KEYPORT — The Borough Council will have to wait at least until its next scheduled meeting on May 18 to adopt the 2010 municipal budget after two proposals failed to get a second motion for a vote.
The $8.4 million budget, which as constituted would include an increase of 1.6 cents per $100 of assessed valuation in the tax rate, a rise of 2.2 percent, is being held up by an increase of prescription benefit costs in the amount of $30,000.
The tax increase would be approximately $44 for the average taxpayer with a residential assessment of $274,000, according to Thomas P. Fallon, chief financial officer for the borough.
While the council would not be able to amend the budget once adopted, it could approve it and later execute transfers of appropriations to address the prescription insurance costs, Fallon said.
“But that’s only to the extent that we have $30,000 somewhere else,” he added.
He told the council another option would involve Lorene Wright, business administrator, seeking another company whose prescription costs would be less.
Wright said she is in the midst of finding such a vendor.
“I’m working on the insurance prescription costs. That’s definitely a concern,” she said.
Mayor Robert J. Bergen was disappointed the council could not vote on the possible adoption and said most of the spending in the budget is a result of increases in benefits and health care costs.
Finding places to cut in the budget is the most ideal option amid declining surplus and cuts in state aid, he said.
“The vast amount of the money is going to pensions, health insurance costs,” Bergen said. “We probably shouldn’t raise the budget, we should find cuts within the budget, but it has to be a concerted effort.”
This year there was $714,000 cut in state aid to the borough and approximately $1.6 million in cuts since 2006, according to Fallon.
Council President Joseph Sheridan opposed waiting any longer to vote on the budget, but his attempt to adopt did not receive a second motion.
“I just think we took a very long time to pass the budget last year and I don’t think we should delay any amount of time,” Sheridan said.
Last year’s budget was approved Sept. 29.
During the public hearing portion of the meeting, Michael Lane, of First Street, encouraged the council to look toward shared services especially considering the tough economic times the borough is experiencing.
“In light of the stress that we’re under, I would encourage [you] to set a target for shared services. Because if you don’t have a target to work with, you won’t think outside of the box,” Lane said.