by Melissa L. Gaffney, Special Writer
MILLSTONE — Township officials are preparing to introduce a 2009 municipal budget that would reduce spending by about 4 percent and likely maintain the tax rate.
Township Administrator James Pickering said the preliminary $6.7 million budget was accomplished in large part with a minimum 5 percent reduction in operating costs for all departments.
In addition, non-union employees would be getting no salary increases.
The Township Council examined the early financial plan during a workshop meeting April 22. Formal introduction of the budget is scheduled for the Township Committee’s May 6 meeting.
Chief Financial Officer Annette Murphy said Millstone residents could see a tax rate very similar to the current rate of about 9 cents per $100 of assessed property value. For a homeowner assessed at the township average of $408,500, the preliminary tax rate would represent a municipal tax bill of nearly $370.
Mr. Pickering said the upcoming budget also takes into consideration several increases and decreases, including:
• a 6.9 percent reduction in the township’s health care benefits payment, mostly as a result of reducing the township work force;
• reduced field maintenance costs for all township parks, down about 16 percent;
• a reduction in state aid of nearly $33,000;
• a 26 percent increase, from about $92,000 to $116,752, in the Public Employees Retirement System pension contribution payment;
• a nearly 12 percent increase in the 9-1-1 dispatch fee to Monmouth County; and
• an increased cost in utilities for municipally owned properties, up about 6 percent from 2008.
Additionally, Mr. Pickering said major revenue changes included a $10,000 decrease in municipal court revenue, a number he said has gone down four of the past five years, and a $200,000 decrease in the township’s investments. With the poor market conditions, Mr. Pickering said the administration aggressively sought more competitive interest rates where investments were concerned.
Internally, the township cut back operating costs across the board, the administrator said. Mr. Pickering said the goal was to decrease operating expenses by at least 5 percent in every department. Some departments posted preliminary savings up to 30 percent or more, including the Tax Collection, Zoning and Emergency Management departments, according to a budget presentation. The Open Space Department posted a 60 percent reduction in operating costs, Mr. Pickering said.
The administrator said the township is taking other cost-saving measures to ensure stable financial conditions, as well, which include:
• flexible employee hours;
• continual review of township fees for items such as permits;
• cooperative purchasing through Monmouth County and with other municipalities;
• tighter controls for any purchase requisition, which now requires three authorized signatures; and
• a cutback on training that requires overnight accommodations.
While some municipalities are taking Gov. Jon Corzine’s offer to defer payments to the pension contribution system, Mr. Pickering said Millstone will not. Although the 2009 payment represents more than $116,000, which is a 26 percent increase from last year’s payment, the administrator said it would cost the town less to simply pay off the full amount this year.
”If we opt to pay 50 percent now and 50 percent (during) 2010, there would be a charge of an additional 8 percent in interest added on the back end,” Mr. Pickering said during his presentation.
The township also is actively seeking grants and other funds in order to support some of the community’s programs and initiatives, Mr. Pickering said. He said grants already received include a solar energy grant for more than $240,000 and a $190,000 state Department of Transportation grant for use in the township’s road program.
Deputy Mayor Bob Kinsey pointed out, this year’s budget, being “thin by design,” would allow Millstone to “take a breath” and “take a pass” on certain expenditures, capital or otherwise.
”It’s a bare-bones road program,” Mr. Kinsey said. “It’s a $250,000 program, which includes the $190,000 grant. The township is supplying only $60,000 of our own funds.”
Mr. Kinsey also said there would be no additional money spent on Public Works equipment this year.
Non-union employees would not be receiving pay increases during 2009, either, and Councilman Fiore Masci said it was difficult asking employees to take on additional work without additional pay.
”The people who work for our town work hard,” Mr. Masci said. “They’re going to be taking on additional workloads.”

