BY CHRISTINE VARNO
Staff Writer
Operating without a member, the Oceanport Borough Council failed to introduce its $5.63 million budget for 2004 at its March 4 as expected.
Republicans Michael Mahon and Ellynn Kahle voted against setting a date for the public hearing on the spending plan, which calls for a 3.3 cents per $100 of assessed value property tax increase.
Kahle refused the budget because of an allotted $5,000 toward an addition at the first aid building.
"With the municipal building falling to disrepair — for example, wallpaper peeling, floors worn out, water damage, the police walls needing to be repainted or repapered, full-time employees sitting in antiquated chairs for eight hours — I don’t feel the first aid building is a priority," Kahle said. "I think the full-time employees are. That is why I am opposed to committing to the $5,000 this year for the first aid addition."
"We had many opportunities to discuss the budget," Mayor Maria Gatta said. "When the council said they were satisfied with the budget, that we cannot cut anymore, we stopped. The working of the council broke.
"To hold up a $5 million budget for $5,000, especially when it was previously agreed upon by all the council members during workshop sessions, is irresponsible," Gatta said.
Borough Auditor Robert Hulsart explained that a budget needs to be passed by two-thirds of the entire council in order to be introduced, and the vote of the mayor cannot be counted toward that majority.
Councilman Philip Apruzzi had resigned from his seat at the end of last month, leaving five members to vote on the issue.
Mahon said he thought the mayor could vote.
"I wanted to take this position on the insurance issue, not to undermine the budget," Mahon said. "But it does need work."
Gatta, a Democrat, said that at the budget workshop meetings that started in early January there was never an indication that the council would deny the proposed budget.
"None of us are happy with the budget if we have to have a tax increase," Gatta said. "We got to a point where everyone agreed we could not cut anymore."
Council members Gerald J. Briscione, Linda Johnson and Lucille Chaump, all Democrats voted for the budget.
Under the plan the municipal use tax rate in the borough would rise from 63 cents per $100 of assessed value to 66.3 cents, about 5 percent.
The council was able to keep the tax increase to 3.3 cents by increasing the amount of money it is using from its surplus account.
For 2004 the appropriated surplus is $710,000, up from $452,081, last year.
Borough Auditor Robert A. Hulsart, said the borough was able to use more money from its surplus this year than last because money that was tied up in deferred charges was now available.
"The extra money is from car tax collections, miscellaneous revenues and unexpended balances and appropriations of the previous year," Hulsart said.
If the borough had to raise the money it used from surplus through property taxes, the tax rate increase would be an additional 5.3 cents.
For each 1 cent rise in the borough’s tax rate the town collects $48,000.
Mahon said he felt some of that money could be used to off-set the insurance increase.
"The insurance increase is a total of a 19.57 percent," Mahon said. "This increase is responsible for 2 cents of the tax increase."
Gatta said she does not know where Mahon is getting his percentages.
"Based on information that I received from Deputy Borough Clerk Kim Jungfer, the total insurance increase is 13.5 percent or 1.5 cents, not 2 cents, a difference of about $24,000," Gatta said. "Insurance costs are skyrocketing in all municipalities."
Mahon said the borough could reduce its insurance costs by going through a competitive bidding process.
"We need a competitive environment, which will sharpen everybody’s pencil and get the best price," Mahon said. "Instead of burdening the taxpayers, we should lessen the increase by using the surplus."
Gatta said the borough is locked in with the current insurance carrier until 2005, Boyant, Boyant and Greenspeck.
"If you break an agreement you have to pay a penalty," Gatta said.
There will be a workshop budget meeting on Monday, where Gatta has asked Kahle and Mahon to bring their suggestions and written documentation to support their claims.
If the council members do not agree on a budget, they will adopt a temporary budget until they reach agreement. If they decide on a proposal, it will be presented at the March 18 meeting.
If the tax increase stays at 3.3 cents the owner of a home assessed at the borough’s median assessed value of $185,200 will pay an additional $61.12 to support municipal operations.