   The Energy Tax Receipts program is not a municipal aid program. The money is generated by sales and taxes on energy or utility service, among other services. The funds are collected in a special, dedicated fund by the state, then distributed to municipalities.
   The numbers, Mr. Garwacke said, were gathered by the state based on the size and wealth of the town itself.
   With the already-determined cuts to department budgets, and the small decrease in state aid, Mr. Petrock said residents should be pleasantly surprised when the borough’s budget is introduced.
   ”Barring any major catastrophes, it looks like we are on the path to zero percent,” he said. “We have things to accomplish, (and) we are very optimistic.”
   Aside from lowering department budgets, Mr. Garwacke said the borough has been looking into more ways of cutting back, including not hiring summer help and not replacing a retiree from the Department of Public Works.
   In addition, the borough has instituted a hiring freeze, and, in 2008, stopped several shared service agreements in the Building Department, in favor of hiring part-time workers. This action, he said, saved the borough about $60,000.
   ”These are just areas we are cutting back on,” he said.
   In addition, Mr. Garwacke said, the borough probably will opt to take advantage of a bill approved by the state Legislature on Monday to allow municipalities and school districts to delay half of their payments to the public employee pension system.
   The bill, Mr. Garwacke said, allows the borough, if approved, to defer 50 percent of the costs this year, to be paid back over the course of 15 years.
   ”We will probably take advantage of that,” he said.
   Aside from these plans, Mr. Garwacke said, the borough is in good shape for introducing a budget, which, once some final mechanics are worked through with the state, should be ready for introduction within about 30 days.
   ”We are pretty much done with it,” he said. “I think we’re going to do well this year.”