The East Brunswick Township Council on Monday shaved nearly a third of the proposed municipal tax increase.
Using a mix of increased revenues and budget cuts, the council reduced the proposed tax rate hike from 14 cents to 9 cents per $100 of assessed valuation. The decision came after four budget workshops, and also one week after the council voted to cut the defeated school budget by the same amount.
Between the municipal and school budget cuts, the council has spared taxpayers 10 cents on each $100 in valuation in property tax rate increases, amounting to savings of about $150 for the owner of property assessed at $150,000. Municipal taxes are still expected to go up by about $135, and school taxes by about $28, not including debt service.
Among the new municipal budget cuts proposed Monday night was a $50,000 reduction in recycling bags the township gives to residents, and about $80,000 on police overtime pay. In addition, the council realized savings through reductions to the School Age Child Care (SACC) program, which will be turned over to the school district.
Councilman David Stahl said the township had about $104,000 budgeted for the recycling bags, but after reviewing the numbers that were used last year, the council decided it did not need to distribute 400,000 bags this year, and will save about $50,000.
He said the police overtime cut came about after reviewing historical data.Also, money was budgeted for recreation activities related to SACC, but with the school year almost over, the council did not think further purchases would be needed for the after-school program.
“They probably made the needed purchases already,” Stahl said. “The program is ending [for the township], so we don’t need to worry about it for the fall.”
Mayor William Neary’s proposed budget called for an 11-cent tax increase per $100 of assessed valuation, but that went up to 14 cents after the township learned of a pending decrease in state aid. The increase now stands at 9 cents.
Council President Catherine Diem noted that much of the savings came from the council adding more revenue in the budget and using it for tax relief, instead of keeping it in the hotel tax fund or the surplus account, known as the fund balance.
Diem said a large cut was made in the legal services department, totaling about $30,000 to $40,000 this year.
“[Township Attorney] Mike [Baker] cut a bunch for things in his budget,” Diem said. “That set the tone early on that we needed to buckle down.”
Councilwoman Nancy Pinkin said she wanted to also address the issue of employees taking township cars home, but Diem said that is something the council needs to look at later on as a matter of policy. Diem also worried that, because of precedent, such amovemay create legal issues. Baker and Business Administrator James White have been asked to research the issue.
A public hearing on the budget amendment is scheduled for June 2.