EAST BRUNSWICK — The 2014 municipal budget would increase by $2.2 million under a plan presented to the Township Council by Mayor David Stahl.
The budget increase is predominantly driven by the rising cost of borrowing, Stahl said at an April 28 meeting of the council.
“The cost of debt is much higher because a state law limits the number of years we can sell notes at a lower-interest cost before we, as a municipal government, must bond at a higher cost,” Stahl said.
The budget, which rings in at $58,173,918, would be supported by a tax levy of $36,871,929 — an increase of $1.82 million over last year.
The tax rate would increase by 10 cents from $1.72 to $1.82 per $100 of assessed valuation on a home. The owner of a home assessed at the township average of roughly $100,000 can expect to pay $1,820 in municipal taxes this year, or about $100 more than in 2013.
The township has not undergone a revaluation on its approximately 16,000 residential properties since 1983, according to Chief Financial Officer Lou Neely.
“During this time … commercial and residential property owners have continued to file tax appeals, and in many instances they were granted. In 2013, there were 683 requests for tax appeals, and in 2014 we’re going to see 436 property owners receive a reduction,” Stahl said. “In summary, the community’s tax base has shrunk as a result of the economic downturn. This has made and continues to make the budget process difficult.”
State aid to the township remained flat at $4.17 million. The township used $2.5 million in surplus funds to balance the budget, the same amount used last year.
A provision for hiring three new municipal workers in the Parks and Recreation Department this fall is included in the budget, according to Business Administrator Jim White.
“They will work on leaf removal, winter storm cleanup … and in the spring, road repair. This also gives us a second tree crew,” he said.
Any municipal employees who retired were replaced, White said, at lower salaries than their predecessors. The township has 253 employees.
Moody’s Investment Service evaluated East Brunswick’s credit worthiness and granted the township a rating of AA1+, the mayor said.
“[That] is the second-highest rating available for communities in the United States, at a time when many communities throughout the state have seen their bond credit rating lowered,” Stahl said.
The mayor touted the township’s water and sewer services, whose rates are among the lowest in the state, he said, as well as the availability of cheap public transportation in East Brunswick.
“We continue to offer the lowest public transportation costs in the Central Jersey area,” Stahl said, referring to a township agreement with Suburban Coach USA, the bus company that has exclusive rights to East Brunswick’s commuter-parking facilities. The deal ensures that commuters who travel from East Brunswick to New York will pay no more than $85 for a 10-trip ticket through 2018.
Individual department budgets remained mostly flat, Stahl said.
“You’ll see that the economic structure that we implemented approximately six years ago [when I entered office and the budget was approximately $64 million] is working,” Stahl said.