State aid keeps tax hike to 7 cents in So. River
BY MICHAEL ACKER
Staff Writer

"In these tough fiscal times we are grateful for every penny we receive from the state." - Robert P. Szegeti Mayor

SOUTH RIVER - Homeowners will face a 7-cent increase in the municipal tax rate as a result of the 2006 budget adopted recently by the Borough Council.

The municipal budget, adopted in a 4-2 council vote, stands at $13.66 million, which is an increase of about $600,000 from last year.

The tab brings the municipal tax rate to $1.54 per $100 of assessed property value. Taxes on the average borough home, assessed at $83,189, will be $1,287, which is $60 more than last year, according to figures from the borough's budget presentation.

The borough has learned it will receive $200,000 in state extraordinary aid, which kept the tax rate from going up $40 more on the average home.

"In these tough fiscal times we are grateful for every penny we receive from the state," Mayor Robert P. Szegeti said in a press release. "This money will go directly into our 2006 municipal budget to help reduce the tax burden for all our property owners."

The borough is also using $1.7 million from the surplus account to keep taxes from increasing further.

Part of the reason for the increase in expenses stems from the borough's contribution to the pension plan for its employees and police officers, which rose by $110,000, adding 2 cents to the tax rate, officials said.

Borough Administrator Joseph Kunz said one of the major uncontrollable costs in the spending plan is the $1.3 million for health and liability insurance. And similar to every other municipality, the borough is also facing rising fuel costs, Kunz added.

The budget divided the council along party lines at its Aug. 28 meeting. Democrats Linda Ejk, JoAnne Dembinski, Richard Reichenbach and Council President David Sliker voted to approve the budget, while the two Republicans, Raymond Eppinger and John Krenzel, cast dissenting votes.

Szegeti, a Democrat, congratulated Sliker and the other members of the council's finance committee for their work on the budget.

Sliker addressed critics of the budget after the council's vote was taken.

"Either you are a part of the problem or you are a part of the solution," Sliker said. "Anyone can vote no."

Sliker said that rather than voting against the budget, opponents should offer concrete solutions to the issues that the finance committee faced in drawing up the budget.

Eppinger told the Sentinel that he opposes several items in the budget, including costs associated with the borough's redevelopment plan, the bike trail project and the separate bike park for trick riders. He said his concerns with the budget are a matter of priorities.

"We should have been represented on [the finance] committee," Eppinger said. "It is pure politics."

The lack of Republican representation in drafting the budget was one of Eppinger's major concerns.

"Everything we do has to go through them," Eppinger said. "The finance committee is the most important committee. John [Krenzel] and I make up 33 percent of the council, yet we make up zero percent of the most important committee. So, philosophically, we are out of the discussion."

Eppinger said he believes that the borough's highest-priority capital project is the library improvements. He added that paving roads should also be a high priority.

"Liability costs, salaries and benefits will go up," Eppinger said. "We have to deal with that and yet we are spending. We are going forward with projects, yet not taking into account future costs. We need to prioritize our projects."

Sliker said everyone had plenty of time to comment and have input on the budget.

"We gave three opportunities for everyone to comment," Sliker said, "and there was little input from anyone else."

Comments on the budget are welcome regardless of political party, Sliker said, adding that the average annual increase over the past 10-year period has been 5 percent.

Sliker noted that the borough is using grant money for the bike park and the walkway project. He added that the redevelopment project is designed to expand the borough's commercial tax base and bring in more revenue to offset taxes.

Sliker and Szegeti noted that 55 percent of the residents' property tax bill is for the Board of Education.

At the meeting, Dembinski said the state Legislature should take measures to adopt its budget earlier in the year so municipalities can know what to expect in extraordinary aid. She is still pleased that the state awarded the borough $200,000 in extraordinary aid.

Reichenbach agreed the borough had little choice but to wait for the state to come up with extraordinary aid figures before moving ahead with its own budget.

"I am not so happy [that we] have to send estimated [tax] bills," Reichenbach said, "but we do not always have a choice. I sure would like to see a different process, but I will wait every year if I have to for extraordinary aid."

Krenzel agreed that extraordinary aid will help the borough. However, he feels there are various areas of the budget where the borough could have saved money. He noted that he disagrees with the council's decision to hire the Jaffe Communications firm for public relations purposes.

Jaffe Communications is being paid approximately $1,350 a month, or $16,000 a year, Kunz said.

Szegeti said the firm writes press releases for the governing body, the police department and various borough commissions, boards and departments to notify the news media. He also mentioned the possibility of having the firm do a newsletter in the future.

Reichenbach said the firm is necessary because the borough gets too little coverage in the media. He added that the firm allows the council to notify the public better than it could otherwise.