FREEHOLD — The Borough Council has adopted a $15.01 million municipal budget for 2013.
In conjunction with the adoption of the budget, an amendment regarding Freehold Borough’s water and sewer budget was approved by the governing body.
Borough Administrator Joseph Bellina said the amendment is “an accounting technique to properly record the appropriations and use of surplus in the water and sewer budget.”
He said the amendment did not change the total budget, the local tax levy or the municipal tax rate.
The budget, which had been introduced in March, was unanimously adopted by the council on May 20.
Council President Kevin Kane, who heads the finance committee, thanked Councilmen Ron Griffiths and George Schnurr for their efforts on the budget. Griffiths and Schnurr joined Kane on the finance committee.
Speaking about the town’s financial picture, Mayor Nolan Higgins said, “We had extraordinary expenses (in 2012) following four major weather events which impacted the borough. This year’s budget is a post- Sandy budget for many towns and a post- Sandy-plus-three budget for us.
“We have kept our staffing levels at last year’s numbers and continue to monitor all expenses. A budget is always a challenge for government, especially in these economic times. Our budget committee, borough administrator and chief financial officer have invested a great deal of time and effort in developing a budget which provides necessary borough services while keeping a tax increase to a minimum given those requirements,” the mayor said.
The 2013 municipal budget is up $245,602 from the 2012 budget of $14.77 million, according to information provided by borough officials.
The 2013 spending plan calls for a municipal tax levy of $9.37 million, up from $9 million in 2012. The tax levy is the total amount of money collected from residential and commercial property owners to support the operation of the municipality.
Officials said other revenues (i.e., state aid and surplus funds from the water and sewer utility) will be applied to help support the budget.
In 2013, Freehold Borough’s municipal tax rate will increase from 85 cents to 88.3 cents per $100 of assessed valuation. That means the owner of a home that was assessed at the borough average of $260,000 in 2012 and is still assessed at $260,000 will see his municipal tax increase by $85 from $2,210 to $2,295 over the next year.
Individuals pay more or less in municipal property taxes depending on the assessed value of their property, multiplied by the municipal tax rate.
Municipal taxes are one part of a property owner’s total tax bill, which also includes Freehold Borough K-8 School District taxes, Freehold Regional High School District taxes, Monmouth County taxes and other assessments.
Bellina said the 2013 budget does not include any layoffs of municipal employees. He said the borough has 28 fewer full-time employees than it had in 2004.
Bellina said numerous storms took a toll on the town in 2012 and led to the need for $500,000 in emergency appropriations to pay for damage caused by a violent thunderstorm in early July, a supercell storm in late July, superstorm Sandy in October, and a 13-inch snowstorm in November.
“Without the wrath of Mother Nature in 2012, this budget goes up less than 1 percent,” Bellina said, adding, “notwithstanding the fact that we still have escalating health insurance, pension and trash disposal costs.”
Bellina said the $500,000 emergency appropriation will be paid back at a cost of $100,000 per year for the next five years.
Regarding potential capital improvement projects for 2013, which could include road improvements and the purchase of public works equipment and public safety equipment, Bellina said the projects have not been finalized.