By MICHAEL NUNES
Staff Writer
RED BANK–Despite having the 2016 budget introduction on the agenda, residents and business owners voiced more concern over proposed increases to parking rates than the proposed tax increases under the proposed budget.
“We examined all sources of income, and we looked at them to make sure we are leveraging, in a reasonable way, income sources that can keep the taxes as low as possible while not creating an onerous burden elsewhere,” said Councilwoman Linda Schwabenbauer, who chairs the borough’s finance committee, at the April 27 Borough Council meeting.
The parking fee proposal, according to Schwabenbauer, would result in parking lot fees in the borough to increase by 50 cents to $1 an hour.
Under the proposal, the minimum time that can be purchased at the lots will be two hours, rather than the current one-hour minimum.
Street parking would also see a bump from $1 an hour to $1.50 an hour.
Parking permits in the borough would also increase, according to the proposed ordinance. Currently, a 30-day parking permit costs $135, a three-month permit costs $200 and a six-month permit costs $400. If the ordinance passes, costs would increase to $180, $275 and $500, respectively.
The introduction of the budget passed unanimously, however, there was a 3-2 split on the dais to introduce the changes to the parking fees with Councilman Ed Zipprich and Councilwoman Cindy Burnham voting against its introduction.
Business owners who attended that meeting voiced their concern over the rate hikes, claiming that the move could hurt the borough’s down-town area.
“I am terribly concerned that what [the council] is doing in their proposed budget with parking rates, it is a disaster for Red Bank, not just for the business community, but for the residents as well,” said Jay Herman, a principal of Downtown Investors, LLC. as well as an executive member of the Red Bank RiverCenter Board of Trustees.
“Raising rates on parking is another insult to the customers who we try to bring to town,” he said.
RiverCenter Executive Director James Scavone also addressed the council, stating increasing parking rates in the hopes of pumping more revenue into the budget is not a long-term solution to filling in the gap in the budget.
“To use parking income to cover the budget deficit to the benefit of the residents may be short sighted when that money could be used to further the parking solutions that the business community is seeking from the borough,” he said.
According to Schwabenbauer, the last time rates went up in parking lots was about 15 years ago, and the last time street parking rates increased was five years ago.
“You have to understand, this is just a proposal and we really do appreciate the input from the public,” she said.
According to Schwabenbauer, the current draft of the 2016 budget totals $22.39 million, which would be backed in part by a $12.60 tax levy on residential and commercial property owner.
The budget is up from last years budget, which totaled $21.66 million and supported by a $11.91 million tax levy.
The proposed tax rate in the introduced budget is 60 cents per $100 home assessment, up one cent from the previous year. For a home assessed at the borough average of $354,497, the resident would face a tax bill of $2,135.13.
According to Schwabenbauer the borough is looking at ways to reduce the tax impact to residents and is currently looking into a shared service agreement with Tinton Falls for borough vehicle repairs.
A public hearing on the budget is scheduled for May 25, with the ordinance to increase parking fees scheduled for May 11.
“The business community came in here and plead their case tonight and we have to take that into consideration. In defense to the way that I voted, I listened to the businesses community and the restaurateurs who were here and factored that into my decision making,” Zipprich said.
Contact Michael Nunes at [email protected]