Council Approves 2011 Budget

The Township Council unanimously approved a 2011  Monday night that cuts spending by 1.2 percent but calls for a tax increase due to a loss in revenue and a hike in the amount the township pays for pensions.

Under the new budget, the owner of a home assessed at $100,000 can expect to pay $1,820 in municipal purpose taxes this year. While taxes are on the rise, however, the township decreased spending from approximately $64 million in the previous year.

Council members said much of the increase comes from a $50 million decrease in the overall township tax base, a result of a variety of factors, including tax appeals that lower the value of property and in turn, lower the amount of revenue those ratables generate. Lou Neely, head of the finance department, said the township’s tax rate is a multiple of the tax base, and that approximately half of this year’s increase is just to stay even. In addition, Neely said East Brunswick has paid out $25,419 million in tax appeals to date. 

Councilman Michael Hughes said the overall tax base is as low now as it was in 1991.

“I think it’s a very responsible budget,” said councilman Michael Hughes. “We’re not spending more this year than before, and we’re actually spending significantly less.”

This year’s budget calls for about $750,000 less in spending. Solid waste/recycling will be reduced by $200,00, from $3.8 million last year to $3.6 million this year; travel, dues and training is expected to cost $241,000, down from $290,00; and recreation will cost $494000, down from $592,000. The reduction in recreation costs can be attribute to the retirement of several employees. Overall, the number of township employees has declined by 20 employees over the last five years, including 10 this year, according to Mayor David Stahl said.

Also being reduced is debt service - $5.615 million for 2011, down from $5.8 million in 2010.

Offsetting some of those reductions is an increase in the cost the township pays for pensions. East Brunswick expects to pay $4.383 million or 7.7 percent of the budget, this year.

Of that, the township expects to pay $1.488 million in non-police and fire pensions this year, up from the $1.013 million it paid in 2010. In 2006, the township paid $256,000; in 2007 it paid $455,000; in 2008 it paid $829,000 and in 2009 it paid $985,000. That’s an increase of $1.232 million over the last five years.

For police and fire pension costs, the township expects to pay $2.796 million this year, up from $2.326 in 2010. In 2006, the township’s obligation was $844,000; in 2007 it was $1.298 million; in 2008 it was $2.093 million; and in 2009 it was $2.215 million.

Healthcare costs also are expected to increase, to $7.567 million. However, he said the township has done a good job at containing those costs and has experienced only an 8 percent increase over the last three years.

Other costs include $3.244 million for the East Brunswick Public Library, the same as last year. The township is asking for $576,000 for snow removal this year, up from last year’s $311,000. The township exceeded last year’s budget and spent approximately $600,000 on snow removal. This year, the coffers are almost empty, and just $40,000 remains.