News
AH Budget Calls For 1.5 Cent Tax Increase
By John Burton
ATLANTIC HIGHLANDS - The Borough Council recently introduced its proposed 2009 municipal budget. If approved, the budget will require a one-and-a- half cent increase in the municipal tax rate.
Borough Auditor Thomas Fallon presented a summary of the $7 million appropriation, explaining that the proposed budget is well under the state-mandated budget caps. "It means you're in good fiscal shape," Fallon explained. "They're really no gimmicks in this budget."
Borough Administrator Adam Hubeny termed the one and a half cent increase per $100 of assessed property values "really, not bad.
We're trying to maintain and keeping next year in mind," Hubeny said.
According to Hubeny, the average borough home assessed at $386,000 would experience a $56.28 increase in municipal taxes for the year.
The increase would mean the municipal tax rate would go from 0.597 cents per $100 to .612, resulting in an annual tax payment of $2,360.70 for the municipal portion of the tax bill on a $386,000 home. Hubeny said the increase was due to rising fixed costs, such as health insurance and pension contributions for borough employees, previously approved collective bargaining agreements with union workers and utility costs.
When the budget process started in January, "For the most part all department heads kept their budgets flat with the exception of fixed costs," Hubeny said.
The end result, with this budget was "spectacular," he said.
Hubeny pointed out the borough is expecting a $10,000 reduction in state aid this year.
The budget also contains a $300,000 provision, earmarked for a five percent down payment for the projected $6 million bond for the municipal complex/public library construction project.
"You guys did a good job," Mayor Frederick J. Rast III said to Hubeny and the council's finance committee. "It's what keeps our town going."
The council has scheduled a public hearing on the budget for June 10.
