Council formally introduces budget
By Sean Ruppert, Staff Writer
HIGHTSTOWN The Borough Council this week unanimously introduced a $5.9 million spending plan that would raise taxes by the equivalent of 14.7 cents under last year’s property assessments before a recent revaluation.
The financial plan will have to go through a public hearing May 18 before it can officially be adopted, and still could be changed before it is approved.
”We can continue to work on it, and we can continue to make adjustments,” Borough Administrator Candace Gallagher said at Monday’s council meeting.
As introduced, the budget calls for a tax rate of 75.6 cents per $100 of assessed value, under the new valuation. That means that the owner of a home assessed at the borough average of $270,500 would pay $2,045 in municipal taxes, about $136 more than in 2008.
The council met a half dozen times to publicly hash out the spending plan, which began with an over $600,000 shortfall and a tax increase of about 28 cents under the old valuation. The elimination of a request to hire two new police officers and the decision to defer half of the borough’s contribution into the Public Employees’ Retirement System and Police and Firemen’s Retirement System were among the biggest spending reductions during the process.
Among the largest rises in costs were contractual salary increases and the cost of employee health insurance. The borough is set to pay $486,500 for health insurance in 2009, a $127,400 increase over what was budgeted in 2008.
”I’m not necessarily happy with the result, but I think that the process was a good one,” Council President Walter Sikorski said Monday.
He added that the council should still consider furloughs and layoffs before finalizing the budget. The budget as introduced calls for neither.
Councilman Larry Quattrone shared Mr. Sikorski’s reservations about the spending plan as it currently stands.
”I am ready to introduce. I am not ready to accept,” he said.
The council’s last best hope for significantly reducing the tax burden further in 2009 is its planned application for extraordinary aid from the state. The application is due by April 15 but could not have been submitted prior to the introduction of the budget.
In 2008, the borough received $200,000 in extraordinary aid, which lessened the tax rate increase by a little more than 9 cents, to 15 cents.
During its budget discussions this year the council actually reversed its position on deferring half of the borough’s required contribution to the pension funds. The council members had previously dismissed the idea rejecting it by 5-1 in an informal vote but changed their minds and unanimously accepted the deferral after Ms. Gallagher told them that the state would likely limit extraordinary aid if they did not participate.
The deferral will shave $175,954 off the tax levy about 8 cents on the tax rate under the old valuation. However, the borough will have to make up this amount with its regular pension contributions over the next 15 years, with interest.
The council also is still hoping to save some money on emergency medical services, which it contracts from Robbinsville. Hightstown pays Robbinsville about $208,000 to cover the borough during the day and most nights. It received $26,319 in reimbursements in 2009 for a net cost of about $182,000.
The council is reviewing options presented by Robbinsville for reducing its costs that have not yet been made public. Robbinsville Mayor Dave Fried, who did not return a call this week, previously said one suggestion is to have the ambulance stationed, at least part of the time, in Robbinsville.
The council also is considering other options for increasing revenue like hard billing charging those who’s insurance does not cover the full cost for EMS service and charging residents for the pick-up of bulk trash items.
Councilman Mike Theokas elected for the first time in November said the process has given him new insight into one of the borough’s most divisive issues.
”I’ve been a proponent of consolidation for years, but I went into this with an open mind,” Mr. Theokas said. “It did not change my opinion. If anything, it enforced it.”
He added that the council should make working toward consolidation with East Windsor a high priority.
Mr. Sikorski shared Mr. Theokas’ assessment.
”We should not be afraid to consolidate,” Mr. Sikorski said. “It is the only financially viable way to move forward.”
A total budget figure of $6.08 million was recently reduced to $5.9 million with the removal of some grants that have not yet been confirmed. The grants for programs like “Click It or Ticket,” which would not be run without the extra funding are added to both the appropriations and revenues. So while the total budget number was reduced, the tax rate is unaffected.