By Matt Chiappardi, Staff Writer
ROOSEVELT The Borough Council recently introduced its 2009-2010 budget, which carries a 10-cent tax rate increase. But the budget must still be approved by the state Department of Community Affairs because it is more than $100,000 above a state-imposed tax levy cap.
The $1 million budget, introduced by the council in July and scheduled for adoption at its next meeting, Sept. 14, would bring the local tax rate to 63 cents per $100 of assessed valuation, said George Lang, the borough’s chief financial officer.
That means a resident with the average property assessed at $285,201 would pay $1,797 in local taxes if the budget is adopted.
When the borough put its budget together it wound up being $123,420 above the tax levy cap, Mr. Lang said.
That’s because the borough received a waiver last year for $55,000 over the cap, with that amount counting as an expenditure when the new fiscal year begins, Mr. Lang said. It also had about $50,000 in extra expenditures due to rising prices of things such as fuel and utilities, and a $32,000 reduction in state aid.
Other than those figures, Mr. Lang said the budget is “very similar” to last year’s.
The budget is scheduled to go before the DCA Wednesday. If the state does not grant a wavier, the borough will be forced to cut the difference from its budget or find some revenue to make up for the amount that is over cap.
However, Mr. Lang said he is optimistic the wavier will be granted, given the dire financial situation many municipalities have been finding themselves in during the recession.
”It’s difficult to live within that cap,” Mr. Lang said.
”You’re seeing this kind of thing more and more as the state keeps cutting aid,” he added.
