FB Budget approved

[novillero]

Freehold municipal budget to hike tax rate 3.7 cents
By Kim Predham • FREEHOLD BUREAU • June 16, 2009

FREEHOLD — The Borough Council adopted a $14.1 million municipal budget Monday, after addressing concerns over rising taxes and the choice made to spare municipal employees from measures like wage freezes.

The 2009 budget approved Monday calls for a tax levy — the amount raised through taxation — of $8,118,383, up about $368,028 from 2008.

This translates to a tax rate increase of 3.7 cents, from 71.8 cents per $100 of assessed property value to 75.5 cents. The average homeowner with a property assessed at $259,676 will pay about $1,960 in municipal taxes, up $96.

Those property taxes will help fund a $14,055,136 budget. The budget is approximately $65,000 less than the 2008 budget.

Taxes are rising while the budget declined because there were drops in ratables, court revenue, construction fees and interest on investments, officials have said. State aid is also down about $40,000 this year.

To save money, officials are reducing the borough's payment to the police and fire and public employee retirement systems to about $508,000. Roughly $452,000 of the payment will be deferred.

Construction permit and landlord registration fees were also raised, and officials saved about $200,000 by switching insurance carriers, Mayor Michael Wilson has said. No layoffs were proposed, but officials have opted not to replace six employees. Two of those positions for police officers could be filled if the borough receives federal funding, Borough Administrator Joseph Bellina has said.

Republican borough council candidate Ted Miller lobbed several questions at the governing body before the budget vote Monday, asking what benefit he would derive from his extra tax dollars and why measures like wage freezes were not implemented.

This year's budget allows the borough to maintain its level of services and avoid layoffs, Wilson said.

www.app.com/apps/pbcs.dll/article?AID=2009906160341

[novillero]

Okay, credit where it is due here. I'm pleased to see that the budget did not rise this year (although for various reasons taxes went up). State aid only decreased by $40,000 - I feared that the number might be much higher. I think Mr. Bellina probably gets credit for that. In my opinion, the man is worth his pay.

That being said, I would like to learn more about the deferments. What are the specifics on that? What analysis could be we get on how this will affect us in the future? A deferment just means we pay later - how much will that hurt then?

I would like to see other cuts and costs reductions. I think Ted's question as to wage freezes is legitimate. Many many people have not seen their wages increase in several years. I am sure Mr. Bellina had already run the numbers and presented that to the council at some time when the budget was being prepared. Was there an answer to that?

[novillero]

Some questions are answered here. I get a queasy feeling about such a large budget deferment.

Candidate questions tax hike
Freehold Borough Council adopts $14M budget
BY CLARE MARIE CELANO Staff Writer

The Freehold Borough Council has adopted a $14 million operating budget for 2009. Following a review of the budget by state officials, the council adopted the spending plan at a meeting held in Borough Hall on June 15.

The 2009 Freehold Borough municipal budget totals $14,055,135 and will be supported by an $8.1 million local tax levy. The borough will receive $1.57 million in state aid in 2009.

The 2008 municipal budget totaled $14,119,811 and was supported by a $7.7 million local tax levy.

During the public hearing on the budget, Ted Miller, who is a Republican candidate for Borough Council, expressed his disappointment at the increase in municipal taxes that property owners in the borough will be required to pay this year.

Miller asked Mayor Michael Wilson if officials considered asking public employees to take a wage freeze in 2009 in light of the current economic conditions. He said other towns have taken that action.



Wilson said officials did not ask public employees to take a wage freeze.

Miller also wanted to know why — if the total budget is $65,000 lower this year compared to last year — property owners will pay more taxes ($8.1 million local tax levy in 2009 compared to a $7.7 million local tax levy in 2008). He asked what the increase in the tax levy would mean to the average homeowner, and to him.

Wilson said there is a 3-cent increase in the municipal tax rate. He explained that equates to about a $98 increase for a person who has a home that is assessed at the borough's average of $259,000.

In a later conversation with Miller, the council candidate said he "thought the borough could do better with the budget," especially in light of the difficult economy.

"If there was any year to have a flat budget with no increase in taxes," this would be the year to do it," Miller said. "I believe the council should also be more forthcoming with the budget hearings and include hearings in a regular council meeting at a regular time, as opposed to having the hearings at a special meeting."

One of the biggest savings in the 2009 budget year, according to Borough Administrator Joseph Bellina, is the ability to defer half of the town's pension payment that is due to the state for public employee pensions.

The council's decision will save $400,000 now and "prevent a back-breaking tax increase on property owners," Bellina said.

The pension payment that is being deferred this year will have to be paid back with interest beginning in 2012. The borough will also have to make its current pension payment in the years that the deferred money from 2009 is being repaid.

With the 2009 budget in place, the municipal tax rate will be 75.6 cents per $100 of assessed valuation. That means the owner of a home that is assessed at the Freehold Borough average of $259,000 will pay about $1,958 in municipal taxes in 2009.

The owner of a home that is assessed at $400,000 will pay about $3,024 in municipal taxes in 2009. The owner of a home that is assessed at $500,000 will pay about $3,780 in municipal taxes in 2009.

Municipal taxes are one part of a property owner's overall tax bill, which also includes Freehold Borough K-8 school taxes, Freehold Regional High School District taxes and Monmouth County taxes.

