Town seeks state OK for tax levy increase BY VINCENT TODARO Staff Writer EAST BRUNSWICK - The township is asking the state Local Finance Board to grant a waiver so that this year's proposed tax levy can increase by more than 4 percent. The Township Council approved a resolution to request permission, which is needed because the tax levy for the proposed 2008 municipal budget is about $870,000 over what is allowed by the state, according to Township BusinessAdministrator James White. The state allows the tax levy to increase no more than 4 percent per year. This year's proposed levy is increasing about twice that percentage. The municipal budget, as proposed, carries an 11-cent increase in the municipal tax rate, but this could rise to 14 cents due to state aid cuts recently announced. The tax hike would have the owner of property assessed at $150,000 paying from $165 to $210 more this year for the municipal portion for the property tax bill, which also includes school, county, fire district and open space taxes. White said the township is asking for a one-time exemption to go over the 4 percent tax levy cap, and Township Finance Director L. Mason Neely said he was confident that the board would grant the waiver. The Township Council has also passed a resolution allowing it to exceed the state's cap on annual spending increases, which is 2.5 percent. The budget can now increase by up to 3.5 percent, which Neely said allows the town some flexibility. Neely said the spending and tax levy increases are needed in large part because of increased pension costs, which raised the budget by about $1.4 million. The discretionary portion of the budget, over which the township has more control, is increasing by about $500,000 over last year. Neely said the increases for both pension and discretionary spending made the tax levy cap waiver necessary. He said that if the town does not request the waiver, officials would have to make cuts that would affect services, programs and personnel. While awaiting a decision from the state, the council is reviewing the budget, which was presented by Mayor William Neary in February.Asecond budget workshop meeting is scheduled for March 31, and Neely said the budget will be adopted in mid-April. The council's resolution states that the tax levy waiver "is for the health, convenience, and betterment of the inhabitants of the township of East Brunswick." The 4 percent tax levy caps were imposed on towns, counties and school districts as part of legislation signed by Gov. Jon Corzine last year. The bill created a limited waiver process to address "extraordinary" increases in costs. The Local Finance Board, which is part of the state Department of Community Affairs, considers county and local government waiver requests, but Corzine directed both agencies to put the interests of taxpayers first in reviewing such requests. Councilwoman Nancy Pinkin asked during the Feb. 25meeting about the state board's criteria for granting a waiver. Neely said it looks at extraordinary events, and East Brunswick has three such situations to point to as justification. The township's fund balance is down by about $1.1 million; the amount brought in from construction fees has been reduced by about $500,000; and state extraordinary aid is down, from $200,000 last year to zero this year. Neely said that adds up to $1.8 million in losses, but due to steps taken by the administration, the township is only about $800,000 over the tax levy cap.