Shrewsbury budget increase less than '06
Public hearing on $7.9M budget set for May 21
BY LINDA DeNICOLA
Staff Writer

Shrewsbury

SHREWSBURY - Last week the Borough Council introduced its 2007 municipal spending plan, which calls for an increase of 3.5 cents in the tax rate, somewhat less than last year.

Thomas X. Seaman, the borough's chief financial officer, said the proposed budget of $7,906,062 represents responsible planning.

"Our budget is a bit lower than last year. We've worked had to maintain a steady budget," he said. "Our budget hasn't spiked in the five years that I've been here."

The public hearing on the budget is scheduled for May 21 in borough hall.

Last year's $7,403,640 spending plan included a total amount to be raised by taxation of $5,405,764, which equated to a 3.9-cent tax rate increase.

The budget this year includes a tax levy of $5,763,338.

According to Seaman, the average home is assessed between $350,000 and $400,000. The tax increase on a home assessed at $350,000 would be about $304.

The total tax increase, including the school, county tax and open space tax, is $18,998,278, an increase of 8.7 cents.

He explained that the borough's portion is 71.4-cents, the local school portion is 81.3 cents, the regional high school portion is 45.2 cents, the county portion is 36.4 cents, and the open space tax is one penny.

He added that each penny raises $80,742.

Seaman said the biggest increase was pension increases of over $112,000; a debt service increase of $130,000; insurance increases of $25,500, which is actually about half the increase of last year; and salary increases of 4 percent.

"These items together account for most of the increase," Seaman said.

He explained that the borough has a capital plan in place for the next five years.

"We're dealing with road projects and future needs, so we are not going to be hit with any big surprises. We're trying to fix a couple of roads per year," he said. "Our engineer has given us a list of priority roads."