By Victoria Hurley-Schubert, Staff Writer
Joint agency budgets were approved at a joint meeting of borough and township municipal officials Wednesday night.
The largest budgets fire and library received scrutiny and discussion.
The Fire Department budget is proposed at $239,736, an increase of $38,114 from last year’s budget of $201,622. Most of the increase is for fleet maintenance.
”There’s nothing we are asking for that’s pie in the sky,” said Mark Freda, director of emergency services. “Everything we are asking for is very realistic.”
In the past two years, the department has been under-budgeted, which resulted in transfers to get through the year or moving budget items around.
”You want to protect your investment,” said Robert Bruschi, borough administrator, agreeing with Mr. Freda. “There is a morale issue and it’s support for the guys dedicating that amount of time.”
Fire facilities have a budget of $120,800, which is an increase of $26,982 from the $93,818 last year. Utility costs and general wear and tear on buildings are areas that need maintenance. This was also under-funded and had to have transfers made to get through the year.
”There’s no fluff in the facilities budget,” said Mr. Freda.
An all-encompassing study, the first done in almost 20 years, of the department should be ready for officials and the public in early May.
The library received approval for an increase of $104,188 to $3,777,033 for 2011, which is the first time in three years the library is asking for an increase.
Some of the largest increases are double-digit increases in health insurance costs and pension costs. Health costs have increased $23,000, or 11 percent and pension costs have risen about $22,000, or 8 percent, which is employer match of 3 percent to the employees’ 5 percent contribution, said Leslie Burger, library director. There are also increases in heating and cooling costs.
Most employes contribute one twelfth, or 8 percent, of their health care costs, which is more than the state mandated 1.5 percent. Ms. Burger, who makes about $140,000 per year, contributes 1.5 percent of her salary toward benefits because of her salary bracket. The seven employees who have opted out of the health care plan save the library $140,000 this year, said Ms. Burger.
Several questions about using part of the library’s $10.3 million endowment were raised. Some of the returns on the investments are used in the library budget, said Ms. Burger, who said the endowment won’t be fully funded until all pledges come in, which will be in 2015.
And, since the economy has been in decline, the returns on investments made have been about 2 percent distribution, based on an average investment performance of the past three years. This worked out to $126,000 distributed to the library in unrestricted funds and $30,000 in restricted gifts.
Parts of the endowment are restricted, meaning earmarked for certain things and cannot be used as part of the general fund.
A $300,000 donation from the Friends of the Library also helped close the budget gap and reduce what the library needs from taxpayers.
Library revenues come from late fees, material rentals and non-resident fees, among other things. Library officials are exploring other revenue streams such as cell towers and leasing roof space for solar panels.
The library budget was approved with a caveat for salary increases, which will be determined when the borough and township decide on municipal employee salary increases. Library salary increases mirror the municipal salary increases, but typically the library does what the borough does, said Ms. Burger.
The municipalities also contribute $100,000 in a separate payment to offset the library’s free parking budget.
Capital budget requests from the library, fire department and the sewer operating committee were sent back to the joint finance committee for further discussion.
