Old Bridge municipal budget keeps taxes stable
Councilman says tab relies too heavily on one-time revenue
BY JESSICA SMITH
Staff Writer

"All of these things will help us to give people property tax relief. The seeds we planted three years ago are now starting to bring fruit." - Jim Phillips Mayor

Old Bridge residents can look forward to a municipal budget with no tax increase next year.

Mayor Jim Phillips on Monday presented the 2008 fiscal year budget, which would hold the tax rate at 79 cents per $100 of assessed valuation.

"This budget continues my promise to maintain and improve upon the services our citizens expect and deserve," Phillips said. "This budget continues to invest in the future of Old Bridge."

While Phillips seemed to be confident in looking toward the future, Councilman Richard Greene said the budget lacks foresight in a couple of areas. His main concern was the anticipated revenue of $2.2 million from land the township may sell to Middlesex County for the construction of a long-term-care facility on the Crossroads redevelopment tract, off Route 18.

"This is a one-shot revenue source," Greene said. "It closes the budget [deficit] this year, but what happens next year? You have to make that up somehow the following year."

The Republican councilman, who is running for mayor against Phillips, a Democrat, said the anticipated revenue leaves the budget structurally unbalanced.

Phillips refuted the point.

"Each year, I hear, 'Well, he did it this year, but he won't be able to do it next year,'" Phillips said. "It's an opportunity we shouldn't pass up."

Phillips said the $2.2 million was a very conservative estimate for the sale of the land, but the number remains unclear because two different sites on the tract are being considered for the county facility.

Greene also pointed out what he saw as an inconsistency in Phillips' words and actions.

"The mayor, on one hand, is saying he's preserving open space," Greene said. "He's selling some township land on the south end of Old Bridge. I think this will be the beginning of the destruction of the rural area of South Old Bridge. I think we need facilities like this, but I don't think it should be located in this area of the township."

The mayor chalked up Greene's points to politics.

"This being the political silly season, Rich Greene can say a lot of things. When we were talking about having this be the corporate headquarters for the Jets football team, Rich was all for it."

The Crossroads property was purchased by the township in 1997 for the express purpose of the economic development of the township, Phillips said, pointing out that its location near major roadways makes it an appropriate place for such development.

"Our record of preserving open space is outstanding," Phillips said, adding that during his three years as mayor, 650 acres of open space have been preserved.

Phillips said Old Bridge is attracting major corporations that wish to locate their headquarters there, including one Wall Street firm. Plans to bring a hotel to the property are still in the works.

"These are all things, I think, that enhance Old Bridge," Phillips said. "All of these things will help us to give people property tax relief. The seeds we planted three years ago are now starting to bring fruit."

Other issues Greene had with the budget were with the estimated collection of 98 percent of real estate taxes levied, and an estimated increase in revenue from permit fees collected by the construction office.

"The budget relies on a continued good economy," Greene said.

Though Greene said the real estate tax estimation was within reason, he felt it could present a problem if the economy took a downturn.

"I caution the mayor and [township Director of Finance and Chief Financial Officer] Himanshu Shah on that estimate," Greene said.

Despite the flat tax rate, there are increased expenses in several areas. Litigation with three residential developers - Brunetti, Alfieri and Woodhaven - have cost the township $108,000 so far.

"It's probably going to be the same or more next year, because it's ongoing," Shah said.

Expanded recreational facilities and senior services have represented some of the expenditures for the year, as well as maintaining the police force at its full strength of 104 officers, and continuing to improve and implement the paving, curbing and drainage program throughout the town, Phillips said.

The state-mandated formula for library funding has resulted in a 15 percent increase in what the township must pay the library for its yearly operations. The additional $300,000 appropriated to the library will bring its annual budget from $2.1 million to $2.4 million.

"It made it that much more difficult to hold the rate," Phillips said.

The funding formula has municipalities allocating $1 to the library for every $10 collected in municipal taxes, Phillips said. Funding libraries is presenting a problem for some municipalities, however, because of this year's state-imposed 4 percent cap on municipal spending.

"I think that money that goes to the library should be outside of the cap," Phillips said.

While he acknowledged the value of the library, Phillips said he does not want to end up in a position where police officers would have to be laid off to hire librarians. Township officials are planning to apply for state aid to help deal with the library issue, and will make their case before the state Department of Community Affairs.

"Whether we're successful in that will determine the final outcome of the budget," Phillips said. "If the state aid does come through, that will actually result in a [1 cent] tax decrease."

The final budget is slated to be adopted by the Township Council some time in October, when state aid figures come in, Phillips said.

The municipal tax rate is one component of a homeowner's property tax bill, and is separate from school, county, open space and fire district taxes.