The Millstone Fire District took into consideration the demands for additional service and prudent spending to propose a $1.72 million budget that depends on an average tax increase of $22.
Millstone residents can vote on the proposed 2011 budget from 2 p.m. to 9 p.m. on Feb. 19 at the firehouse, located at 461 Stagecoach Road. The fire commissioner election will also take place at that time. Absentee ballots can be requested for those who are unable to vote in person.
“The commissioners were faced with numerous challenges in developing this budget,” said Dave Markunas, Board of Fire Commissioners chairman. “We had a record number of calls for service in 2010 at 701. We had to contend with the new 2 percent cap.”
The proposed budget relies on raising $1.5 million through taxation, which would increase the tax rate for fire services to .085 cents per $100 of assessed value. Taxes for a house assessed at the township’s average of $510,990 would increase $22.48 if the proposed budget is approved, Markunas said .“This breaks down to an increase of approximately 6 cents per day for the average homeowner,” he said. “While we recognize that this is not the best of economic times to put forward a tax increase, the 2011 budget represents a careful balance that allows the department to continue to provide a strong level of service to the community while improving the financial circumstances of the district.”
The total budgeted appropriations are actually $39,915 less than last year. However, the district needs to increase taxes to compensate for decreased revenue in other areas. Revenue has decreased due to the district’s reduction of using undesignated funds, according to Markunas.
“In the 2011 budget, we do not have any restricted fund balance to use to offset costs,” Markunas said. “Previous budget defeats and cuts directed by the township exhausted our surplus and put the fire district in an unsustainable financial position.” Over the last few years, the commissioners have made numerous cuts to different line items in order to meet rising costs, according to Markunas.
“Many of our budget line items have been underfunded for several years,” Markunas said. “During the 2010 budget year, the commissioners took extreme measures to further reduce costs with the aim of generating a surplus in 2011 and restoring some measure of financial stability within the district.”
One of the biggest changes has been the district’s employment of substitute and perdiem firefighters to replace two full-time firefighters who left the employment of the fire district, Markunas said.
“Through this strategy, the board was able to maintain the most effective staffing levels for emergency response of five firefighters per shift while offsetting salaries and related personnel costs,” Markunas said. “We were able to generate additional surplus from other smaller operating efficiencies and other sacrifices to create a surplus of approximately $265,000.”
The district also had $4,000 in its unrestricted fund balance as of Jan. 1, 2010, which means its surplus currently totals $269,000. The district plans to use $127,000 from the surplus in the 2011 budget and to use the remaining $142,000 in future budget years, according to Markunas.
The proposed budget shows that the district’s operating and maintenance costs are similar to those in 2010. However, the New Jersey Division of Pensions and Benefits continues to institute the payment of the previously deferred amount of contribution, which drives up the cost of retirement benefits, according to Markunas.
The district’s debt service will also increase $5,000, to $55,000, in 2011. The department purchased a new engine last year for $285,000. The debt remaining after 2011 will be paid in three annual installments of $60,000. Total debt service appropriations would rise from $76,085 in 2010 to $78,620 in 2011.
The proposed budget shows that capital appropriations would decrease because 2011 projects will cost less than those in 2010. The budget provides for capital appropriations in the amount of $130,000, of which $30,000 would go toward the purchase of new self-contained breathing apparatus tanks, and $100,000 would go toward the purchase of new utility vehicles.
“The tax levy would increase .4 cents due to the aforementioned reasons, and because the district has continued to reduce budgets in previous years through the implementation of prior year’s surplus,” the proposed budget states.
Administration salaries and wages would total $24,800, which is also what they cost in 2010. The five commissioners receive an annual compensation of $4,000 and the recording secretary receives $4,800 annually. Fringe benefits for administrators would cost the same as last year at $1,500. Other administration expenses would increase from $68,250 to $69,000, but overall, the total administration costs would decrease from $95,300 to $94,550.
Staff salaries and wages would decrease $40,000 to $620,000. The district’s two career lieutenants/supervisors would receive $74,500. The six career firefighters would earn annual salaries of $66,000. Overtime is expected to cost $25,000. The per-diem firefighter would receive $61,000 in 2011. Fringe benefits for staff would increase from $340,500 to $348,700. Other costs of operation and maintenance would increase from $327,400 in 2010 to $392,500, with the overall cost of operations and maintenance expected to increase from $1,327,900 to $1,361,200. The district plans to spend $500 more on firefighting equipment in 2011 for a total of $5,100. Contingent expenses are expected to increase from $30,000 to $50,000. Office expenditures will increase from $6,000 to $16,000. Training and education will cost $1,300 more this year for a total of $10,000. Emergency medical supply costs will rise $1,000 to $3,000. Station supplies will cost $4,000 more for a total of $9,000. The district plans to spend $9,800 more on protective equipment and uniforms than it did last year for a total of $46,800. The district also anticipates fuel costs to rise approximately $7,0000 to $27,0000.
“The Board of Fire Commissioners wants the residents of Millstone to be an informed electorate so we have put the budget documents on our website,” Markunas said. “We are very proud of our accomplishments, and I am confident that the residents will recognize the value of the service the department provides every day.”
Three candidates are running for the three open seats on the fire commissioner board. Jeffrey Van Arsdale was appointed last year to complete an unexpired term and is now running for a full three-year term. Thomas F. Banyacski Sr. is running for the other three-year term seat. Ronald P. Gesualdo is running to fill the final year of an unexpired term. Commissioner Paul Boegemann is not seeking re-election.
Copies of the budget can be downloaded at www.mtbfc.com.
Those with questions about the budget can email them to David Markunas at [email protected].
More information about fire calls can be found at www.millstonefire.com.