State aid to Red Bank cuts taxes
BY LAYLI WHYTE
Staff Writer

RED BANK - An infusion of $125,000 in state aid will lower the tax rate for borough taxpayers by 1.2 cents per $100 of assessed property value.

Borough Interim Chief Financial Officer Bruce Loversidge said that he received word last week from the state that the borough qualified for the extraordinary aid, which, he said, can only be used for tax relief.

"This aid must be used to reduce taxation," Loversidge said last week, "and the borough cannot adjust its budget to appropriate this money toward anything else."

Loversidge said the municipal tax rate stands at 83.6 cents after receipt of the aid, including the 4.4-cent increase in this year's budget this year.

"It's a good thing for Red Bank," he said. "It's a good thing for taxpayers."

In 2004 and 2005, the borough applied for and received $100,000 in extraordinary aid from the state.

In order to qualify for this aid eligible municipalities must demonstrate that circumstances beyond their control caused their respective tax rates to spiral upward.

According to Borough Auditor David Kaplan, mistakes made by the borough's former CFO added 4 cents per $100 of assessed property value to the 2006 tax rate.

The Department of Community Affairs oversees the grant process for Extraordinary Municipal Aid through its division of Local Government Services.

The council is expected to officially accept the extraordinary aid at its next meeting scheduled for Aug. 14 at 5:30 p.m. at the municipal building at 90 Monmouth St.