Boro tax rate could increase by 5.8 cents Council considers land sale to offset burden on taxpayers BY LAYLI WHYTE Staff Writer EATONTOWN - A $20 million 2007 municipal budget would mean a tax increase of 5.8 cents per $100 of assessed property value for borough property owners. The 2007 municipal budget was introduced at last week's council meeting, and borough auditor Bob Oliwa was there to explain the tax rate increase. Oliwa said the overall budget is only up 1 percent over last year, but the amount to be raised by taxes is up substantially more due to the significant number of successful tax appeals that took place after last year's reassessment, decreasing the borough's ratable base. According to Oliwa, $11.7 million is due to be raised by taxes this year. "In 2007, the average property is assessed at $450,000," he said, "and that means $2,124 in taxes annually, which is up $261 from 2006." Oliwa said that if the tax appeals had not been successful, then the increase would have been 3.2 cents per $100 of assessed property value. According to the overview of the budget that Oliwa presented at the March 14 council meeting, the borough's net taxable valuation decreased by $143,431,390 from 2006, due to the tax appeals. Mayor Gerald Tarantolo said that most of the appeals were for commercial properties, of which the borough has many, including the Monmouth Mall and Eatontown Industrial Park. The borough went through a revaluation last year, which resulted in about 200 tax appeals, according to Tarantolo, and the loss of 5 percent of last year's tax base. "That 5 percent loss translates into taxes being paid by commercial properties down 2.5 percent," he said, "and taxes paid on residential properties up by 2.5 percent." Tarantolo said that he believes the reason that so many of the tax appeals for commercial properties were successful is simply because of the resources available to businesses that are not available to average homeowners. "The first line of attack for commercial property owners after a revaluation is to file an appeal," said Tarantolo, "and they have attorneys and accountants to do that for them. The ordinary taxpayer doesn't have these resources readily available. The average resident would have to take the initiative to determine what data would be needed for a successful appeal and to gather that together." It is anticipated that the state aid revenue for 2007 will increase by almost 2 percent, or $38,167, to $2 million. Fixed costs for the borough increased this year, with the most significant increase in the pension fund, which increased by 53.89 percent. Tarantolo said he would be in favor of selling a 2-acre parcel of land owned by the borough on Field Stone Court as a way of offsetting the increased tax rate. "The property is at the end at a cul-de-sac," he said in an interview last week, "and there are two buildable lots there." Tarantolo said that since the land is currently owned by the borough, it is not generating any tax revenue. "We have an obligation to the residents of Eatontown to do what we can to offset these taxes," he said. Tarantolo said that he believes the 2-acre property would most likely only accommodate two single-family homes, which would not have a great impact on the borough. "I'm of the opinion that it would not have an impact on the school system," he said. "It would not generate hundreds of kids, but it would generate new tax revenue." Oliwa told Tarantolo that in order for the sale of the property to have an impact on this year's budget, a sale contract would have to be signed before the council passes its final budget. Oliwa also said that the land would have to be sold for at least $600,000 to offset this year's tax rate increase. Tarantolo said that the council discussed selling this property three years ago, but it never came to fruition because there was not a majority consensus in favor of it. Some members of council are still against the sale, including Councilwoman Joyce Engelhart, who said she doesn't believe it would make a "real difference" to the people of the borough, and Councilman Carl Sohl. "I oppose it for the same reason I oppose what the governor is looking at doing by selling off the parkway and the turnpike," Sohl said. "We'd be using it to cover the daily stuff we should be covering with the tax base." The Borough Council, by a 4-2 margin, will proceed with the plan to sell the Fieldstone Court property, and must now determine if a new assessment of the property must be done or if the assessment from last year's revaluation would suffice to put the property out for bid.