So. River municipal tax rate to rise 7 to 12 cents
BY MICHAEL ACKER
Staff Writer

SOUTH RIVER - The Borough Council has introduced a budget that could see as much as a 12-cent increase in the municipal tax rate.

Though the increase could be reduced if the state grants extraordinary aid to the budget, the owner of the average borough home, assessed at a value of $83,189, would pay $103 more for the municipal portion of the property tax bill for 2006.

The tax rate would go to $1.60 per $100 of assessed valuation, with the owner of the average home paying a total of $1,327 in municipal taxes, compared to last year's $1,224.

The municipal budget totals $13.66 million.

Mayor Robert Szegeti noted that he and the council are still looking at the budget.

"This is a temporary budget until we find out whether or not we received any extraordinary aid. It was a long process, because we tried to limit the expenses and I know that the finance committee, [composed of council President and Finance Chairman David Sliker with council persons Linda Ejk and Richard Reichenbach] put a lot of time and effort into getting the numbers down to where they are today.

Szegeti noted that some departments may get less money than they had last year, but added that no cuts or lay offs are in the temporary budget.

"These are not cuts. Some departments will just be getting less money. Every year they have to justify their budgets and expenses. Certain supplies are required every year," Szegeti said, adding that sometimes expenses are no longer needed by the department.

According to Szegeti, the budget is also a collaboration between Business Administrator Joseph Kunz and Samuel Klien Partner Gerard Stankiewicz.

Sliker gave a presentation on the budget at the council's May 24 meeting. He reminded the public that the figures offered in the budget slide show did not reflect state aid.

"The increase in the budget is primarily due to insurance costs," Sliker told the Sentinel, citing health insurance for employees as an example. He added that the state has mandated extra money for pension funds this year after then-Gov. Christine Todd Whitman lowered the contribution, Sliker said.

"Our payment contribution to the state pension fund had been reduced and we now have to make up for that, so it is greater than usual," Sliker said. "Our operating expenses have remained in line, with only a minimal increase. The average annual operating expense increase has averaged 5 percent per year."

No cuts have been proposed, and the budget presentation offered a summary of 2006 capital projects, which include a river walk, the expansion of Causeway Park, funds for the new human resources building, and the purchase of a bus for the Office on Aging.

"Primarily, all services are remaining the same," Sliker said. "We have only introduced the budget. We asked for $250,000 from the state, and I believe we will be successful with [that request]. The budget is very tight and we demonstrated that we need [the aid]."

If the state grants the borough $250,000, then the 12-cent increase will be reduced to roughly 7 cents per $100 of assessed valuation.

"I think we have done an outstanding job stretching taxpayer dollars and getting the best bang for our buck. If you compare us to other municipalities, we are certainly more competitive. It is more cost-effective to live in South River than anywhere else."

Sliker cited South River as having the third-lowest property taxes among municipalities in Middlesex County. Part of what helps the borough is that fire, rescue, sanitation and sewer services are built into residents' property taxes, he said.

"I know it is difficult," Sliker said. "We all have to pay taxes, and none of us like to, but we strive for a tight budget to stretch tax dollars as far as we can. I think people realize that."