Mayor Promises Tax Cut (VIDEO)

Mayor David Stahl said Monday that when he introduces a 2012 municipal budget, it will include a tax cut.

"And tonight I am announcing that when I present my budget to the Township Council, the budget will call for a tax decrease – three years of hard work and planning is now paying dividends and a reduction in municipal taxes is happening."

The statement was part of the mayor's 2012 State of the Township Address, in which he discusses how East Brunswick has changed positively since he took office in 2008. With reduced spending, projected lower municipal taxes, historically low township borrowing interest rates, Mayor Stahl highlightes the many developments East Brunswick residents can look forward to in 2012.

Here is a transcript of his speech.

Good evening Council President, members of the Township Council, and my fellow residents.

2012 starts the fourth year of my leadership as your mayor. Tonight’s State of the Township Address provides us with an opportunity to look back in time and examine the accomplishments to date, where we are and what the future holds for East Brunswick.

When I took office as your mayor in January 2008, our nation’s economy was in a downwards spiral: unemployment was high, the housing market was in crises, and the loss of lifetime investments and the lack of future returns hurt those on fixed incomes. I understand that we needed to take decisive action in dealing with the issues presented. Thus, I pledged to responsibly reduce municipal spending, restructure the method by which the municipal government operated, and set our town on firm financial ground for our future. I am pleased to say that those goals have been reached.

And tonight I am announcing that when I present my budget to the Township Council, the budget will call for a tax decrease – three years of hard work and planning is now paying dividends and a reduction in municipal taxes is happening.

In addition the economic future of East Brunswick is bright – businesses are making million dollar investments in our town and the Route 18 commercial corridor is once again alive with new thriving business.

How was all this accomplished?

First, we have reduced spending.

In 2008 the township spent over $64 million: my proposed budget this year will call for spending less than $55 million. We continue to share services with others in an effort to spend less of your hard earned dollars.

Second, We have the Golden Triangle Redevelopment Project back on track.

It took years of tough negotiations but the redevelopment project is moving forward at a time when most of these projects remain stalled throughout the state. The litigation has ended, which could have subjected our town to millions of dollars in liabilities. Instead, the township will collect hundreds of thousands of dollars of increased revenues from the project this year and in the years to come. The redeveloper will soon be coming to the planning board with its plans. After many years of delay, the project is going to be built – a great benefit to all of us.

Third, we have reduced our work force.

In 2008 we operated with over 320 employees; today we have less than 270. I continue to work with Jim White, the township’s business administrator, to examine every position and find ways to consolidate positions when the opportunities arise.

Fourth, we have restructured our departments.

The Department of Parks was separated from Public Works. The New Parks and Recreation Department has resulted in greater efficiencies and savings.

I have appointed new department heads at Parks and Recreation: the Water and Sewer Utility; Planning and Engineering Department; and the Public Safety Department. In addition, every department has restructured their own work staff.

I am proud to report that our departments are now working together as one cohesive unit. The challenges presented by the weather in 2011 – whether it was the long forgotten blizzard, Hurricane Irene or the wet damaging snow storm of October, our employees pulled together to help each other in providing services and assistance to our residents.

Fifth, we negotiated new contracts with our unions.

In recent years, we negotiated tough but fair contracts that called for pay freezes for a number of years, health care contributions and increased pension contributions by the employees, and other give backs.

In addition, outside professionals, like lawyers and engineers were hired at reduced rates and I instructed our in-house engineering professionals to become more involved in our capital projects, further reducing expenses.

Sixth, we dissolved the Sewerage Authority.

When I examined the rationale for the township having an independent Sewerage Authority, I realized that the premise for such an autonomous organization no longer made economic sense. I asked Lou Neely, the township’s chief financial officer, to develop a financial and management plan that would dissolve the Sewerage Authority and brought it back within the township’s control. Lou did not disappoint me and his plan was brilliant. This action has saved the utility’s users hundreds of thousands of dollars and stopped a rate increase from occurring. In addition, the combined Water and Sewer Utility provide greater efficiencies on how we use our work force and thus provide better services to our residents. I would like to thank Leigh Jones, the utility’s director, for seamlessly making this transition occur.

Seventh, we have seen resurgence in economic development.

The state’s economy is still facing challenges but East Brunswick is doing well and growing. The Golden Triangle Project is moving forward; Summerhill Square is booming with new stores like Annie Sez, Five Below, ULTA, Pier One, Torrid, A Muscle Maker Grill, and a beautiful, relocated David’s Bridals. Three new eating establishments, including a Chipotle, are being constructed. The Chrysler Jeep Dodge Dealership is back in business; Stop N Shop opened a new store; Harbor Freight Tools is opening a branch; Penny’s underwent a major renovation and opened a Sephora in its store; Panera Bread and other new merchants are moving into Brunswick Square Mall; and the Mall is adding a new entrance. An application is pending before the Planning Board for the construction of a new modern drug store on Route 18; and there are more development plans in the pipelines. The vitality and strength of the East Brunswick market has not been unnoticed by the business community. This economic resurgence provides our residents the opportunity to shop locally, and also provides much needed revenue growth to the township’s budget, thereby reducing the tax burden of our residential component. My “Shop East Brunswick” program continues to be successful and the new East Brunswick Business Alliance is increasing its presence in town.

