The Middletown Township Committee approved the amended $62 million 2011 municipal budget at a special meeting July 13.
The amended budget includes a $46.6 million tax levy, down about $46,000 from the tax levy in the budget previously introduced. “I commend the committee for making the tough decisions, and we’ve made the tough decisions this year,” Mayor Anthony Fiore said at the special meeting.
“This budget is a bare-bones budget.”
Fiore said that the budget would result in an approximate tax increase of $4.80 per month for the owner of a house assessed at the township average of $380,000.
“Would I have liked to see a flat tax this year or a tax decrease? Absolutely, but it is virtually impossible with the cost-drivers that were thrown at the municipality this year,” Fiore said.
Since the year’s onset, Fiore said that the municipality faced many financial hurdles, including the new state-imposed 2 percent cap, $4 million in tax appeals, $1 million in winter-storm cleanup costs, a $685,000 state-mandated pension contribution and rising health-insurance costs.
“I wholeheartedly support that cap — I believe it is extremely necessary — but I will once again caveat that the tools necessary to flatten or even cut these budgets are not at the disposal of the municipality,” said Fiore, adding that Trenton’s inability to pass reforms has hamstrung the municipality’s cost-cutting efforts.
Additionally, municipalities must refund 100 percent of the successful tax appeals, although they initially collect only approximately 25 percent of the tax bill, Fiore said.
“We have since gone through and done a reassessment, but we have been hit very hard with commercial and residential tax appeals,” he said. Fiore said that the township’s rising heath-insurance costs account for approximately 20 percent of the budget, though steps have been taken to mitigate that, including concessions with Middletown’s two police unions.
InApril negotiations, members of these unions agreed to pay 25 percent of their PPO premium and accepted increased co-pays, an unprecedented concession, Fiore said.
“That’s going to have a very significant impact in saving us hundreds of thousands of dollars in years to come,” he said.
The total budget is about $4 million less than last year, while the tax levy is approximately $1.2 million more.
Officials said that the tax appeals cut into the funds that would have gone toward taxpayer relief, resulting in a decreased budget and increased levy. Fiore said that the township worked to cut spending by $4 million.
“Many of you have seen the cuts in recreation; you’ve seen the cuts all around in programs and services,” he said .
The budget amendment also included two new revenue items, $201,000 from a cell tower lease and $191,000 from sale of property, and additional grant funds, said Township Chief Financial Officer Nick Trasente.
Additional funds also had to be added to police salary and wages, as the introduced budget had anticipated several layoffs, subsequently avoided through negotiations, Trasente said.
“I defend this budget; I’m proud of this budget,” Fiore said, pledging to continue to reduce spending.
“Tomorrow, we start working on the 2012 budget,” Fiore said.