West Long Branch approves $9.2M budget
Woolley says tax rate should be higher
BY DANIEL HOWLEY Staff Writer

WEST LONG BRANCH — Despite discord among members, the Borough Council has voted to adopt its $9.2 million 2009 spending plan.

The council voted 5-1 in favor of adopting the budget during the June 17 meeting. Councilman Joseph Woolley cast the sole dissenting vote against the spending plan.

"I disagree with the budget," Woolley said after voting against the plan, adding that he felt that the tax rate increase adopted by the council was too small.

The borough's 2009 spending plan calls for taxpayers to raise a tax levy of approximately $5.92 million.

Initially, the borough had proposed a budget that called for residents to raise a levy of approximately $5.95 million, $30,000 more than the adopted budget's tax levy, Borough Auditor Gail Watkins explained last week.

The changes to the levy were the result of amendments the council made to the amount of capital fund surplus used in the budget as well as changes to items of general revenue.

Overall the borough's 2009 budget represents an increase of $219,627 from last year's spending plan.

Under the adopted budget, taxpayers will see a 3.2-cent tax rate increase from last year's budget.

That increase will raise taxes from 41 cents per $100 of assessed property valuation to 44.2 cents per $100.

For the owner of an average borough residence valued at $477,100, the adopted budget results in a $152.67 annual tax increase.

Following the meeting, Woolley said he believed that instead of adopting a budget with a 3.2-cent rate increase, the council should have adopted a budget with a 3.5- cent rate increase.

The difference between the two increases, Woolley said, amounts to roughly $15 a year.

Woolley said the council most likely voted for a smaller increase in order to give borough residents "a break."

Woolley's rejection of the 2009 budget is not the first time a council member has spoken out about this year's spending plan.

During a May 20 council meeting, Councilman John Hegarty questioned the budget's proposed 3.5-cent tax rate increase, saying it would leave the municipality financially vulnerable for years to come.

According to Hegarty, the council had discussed several different rates, with proposed increases ranging from 2.9 cents to 3.9 cents.

The difference between a 2.9-cent increase and a 3.9-cent increase equates to roughly $3.98 a month or $47.76 a year.

During the May 20 meeting, Hegarty argued that a 3.5-cent increase was an inadeq uate increase and would eventually lead to an even higher tax increase in 2010.

Hegarty cited the borough's need to pay for its new police headquarters and the Franklin Lake dredging project as reasons for his favoring a higher increase.

Additionally, Hegarty, who pushed for a 3.9-cent increase, said that without such an increase, the borough would not reach its state-allotted 4 percent tax increase cap.

By not reaching the 4 percent cap standard, Hegarty said, the borough would be limiting the amount by which it would be able to increase taxes next year.

Hegarty rationalized his argument by stating that a 3.9-cent increase would prevent the borough from saddling taxpayers with a significantly higher increase in 2010, by easing them into it in 2009.

However, Mayor Janet Tucci and Councilman J. Thomas DeBruin countered Hegarty's argument by saying that the proposed 3.5-cent increase would be enough for the borough.

Major expenses covered under the borough's 2009 budget include contractual obligations related to collective bargaining agreements, payments to the municipal library of $477,056, insurance and debt services.

In addition to these expenses, taxpayers are receiving less tax relief from the state, which has reduced aid to the borough by $25,663.

Yet despite the reduction in aid, Tucci said, the borough managed to generate revenue through increases in court fees, as well as interest earned, fees and permits.

Capital improvements included in the 2009 budget range from the installation of curbs and sidewalks on Hilltop Drive to the purchase of equipment for the borough's volunteer fire department and first aid squad, including protective clothing, pagers, radios, air packs and exhaust systems for the fire trucks.

The borough Police Department had also requested the purchase of dispatch consoles, a telecommunications system, a security camera system, and furniture for the new police building.

Additionally, the department had sought the purchase of four new police vehicles.

While the borough was expected to move forward with these purchases, it has also made provisions to decrease the amount of taxpayer money it must spend by deferring the municipality's police pension contributions.

According to DeBruin, the borough is deferring approximately 50 percent of the total pension contribution the municipality must make to the police department.

In total, the borough deferred $172,864 in pension contributions. That amount, De- Bruin explained, will not have to be repaid until 2012.

Under state law, the borough must contribute a certain amount to pensions for its police and public employees.

Should the economy rebound enough in the coming year, DeBruin explained, the borough could see fit to put money in a separate account in order to pay off the deferred pension amount in full in 2012.

According to Watkins, West Long Branch may be responsible for paying 8 percent interest on the deferred amount. However, Watkins added, the borough has received no definitive information about interest payments from the state yet.

Contact Daniel Howley at dhowley@gmnews.com.