Metuchen officials have introduced a municipal budget for 2014 that would raise the tax rate 2.9 cents.
“I think the increase is modest, and it’s … driven primarily by the labor costs of maintaining services,” Borough Council President Jay Muldoon said.
The $16.01 million tab, which was introduced at the April 21 council meeting, includes a tax levy of $11.24 million — an increase of $305,890 over last year’s levy.
“[It’s] just the price of doing business,” Business Administrator Bill Boerth said of the increase. “On a $16 million budget, we’re only showing, in appropriations, a 1.65 percent increase. That, in my mind, is a pretty reasonable number.”
Municipal taxes would increase nearly $51 on a home assessed at the borough average of $189,931.
Boerth said the spending increase was not driven by one particular item, but represents small jumps across the board.
“Everything is pretty flat,” he said. “Of course, there are increases in some areas.”
The borough’s state aid allotment remains the same as last year.
The borough’s library — faced with layoffs and possible evening closures because of a slated budget decrease of close to $19,000 — benefited from having its budget maintained at its 2013 level of $717,923.10. This included a supplement from the borough’s coffers, according to Boerth.
“It’s not a lot of money, and it may not do the job forever to keep the budget flat, but I recognize that by stepping above the legal minimum, you’re giving a vote of confidence to the library, which is a valuable resource [that] many of our residents use heavily,” Sondra Flite, president of the Friends of the Metuchen Library, said after thanking the council at the meeting.
Police salaries are up $107,000 from last year as a result of the finalization of the department’s labor contract, Muldoon said. The department’s staff has remained stable with no new hires, he said. Health care costs are also on the rise, Muldoon said.
The borough’s capital budget for 2014 totals $566,400. The repurposing of bonds will fund new digital radios and a fingerprint machine for the police force, costing $72,600 and $32,800, respectively.
The Fire Department is slated to get new personal protective equipment at a cost of $22,000.
In addition, the Public Works Department is set to receive a pickup truck and plow, costing $29,000.
Improvements to make the library compliant with the Americans with Disabilities Act are expected to cost $50,000 and will be covered by a grant.
The largest line items in the capital budget are $250,000 for street repair and repaving, and $110,000 for lighted crosswalks.
“I was happy to see that it did reflect money for some of the pedestrian-safety ini- tiatives,” Muldoon said. The two lighted crosswalks that are no longer functioning will be repaired, and two new ones will be added as part of officials’ overall plan to improve safety for those on foot.
Although roadwork represents the capital project with the highest price tag for 2014, the plans do not address all the necessary repairs, Muldoon said.
“I wish there was more money available for roadwork,” he said, adding that it must be undertaken in increments to keep tax increases to a minimum. “Infrastructure is something the country needs to invest in, and we’re just trying to do our piece of it.”
Both the pedestrian initiatives and the roadwork will be largely funded through bonding and may receive partial grant funding. Any grant monies that trickle in will offset the funds earmarked in the budget for the projects, Muldoon said.
According to Boerth, the borough is seeing a slight increase in principal and interest payments on its bonds. However, others were refinanced to create savings.
“We always make adjustments to reduce our costs wherever we can,” Boerth said.
A public hearing on the budget is set for the council’s May 19 meeting.