The Tinton Falls Borough Council expects to adopt a $26.47 million municipal budget during its meeting on May 7.
A public hearing regarding the budget took place during the council’s April 16 meeting, but members of the governing body did not vote on the spending plan after Councilwoman Nancyanne Fama said she had not received specific information about certain appropriations and would vote “no” on the budget’s adoption that evening.
In deference to Fama, council President Gary Baldwin, Councilman John Manginelli and Councilman Brock Siebert agreed to delay the adoption of the budget until May 7. Councilman Christopher Pak was absent.
A public hearing on the budget was held because it had been advertised for April 16. Residents spent 81 minutes commenting on and asking questions about the spending plan.
The council members were joined on the dais by Business Administrator Michael Skudera, Chief Financial Officer Thomas Fallon and Borough Engineer Thomas Neff, each of whom provided details about this year’s spending plan.
The $26.47 million budget will be supported through the collection of $15.87 million in taxes from the borough’s residential and commercial property owners. Officials will use $3.87 million from surplus funds (savings) as revenue in the budget. State aid will total $1.49 million.
Fallon said total appropriations in the budget are up 2.4% from 2018. He said the tax levy has increased by $298,000 (1.9%) from 2018 to 2019.
“We continue to aggressively amortize the borough’s debt,” Fallon said, adding that the budget is within caps that have been established for appropriations and for the tax levy. “I am confident this budget will serve residents well this year and serve us well into the future.”
During council comments, Fama said she had requested specific information regarding a $95,000 expenditure for municipal building upgrades, some of which have to do with security. She said she had not received the information from the administration.
In response, Skudera provided an outline of how the money would be spent, to which Fama said, “I’m looking for details. It is the council’s role to look at the details. I’m sure (the spending) is warranted, but I’m not comfortable with this broad discussion.”
“Asking Councilwoman Fama to make a decision tonight is unfair,” Manginelli said. “She asked for information and did not get it.”
Baldwin, Manginelli and Siebert agreed not to vote on the budget that evening so Fama could obtain the specific information she is seeking about the upgrades to the municipal building.
During the public hearing on the budget, resident Denise Catalano asked Fallon questions about the municipal tax rate and how it determines whether a property owner pays more or less in taxes from one year to the next.
Fallon explained that a property owner must check her property’s assessed value from one year to the next and use the tax rate in combination with the assessed value to determine how much she will pay in taxes.
Catalano said Tinton Falls does not have any municipal tennis courts and asked that tennis courts be provided.
Baldwin said there have been discussions about providing municipal tennis courts.
Gerry Turning, a former mayor, discussed the repayment of the borough’s debt. He said the repayment of debt should be a priority now in case the nation faces a recession or a depression in the future and municipal funds are tight.
“Don’t give me a $60 tax break. Reduce my debt,” Turning said.
Resident Nancy Britton asked questions about revenues projected in the budget from permits, fees and municipal court, and she asked about specific appropriations.
Fallon explained how revenues were generated and accounted for, and why certain line items were increasing or decreasing from 2018 to 2019.
Resident Paul Abrams asked questions about many line items in the budget, which were also answered by Fallon.
Abrams addressed the repayment of the borough’s debt, saying, “We need to lower our debt. We should try to do it year by year. The use of surplus funds is the best way to do that.”
Skudera said officials are making some capital improvements by paying cash and are not creating new debt.
Fallon added, “We are going to reduce our debt by $1 million per year over the next five years. We are in good shape and we anticipate moving forward in that way.”
The average home in Tinton Falls is assessed at $358,000. With a 2018 municipal tax rate of 48.8 cents per $100 of assessed valuation, the owner of that home paid $1,747 in municipal taxes. If that individual’s home is still assessed at $358,000 in 2019, with a projected tax rate of 47.1 cents per $100, that individual will pay $1,686 in municipal taxes.
Tinton Falls property owners pay municipal taxes, school taxes, Monmouth County taxes and a fire district tax. The amount of taxes a property owner pays is determined by the assessed value of his property and the tax rate established by each taxing entity.
Mayor Vito Perillo said “the budget is a fair budget” and thanked Skudera, Fallon, Neff and their staffs for their efforts to develop the municipal budget.