Putting Together 2012 Budget Didn't Come Easy, Mayor And Administrator Say

Berkeley homeowners will not see any hike in their municipal taxes, although the 2012 total budget is slightly higher this year, Township Administrator Frederick Ebenau said.

Ebenau and Amato had to deal with leftover snowstorm costs from 2011, jumps in health insurance premiums, payments for successful tax appeals and a drop in ratables, which led to $1.4 million in deferred charges.

"If we can get through this year without any major disasters, we are going to be okay for 2013," Amato said. "These deferred charges are basically a one-shot deal."

Ebenau and Amato said this year's $40,117,110 budget total is "slightly misleading" because the leftover expenses from 2011 had to be carried over into 2012.

"If you back it out, it's actually less than last year," Ebenau said.

Snowy 2011 winter hurt

The township racked up nearly $1 million in snow removal costs in 2011 - the last year of Mayor Jason J. Varano's administration - compared to roughly $35,000 in 2012. That meant $477,222 had to be taken care of in the 2012 budget, Ebenau said.

"Emergency appropriations had to be done last year because of snow events," he said. "The deferred charges have to be raised in next year's budget. We found out we were short because of snow events."

The municipal tax rate will remain at roughly 50 cents for each $100 of assessed valuation.

The amount to be raised by taxation in the 2012 budget is $25,917,605,  $15.89 less than in 2011. That guarantees there will be no increase in municipal taxes this year, Amato said at the June 12 Township Council meeting.

The budget will be $1.4 million under the state-imposed 2 percent cap on municipal spending increases each year, Amato said.

There will be no layoffs or employee furloughs and municipal services will be maintained.

The 2012 budget leaves only $10,000 in the surplus account. Municipalities, unlike school districts, do not have to keep a certain percentage in the surplus account, Ebenau said.

"There is no surplus to be had," he said. "$10,000 in a $40 million budget is zero."

Revenue sources

Ebenau and Amato are hoping to sell off $250,000 in township-owned, non-conforming lots to adjacent property owners this year for some much-needed revenue.

"The most important thing is to get them on the tax rolls," Amato said.

The township's ratable base dropped from $5.15 billion in 2011 to $5.12 billion in 2012.

Municipal officials are allowed by state law to tap into five percent of surplus from the Berkeley Township Sewerage Authority and the Municipal Utilities Authority to offset costs in the 2012 budget.

The township will receive $430,000 from the Berkeley Township Sewerage Authority and $88,00 from the MUA, Ebenau and Amato said.

And while contractual employees now currently contribute 1.5 percent of their salaries to health insurance premium costs, that percentage will hopefully increase when their contracts expire on Dec. 31, 2013, Ebenau said..

Capital improvements for 2012 include $750,000 in road improvements, upgrades to the township police department's emergency notification system and $25,000 for improvements to Town Hall, Amato said.

"Our buildings have been grossly neglected over the past few years," Amato said at the council meeting.

The heating and air conditioning system in the 37-year-old Town Hall is "antiquated," and other repairs need to be made, the mayor said.

"Everything is original," Amato said. "Except the paint in my office."

Amato purchased the paint and redid his office at no cost to the township shortly after he was sworn in on New Year's Day.

Amato also credited the council's finance committee - Robert Ray, John Bacchione and Kevin Askew - for helping to put the budget together.