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September 5, 2008

Borough adopted $8.7 million budget, raised taxes

MELISSA L. GAFFNEY, Staff Writer,The Courier, September 4
Posted:09/05/08
The Keyport Borough Council adopted its amended municipal operating budget shorthanded during a special meeting on Wednesday, Aug. 27, nearly eight months into the fiscal year.

The resolution amending the now-$8.7 million budget survived its public hearing on the 27th after being formally adopted during the governing body’s session on Tuesday, Aug. 19.

In its amended form, the budget was increased from nearly $8.4 million to more than $8.7 million.

The budget vote during the council’s special session on Wednesday did not include councilmen John Kovacs or George Walling, both of whom were not present during the vote, according to Borough Clerk Valerie Heilweil.

Because of the amendment, residents will now experience a tax rate of about $1.59 per every $100 of assessed property value as opposed to the introduced rate of $1.54, according to budget documents.

The introduced rate represented an increase of about 12 cents, while the amended tax rate produced an increase of approximately 17 cents from the 2007 budget, according to documents.

The budget amendment included an increase in the tax levy from over $5 million to nearly $5.2 million.

Residences valued at $123,000 will see a tax increase of about $209 on a municipal tax bill, which is nearly $60 more than the introduced hike of approximately $148, according to budget documents.

The increase did not take into consideration any adjustments in state, federal or school tax rates.

According to the resolution that amended the borough’s budget, the local municipal budget for 2008 was approved for introduction on March 18.

The resolution included several increases in anticipated revenues, such as the budget surplus and state aid, according to documents.

Borough Administrator Peter Valesi said there were major additions to this year’s budget, as well.

He cited $15,000 for a new police vehicle, an additional $105,000 to the Police Department appropriation for overtime pay, and more than $70,000 to fund the library.

Valesi said funding of the free public library is a New Jersey state mandate, but that the borough is still discussing its funding with the N.J. Department of Community Affairs, in Trenton.

Other budget increases reflected fuel for motor vehicles, street lighting and electricity costs, as well as more than $45,000 for employee group insurance, according to the resolution.

The chief financial officer, Thomas Fallon, said the budget amendment has already been approved by the state.

Notably, the Fire Department stressed the need for a new fire truck during the Aug. 19 public session. Valesi said the borough has not purchased a brand new piece of equipment in years.

Mayor Robert Bergen said that although the borough received additional appropriations from the state, most of that money would be helping fund the school system.

Councilman Joseph Sheridan said the administration and budget committee worked very hard this year, especially with the cuts in state aid. “We really sharpened our pencils on this budget,” he said. “It’s not the nicest tax wise, but they worked hard.”

Walling said it was not pencils in the plural, but one pencil the administration passed around quite often in order to trim the budget. “We were facing a 19-cent tax increase,” he said. “They got it down to 16 cents.”

Bergen said the borough faced a tough situation this year, but that it would only get worse next year. “We really have to put a plan together [for the next budget cycle],” he said.

As for residents’ concerns about the tax increase and the livability of Keyport, as it currently stands, Bergen said the borough was in the same boat. “We hear you loud and clear,” he concluded. “We’re working on it.”

The next Borough Council meeting will be held on Tuesday, Sept. 16, at 7 p.m. in Borough Hall, located at 70 West Front St. in Downtown Keyport.

Posted by tumulty at September 5, 2008 3:38 PM

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