Eighth, we have continued to make investments in our infrastructure.

I understand the challenging times continue to plague our nation – thus the economic restructuring I instituted and just described. But I believe it is equally important to continue to make investments in our community to protect our property values and the level of services that our residents demand.

2011 saw the opening of the comfort station at the Heavenly Farms Athletic Complex and the rehabilitation of the Pine Ridge Park, which will be completed this spring. Funding for both these projects was assisted by grants from the Middlesex County Board of Chosen Freeholders and I am thankful for their continued support of East Brunswick.

We continued to repair miles of roads in our residential neighborhoods. We worked hard to comply with the 2013 FCC mandate of narrow band radio technology that will ensure better coverage for our first responders. After years of hard work, the price tag for this system was reduced by millions of dollars.

Our financial strength has allowed us to borrow money at an interest rate of less than one percent. This is the time to continue to make investments in our future as this rate is historically low.

Next month I will present a capital budget to the Township Council that will ask for less money in a capital budget over 15 years. I have reviewed every departmental request and I am only supporting projects that are critical to meet the needs of our residents. We must continue to improve our residential streets. We must continue to ensure that our fleet of municipal vehicles is maintained; we must replace an aging, leaking library roof. These are not frills but are absolute needs. I strongly encourage the Township Council to fund these valuable projects.

As I look to our future in 2012 and the years beyond, East Brunswick – the town we call home – the town we raise our children in – is doing extremely well and our future is bright.

Even though I continue to work on the 2012 Operating Budget, I know that each taxpayer will pay less money to support the municipal government this year. We will continue to offer the same, if not better services.

I will continue to cut spending where appropriate. On the other hand, some areas will see additional monetary resources. For example, three years ago, I reduced the funding to the library given the high level of its monetary reserves. I want to congratulate Mary Ellen Firestone, the library’s director, and the Board of Trustees for creatively maintaining the serves provided by the library over this time period. However, I believe a strong vibrant library is not a luxury; it is a necessity. Thus in 2012, I will increase funding for the library.

This year, our Parks and Recreation Department will once again offer free entertainment throughout the year for all to enjoy and a camp program second to none. Our Public Safety Department will continue to protect and serve use under the leadership of Deputy Chief Bill Krause. The Department of Aging will continue to be the warm welcoming second home for our active adults. Our Public Works Department will continue to maintain our streets and clean up whatever Mother Nature throws at us.

Our Parking Utility is on solid footing with low parking rates, great bus service and bus tickets priced well below what other commuters have to pay. Our Aquatic Utility, Crystal Springs, will pay off its remaining debt in 2012. Our Water/Sewer Utility continues to offer low rates.

East Brunswick is, as I said, on strong financial footing for 2012 and future years. However, one wild card is the continued loss of property values as the national housing market continues to struggle. Tax appeals have cost our municipal government well over a million dollars last year. The system is unfair; municipal taxes are but $0.18 of your overall tax dollar but yet when the township refunds taxes, we are responsible for every penny. It is like I have to transfer over one million dollars of the township money to the Board of Education amongst others. This loss of municipal revenue is unfair and I continue to call on the state legislature and Governor Christie to correct it. In the interim, I will work with Frank Colon, our tax assessor, on how best to correct the inequities of the tax structure.

As mayor, I work with a great group – our municipal employees. I would like to publicly thank them as they work very hard, with great care and dedication, to ensure that the high level of services our residents demand are provided in the best manner possible. I am more appreciative of their efforts.

I would also like to take this opportunity to thank the many volunteers of the three fire districts and Rescue Squad who every day are on the front line, working to help our friends and neighbors. Their dedication to our community is quite remarkable and too many unfortunately take them for granted.

In conclusion, I am very proud of where East Brunswick stands tonight. We are a strong, growing, vibrant, diverse community. We are a community of individuals who unselfishly volunteer their time and creative minds to ensure that opportunities about for all of us, whether young or old. We are a caring community whose municipal government has done its homework, and can say that the economic corner has turned, and the future will continue to get better.

Lastly, we continue to have our men and women of the armed forces in harms way, to ensure the freedoms we enjoy. I ask that you join me in continuing to keep them and their families in our thoughts and prayers.

Thank you and God bless.

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