Depleted surplus hikes taxes in '06

BY LINDA DeNICOLA
Staff Writer

TINTON FALLS - Residents of a high-end development, outraged over a 27 percent increase in the municipal tax rate, urged the borough council to find ways to make cuts in the $19.5 million spending plan for 2006 during a public hearing last week.

With $9,516,865 to be raised by taxes, the tax rate would increase from 59 cents for each $100 of assessed property valuation to 75.5 cents.

The average residential property owner with a home assessed at $152,303 will see an increase of $242 on their tax bill of $1,150. A homeowner whose property is assessed at $200,000 will pay an additional $360.69 and a home assessed at $300,000 will pay $541.04.

Council President Therese Cahill reminded residents that the council was not going to vote on the budget until it hears from the state about the amount of extraordinary aid the borough can expect, which could be an additional $1 million. That would reduce the tax levy and require an amendment, she said.

Mayor Peter Maclearie said there will also be savings from the new health care provider the borough recently switched to, which has yet to be computed.

"We're looking into the exact savings, then there will be a budget amendment," he said, adding that the process is not complete.

According to many of the residents from the Willowbrook Farms development on Swimming River Road, they will see a $2,000 increase on their current tax bills of $15,000-$20,000 if the budget goes through as introduced.

The residents from the four-year-old community of 110 upscale homes packed the council chambers to express their outrage over what they see as a disproportionate tax bite because their newer houses are assessed closer to market value.

One resident said there are 11 houses for sale in their development and they are not selling because the taxes are so high.

Ray Tomek, a Willowbrook resident, said the increase in his already high taxes will be about $2,000 a year. He complained that Tinton Falls is not worth taxes of over $20,000 because it's not Rumson or Navesink.

Stephen Pfeffer, the borough's chief financial officer, said during his budget presentation that most of the borough's departments kept their budgets in check. The Division of Parks saw the highest increase in departmental budgets, he said, prompting residents to complain about the expanded recreation program and the cost of taking care of the new soccer fields.

When the budget was introduced last month, Maclearie blamed the prior administration's practice of "chasing new ratables, which led to increased costs

that can no longer be offset against the ratables. Their decision to utilize over 94 percent of the existing surplus has left me no choice but to increase taxes to stabilize this and future budgets," he said.

Pfeffer explained at the time that borough officials are trying to put some money back into surplus because it was taken down too low.

Maclearie said on Monday that borough departments have been pretty tight on their spending even though some departments have had to take on additional work using the same number of employees.

"We're asking them to do more with less," he said.

He explained that the council has been looking at the budget for eight weeks.

"We did take a look at how we can cut spending, but we've had zero tax increases for the past couple of years."

Maclearie said that he started to prepare residents that there would have to be a tax increase in their tax bills last year.

"We raised the flag as early as we could," he said.

Pfeffer explained that the budget is driven by services.

"This budget was prepared providing the same services to the public. We have discussed reducing services going forward," he said.

Rita Cross of Fern Court, asked at the hearing if the increase could be spread over a longer period of time.

Pfeffer responded that he would take it up with the mayor. He noted that if it was up to him, there would never have to be a surplus in any budget. He added that it is the biggest problem that municipalities have.

Councilman Brendan Tobin said after the hearing that he understands the frustration that residents feel.

"Those people, and everyone else, want tough answers to a tight budget, not showboating," he said.