Attrition, wage freezes continue; layoffs possible
BY BRIAN DONAHUE
OLD BRIDGE — Mayor James T. Phillips unveiled a “transition year” budget Monday that keeps the municipal tax rate stable.
In drafting the new municipal budget, Phillips said his administration sought to ensure that taxpayers, who may already be struggling, were spared from an additional tax burden.
“People need to know that we are trying in these tough times to keep a lid on property taxes,” the mayor said.
Municipal operations have been frozen at last year’s levels in order to control spending, he said. Also, the township will continue to reduce its work force through attrition. More than a dozen positions have been eliminated over the past two years, and Phillips said that trend will continue until the economy improves.
Layoffs are possible in the building code and tax assessor’s offices, which have a reduced workload due to the decline in construction activity, he said.
“Last year there was a downturn in new construction but an upturn in people expanding and remodeling their homes,” Phillips said. “Now we’re seeing a falloff in that as well.”
He said that if employees are laid off in those areas, he would hope to restore their positions when the economy recovers.
Phillips noted that Old Bridge has been able to avoid mass layoffs and furloughs because it has prepared in recent years by reducing its work force and implementing across-the-board wage freezes.
“We’ve been able to manage the situation because we saw it coming. We’ve been downsizing and restructuring for some time to get ready for this,” Phillips said.
Though the downsizing will continue in the coming months, Phillips said there are some positions, such as school crossing guards, that for safety reasons would be filled if vacated. However, attrition is taking place in other departments, including police. The force has 105 officers but “will be able to make do” with 104 after the next retirement, he said.
Phillips said township employees have not received any wage increases since bargaining agreements with the township unions expired in July 2007. The Old Bridge PBA has appealed to a state arbitrator in the hope of being awarded cost-of-living increases. Phillips said he is not sure what the outcome will be, but noted that recent arbitration rulings in New Jersey “have been symbolic of the economic times,” resulting in zero increases in many cases.
“I will say, though, that negotiations between the township and all of its unions have been 100 percent professional,” he said. “The union representatives are trying to do the best they can for their memberships, and the administration has been working within the guidelines given to us by the Township Council. But we have not seen any work stoppages or any type of labor dispute. There’s been very professional conduct by the union leadership, and they should be complimented for that.”
The new municipal budget, he said, is the first step in an 18-month plan to protect and improve the township’s financial health amid a troubled economic climate. The budget runs for six months, ending Dec. 31, because Old Bridge is making a transition to a calendar year budget, taking advantage of a new option the state is offering to the handful of municipalities that have been operating under fiscal-year budgets.
As a result of the change, residents will receive their property tax bills once a year in June, instead of receiving a “temporary” bill in December and an actual, adjusted bill in July. “In the past it’s been a pretty confusing process, and it didn’t give residents a transparent look at what is really happening in their government,” Phillips said.
The transition-year budget is now in the hands of the Township Council, which will hold a public hearing and likely vote on its adoption by mid-September.
“This budget demonstrates sound fiscal planning. It will enable us to build reserves to help carry us through to next year,” Phillips said.
The budget marks the second time since Phillips took office in 2004 that he produced a budget with no tax increase.
The new budget, he said, reflects a commitment to public safety and recreation. The township library, where more than 450,000 books are checked out each year, and the senior centers, which provide an array of programs, services and transportation, remain fully funded.
In the coming year, Phillips’ administration will be drafting a revised master plan for the 42-square-mile township. He said the plan is to limit development while enhancing the quality of life for Old Bridge’s 64,000 residents.
The new capital budget provides funding for flood prevention and drainage improvement projects in the South Old Bridge section of the township. Officials are also moving forward with plans for the environmental cleanup and enhancement of the Laurence Harbor beachfront.
“The budget gives us the financial framework to make sure Old Bridge remains a great place for us to live and raise our families,” Phillips said.
He noted that Old Bridge has made strides this year to provide more recreational opportunities, citing construction of the YMCA and other facilities at Mannino Park, the new Lombardi Stadium at Carl Sandburg Middle School, and work done at Middlesex County John A. Phillips Park.
“In these tough economic times, to be able to increase recreational opportunities, improve the quality of life for our citizens, and provide a no-tax-increase budget is quite remarkable and truly a team effort,” Phillips said.
Early next year, Phillips will submit a new, full-year budget that will be effective for the 2010 calendar year.