By Vic Monaco, Managing Editor
HIGHTSTOWN The Borough Council held a public hearing on the 2008 municipal budget this week but won’t adopt the $5.9 million plan until July or August, after the state announces its extraordinary aid allotments.
But the council did authorize the issuance of estimated third-quarter tax bills, which will be due Aug. 1.
As introduced in May and presented at Monday’s meeting, the budget carries a local tax rate hike of 28 cents per $100 of assessed property value. But that rate is expected to drop at least 2 cents after recent word that the state had restored about $49,000 in slashed state aid. The $49,000 was not reflected in the budget presented at the hearing but will be at adoption time.
A 26-cent hike would raise the municipal tax rate to $1.70 per $100 of assessed property value. That translates into an increase of $312 for a homeowner assessed at the borough average of $120,000.
The borough received $150,000 in extraordinary aid for 2007 and has asked for $550,000 this year. Given the state budget crisis, the borough may receive no extraordinary aid.
Borough Administrator Candace Gallagher continued to point out Monday that the majority of the pending tax rate hike, 23 cents, is attributable to state aid cuts and state-mandated pension costs.
In addition to the expected decrease in or elimination of extraordinary aid, the borough faces potential cuts of about $236,000 in other state aid.
Gene Sarafin, of South Main Street, criticized borough leaders for continually bemoaning the state aid cuts. He and Mike Theokas, a Republican candidate for council, said consolidation with East Windsor is needed for the borough’s financial survival.
”Maybe one day we’ll wake up,” said Mr. Sarafin.
”We’re fighting a gunfight and we have bows and arrows,” said Mr. Theokas.
The resolution for the estimated tax bills was approved unanimously after Chief Financial Officer George Lang explained that waiting until after the state aid figures are announced could cause cash flow problems for the borough. He also said sending out the bills sooner would be more fair to taxpayers, rather than have them receive third- and fourth-quarter bills about a month apart.
The total estimated tax rate in the third quarter bills is expected to stand at $6.60 per $100 of assessed property value, up from $6.06. In addition to the municipal levy, that is largely comprised of the regional school tax rate of $3.65 and the county tax rate of $1.05.
The borough must get permission from the state to exceed $6.41 due to state restrictions on annual percentage increases.
