Cedar Grove Council Introduces $12.3 Million Spending Plan

The Cedar Grove Township Council introduced its 2011 municipal budget last night, which is virtually flat over last year, at just $225,000 more than last year's total expenditures.

The $12.3 million spending plan would be supported by a $8.6 million tax levy, resulting in an average per-household local tax increase of $58.41 on a home assessed at the township average of $480,000.

The tax impact was blunted through efforts by Township Manager Thomas Tucci and Township Chief Financial Officer William Homa, who found reductions totaling nearly $33,000 in library appropriations ($3,800), police department salary adjustment ($24,811), and tree and stump removal ($5,000).

In total, the township reduced its employee headcount by five: three police officers,  one Department of Public Works employee, and changing a full-time Township Hall position to part-time, which helped offset the more than $400,000 in uncontrollable expenses.

The majority of the increase in this year's $12.3 million spending plan comes from contractually obligated salary increases for police officers ($80,000), increasing pension and healthcare costs for municipal employees ($150,000 and $104,000, respectively), and the purchase of police vehicles ($83,000), Tucci said at the council's March 7 staff meeting.

Councilman Joseph Chiusolo said Tuesday that increasing healthcare and pension costs "handcuff" the council when it comes to keeping costs down.

"We've done well in reducing the size of the budget, but the two restrictions prohibiting us from reducing it further are pension costs and health insurance costs. Each year those costs continue to go up."

He also said making prudent cuts presents an especially difficult dilemma when the township's expenditures are already bare-bones.

"When you look at the police department, the DPW, and Township Hall employees, those three segments are right now at a bare minimum," he said.

"We are a very lean township, there's really nothing more we can cut other than taking away paper clips and copy paper."

Chiusolo also indicated he hoped in years to come the state would give more control to local government over the township's nearly $800,000 library budget, a figure set by state statute.

"Those dollars are tax dollars the people of the township have to pay. as with all budgets they need to be looked upon. I'm sure looking at the library budget there could be some efficiencies gained by the way the funding mechanism is done."

The council must approve the budget by April 22.