Participation in a new insurance plan will yield a $200,000 savings this year, according to Bellina.

The administrator noted there are four fewer public employees in 2009 than there were in 2008.

In addition, two police officers have retired, but those retired officers may be replaced with new hires that would be paid for by a federal grant.

The borough has generated $400,000 less in surplus this year than in the previous year, according to information provided by officials.

newstranscript.gmnews.com/news/2009/0624/front_page/003.html

[admin]

Jun 24, 2009 16:35:12 GMT -5 lisas84 said:

"In a later conversation with Miller, the council candidate said he "thought the borough could do better with the budget," especially in light of the difficult economy.

But how exactly could "doing better" be accomplished? What are the ideas?

(Maybe I can apply those fiscally sound ideas to myself -- starting with not going to book sales!)

Good fair question. We do need to see solutions, don't we? I also think it was a mistake to expect municipal employees to take a wage freeze. That is a knee jerk reaction that will lose votes. This opens a can of worms asking contracts to be broken. There had better be very good reason for that to even be considered.

If anything, it is to the credit of this town that we are not seeing lay offs or the threat of wage freezes. Many other towns are.

As mentioned in another thread, we are about middle in taxes when compared to other western Monmouth County towns. On top of that, we have the best municipal services. Dollar for dollar, we are ahead of other compatible areas.

I think Miller is on track by challenging these things. I also think he has an up hill battle when dealing with the tax issue. Every budget can do better. He does need to offer more solutions. I do think Miller is right about the meetings and getting them more accessible for people. An ill advertised odd ball meeting at an inconvenient time, right before a Holiday is not good planning.

And I still agree with Novillero about the deferments. that is a gamble and makes me leery. .

[novillero]

Brian, I think it was Red Bank that cut back the work week to save money... and then just recently cut back the number of employees. This is happening all over. We saw it with the Sheriff's department (wasn't it?). the question was to (1) cut back on wages; or (2) risk layoffs. They gambled... and several guys lost.

As I noted before, many many people in the private have not seen wage increases in years! Public employees however have their guaranteed increases.

It's not an easy job to fire someone. And I am glad I don't have to make that decision. But taking other routes may be the easy way out, but they may only cause pain later. And when the bill comes due... there will be real pain felt by the taxpayers.

[admin]

Jun 24, 2009 17:05:41 GMT -5 novillero said:

Brian, I think it was Red Bank that cut back the work week to save money... and then just recently cut back the number of employees. This is happening all over. We saw it with the Sheriff's department (wasn't it?). the question was to (1) cut back on wages; or (2) risk layoffs. They gambled... and several guys lost.

As I noted before, many many people in the private have not seen wage increases in years! Public employees however have their guaranteed increases.

It's not an easy job to fire someone. And I am glad I don't have to make that decision. But taking other routes may be the easy way out, but they may only cause pain later. And when the bill comes due... there will be real pain felt by the taxpayers.

The township is also losing employees. many places are. The county unions were right, considering the circumstances they faced. There was never a guarantee that if they accept the wage freeze, they will keep their jobs. That point may be driven home because rumor has it, that even with the lay offs that occurred, there may be more to come.

I wrote what I did from a perspective that nobody should be playing with peoples lives unless there is a very good reason to do so. We are talking about people, not just numbers.

In the long term, all governing entities need to re-evaluate so that we do not continue in this mess. I write that for the tax payers.

[admin]

Jun 24, 2009 17:12:48 GMT -5 admin said:

Jun 24, 2009 17:05:41 GMT -5 novillero said:

Brian, I think it was Red Bank that cut back the work week to save money... and then just recently cut back the number of employees. This is happening all over. We saw it with the Sheriff's department (wasn't it?). the question was to (1) cut back on wages; or (2) risk layoffs. They gambled... and several guys lost.

As I noted before, many many people in the private have not seen wage increases in years! Public employees however have their guaranteed increases.

It's not an easy job to fire someone. And I am glad I don't have to make that decision. But taking other routes may be the easy way out, but they may only cause pain later. And when the bill comes due... there will be real pain felt by the taxpayers.

The township is also losing employees. many places are. The county unions were right, considering the circumstances they faced. There was never a guarantee that if they accept the wage freeze, they will keep their jobs. That point may be driven home because rumor has it, that even with the lay offs that occurred, there may be more to come.

I wrote what I did from a perspective that nobody should be playing with peoples lives unless there is a very good reason to do so. We are talking about people, not just numbers.

In the long term, all governing entities need to re-evaluate so that we do not continue in this mess. I write that for the tax payers.

Novillero,

I also need to clarify where I am going with everything that I have written. It is easy to jump on the anti tax band wagon. I am on it. In New Jersey we are way over taxed and the regime in Washington will be giving us more.

All I want from any candidate is solutions. I wrote that it is an up hill battle for Miller. I put that in perspective of the other municipalites and the county that we discussed. I think FB is in a better position that many others. Can we do better? I hope so! But we need solutions.

Applying that at the county level, the county needs to come to a long term plan where they can continue offering services people want, without taking on a payroll that is too large. Now is the time to assess that. Do it now before people lose jobs or public services are cut that people want. Do it through attrition, consolodation and any cost reductions that can be found. Look at not just emloyee salaries, but the over all costs of emlployees. Where can we do better? Plan ahead so that the next time we see this nonsense, it is easier an easier burden.