LONG BRANCH — The City Council unanimously adopted a $50.4 million budget for 2012, an increase of $2.6 million from last year’s $47.4 million spending plan.
The budget includes a $34.3 million tax levy,whichisa5percentincreaseoverlast year’s $32.6 million levy. More than $550,000 of the increase is exclusions to the state-mandated 2 percent cap.
Of the line items outside the cap, $341,800 is for debt service, $100,000 for capital improvements and $63,700 in pension increases.
The budget calls for an increase in the municipal portion of the tax rate of 4.72 cents per $100 of assessed valuation, bringing the tax rate to 83.28 cents per $100, for a $180 tax bill increase for the owner of a property assessed at the township average of $382,961.
One city official said the aim for the future is to shift to long-term sources of income.
“We have to wean ourselves off the oneshot deals and we have to have recurring revenues,” said Finance Director Ron Mehlhorn Sr. in an interview.
“Sometime in 2009 we sold the Gregory School for $3 million. So that’s a one-shot deal that’s gone.”
Mehlhorn said the city’s plan to install parking meters at some areas of the beachfront would help the city shy away from oneshot revenue sources.
During the April 24 meeting the council approved both the 2012 spending plan as well as a $900,000 bond ordinance to purchase the parking meters, and Mehlhorn estimated that revenues from the meters could be close to $1 million from the actual meters and another $500,000 from parking fines.
“If I had that parking revenue this year, it would have bailed us out of the one-shot deal,” he said, adding that the Gregory School funds were split between the 2010 and 2011 budgets.
The parking meter proposal has been criticized during recent council meetings, with many residents along the beachfront expecting the meters to put a burden on their everyday lives.
While the council adopted the bond ordinance to fund the meters, the location of the meters has not been determined.
Mehlhorn said he expects a 97.25 percent tax collection rate, which he said is an impressive collection rate for the city.
The tax increase drew the ire of residents during the public hearing, but Councilman John Pallone attributed the increase to the recent decrease in the value of properties.
“The city also lost $40 million in assessed value in the last year, and we have to make up for that as well,” he said.
According to Mehlhorn, following approval last week of a bond ordinance to fund parking meters, the city debt has escalated to about $48 million, which resident Vincent LePore attributed to the city’s controversial redevelopment plan along the beachfront.
“There is not much more I can tell you that I haven’t been telling you the past four meetings,” he said during the public hearing. “Redevelopment started, we were $23 million in debt, and we are now $50 million in debt.
“We have four redevelopment zones that are complete blowouts,” he added. “Redevelopment is not paying for itself; taxpayers in thiscityshouldbefacinga0percenttaxincrease.”
While other residents criticized salary increases for city workers, Long Branch Mayor Adam Schneider said the contracts are beyond the city’s control.
“Can you tell me the town where they didn’t have raises?” he said. “Last year we actually had layoffs and this year we didn’t.
“I think we are at minimum staffing levels,” he added. “Unless they are going to change the state law, where they say you can void existing contracts, or in the future not give raises, then the contracts are what they are. “
In 2011 the city eliminated 39 positions, including 16 that were at the time vacant, a measure that saved nearly $3 million.
Council President Kate Billings compared the city budget to that of a household.
“When you set up a budget in your own house, does your electric go up?” she asked. “Does your gas go up?
“It’s basically the same thing: there are certain things that we could not control that are raising the prices,” she added.
The city is anticipating revenues from the hotel tax to remain flat at $330,000 while projecting an increase of nearly $75,000 in the uniform construction code (UCC) fees to about $315,000.
Mehlhorn said the UCC fees are proof that the down economy is improving.
“I think construction is picking up a little bit, and that’s got to be an indication that the economy is picking up a little bit,” he said. “Two or three years ago there was a tremendous drop.”