The commissioners are proposing a $134 tax increase in the introduction of the 2012 borough budget.
The $15.2 million budget was approved unanimously by the commissioners on first reading, and a public hearing will be hosted on Tuesday, April 24.
The local tax rate is increased by about 2.72 cents over last years rate, Commissioner Jeff Kasko said. For the average assessed home of $491,359, this would be a $134 more than last year’s tax bill, he said, with a local purpose tax rate of 46.9 cents per $100 of assessed property value.
The increase in the local purpose tax rate falls within the 2-percent cap that was initiated by the state a few years ago.
The total budget is increasing a little more than 17 percent over last year’s, but spending is virtually the same. Operating expenses, Kasko said, are increasing by less than 1 percent over the 2011 amount.
“We’re in a tough situation where our revenues may go up or go down each year, but our appropriations are definitely going up each year,” he said.
Appropriations are increasing, he said, but not due to fiscal irresponsibility from the borough.
Unfunded mandates — such as increases in health insurance costs — keep rising each year, Kasko said.
Additionally, a decline in ratables for 2012 and a decrease in the rate of current year tax collections have proved to be difficult challenges for the budget, Kasko said.
In 2012, employee salaries, benefits and pension payments — a little more than $7 million in total — make up about half the total 2012 budget.
“We believe this is a responsible budget that reflects the reality of current state fiscal requirement and the economic conditions facing all taxpayers. We can no longer fund every program, service and initiative that residents desire. Unlike previous years, we are now faced with making significant cuts in programs and services in order to stay within the state-mandated 2 percent property tax increase cap,” a message on the borough budget reads.
Prior to the final reading of the budget, Kasko said he would host a budgetary information session on Wednesday, April 18, at 7:30 p.m. in the borough hall auditorium for interested residents.
Kasko will give a detailed budget presentation and will also field any questions that taxpayers may have.
In other borough news:
Commissioner Ed Borden said he and Board of Education President Steve Weinstein met with Bancroft representatives for a very brief and introductory meeting to discuss the possibility of the borough and school district purchasing the Bancroft campus for public use.
The board of education is taking the lead right now, Borden said, and it’s the hope that a referendum could be presented to borough voters by September to approve several million dollars for the purchase of the campus.
There are only four times a year the borough can put a referendum on a ballot, Borden said, so hopefully something can be decided before September.
In a February meeting, the board of education said the entire plan would likely cost about $16.8 million to purchase the property, demolish the current buildings, and make several other improvements at the site.
For a homeowner with the average valued home in the borough of $491,000, it would result in an annual school board tax increase of $268 for the next 20 years at a 4 percent bond.
Finally, Borden announced the issue of overnight parking would be discussed at length at the next commissioners meeting on Thursday, April 5 at 7:30 p.m. at borough hall. Borden asked that people make note of the different date of the commissioner meeting.
The police department and commissioners are going to look at the pros and cons of keeping the overnight parking restrictions for Haddonfield.
It’s been found, Borden said, that an inordinate amount of time is being spent on enforcing the rule and also administratively, as there is rampant confusion over who can qualify for a parking permit.
The issue will be discussed at length at the next meeting.
