Council Adopts Municipal Budget with 2.89% Tax Increase

In a night filled with big news and in-depth discussions, the New Providence Borough Council unanimously adopted the 2011 Municipal Budget that includes a 2.89% tax increase, resulting in a $73 increase for the average assessed home, and $17.5 million in expenditures.

Council President and Finance Committee Chairman Michael Gennaro laid out the plan in full detail, showing a detailed Power Point and fielding questions from the council. Gennaro said he was pleased with the current budget, and that the council’s hard work coupled with community sacrifice led to great results.

“In the entire time I’ve been doing this, this has been the least painful budget we’ve had to implement,” Gennaro said. “We haven’t had to lay anybody off, we haven’t had to seek givebacks from anyone, we haven’t had to furlough people. This is really a budget where we reap the rewards of the pain that we suffered over the last few years, when we did make some painful decisions and did do some of the things we discussed.”

Gennaro added that it has always been in the council’s interest to look to the borough’s future. When laying out an annual budget, the council looks ahead at least five years, anticipating as many necessary expenses as they can.

The proposed budget allows New Providence to boast the second lowest tax increase out of eight peer communities, with 20,000 residents or less, in Union County, and spend $967 per person on a per capita basis. The 2011 tax for the average home is $2,582, which includes the $73 tax increase on the average assessed home of $282,000. The $73 increase is in line with the state average. 

Gennaro spoke of the finance committee’s objectives when approaching the budget. The document aimed to maintain essential municipal services, seek out efficiencies in order to contain the operating costs, keep municipal tax increases within affordable limits for residents, and seek grants to help with operations and capital improvements.

The biggest challenges came in the form of unexpected increases. Pension contributions rose $184,000, while the cost of winter’s heavy snow removal bulked up the public works budget by $155,000. The council was able to meet their mark due to two municipal retirements this year. The full-time positions were subsequently eliminated, saving the borough upwards of $175,000.

Revenue was also generated through a shared court system with Berkeley Heights, which raked in about $24,000. Other shared services included the sharing of mobile police computers between the police and the municipal court, and joint Board of Health services with neighboring Westfield.

New Providence also saw savings with technological innovations. Tech enhancements, including a new website that is updated with council agendas and other important borough documents, have minimized printing costs. The borough is also looking to upload video recordings of the council meetings to the website, so residents can keep up with town issues from the comfort of their own homes.

New Providence will continue road resurfacing and infrastructure improvements this year, spending $1,450,000 on capital improvements.

Mayor J. Brooke Hern praised the work of the finance committee, and acknowledged the efforts of every council member.

“This is a budget that has been arrived at through the contributions of everyone sitting up here,” Hern said. “Every single member of the council looked at the numbers and every line item, and every council member worked very hard this budget year to arrive at a budget that is reasonable. I think everyone should recognize the effort of the governing body collectively.”