Boro gets no state aid; tax hike set at 7 cents
Public hearing on revised municipal budget set for Monday
BY MICHAEL ACKER
Staff Writer

The Sayreville Borough Council is expected to vote next week on a municipal budget that will bring an average tax increase of $100.

The 2007 budget was finalized after the state announced last week that the borough will not receive any extraordinary aid this year.

Wayne Kronowski, the borough's chief financial officer, said the budget was prepared earlier this year without anticipation of extraordinary aid in the event that it was not awarded.

The $47.9 million budget is up $3.4 million from last year. Kronowski said at Monday's council meeting that the tax rate increase stood at 13 cents in the budget introduced earlier this year but has been lowered to 7 cents per $100 of assessed valuation.

The council unanimously approved a resolution to hold a public hearing Monday.

"There is a good chance that we will adopt the budget that same night," Kronowski said.

The state Department of Community Affairs said one of the reasons the borough did not receive extraordinary aid was because the town could apply some of its surplus to this year's budget items, Kronowski said. He said the borough took the department's advice and brought the tax rate increase down to 7 cents.

"Although it will reduce the tax increase for this year, there is going to be that much less revenue to apply to next year's budget," Kronowski said. "It is not without its consequences."

Councilman Rory Zach, the council's finance committee chairman, cited the state-mandated pension contribution as one of the highest expenses in the budget.

"Short of cutting positions and services, there is nothing else to cut," Zach said. "The increase in revenues is not keeping up with the increase in expenses."

Zach said the municipality can no longer count on budgetary assistance from the state.

"You can't rely on extraordinary aid," Zach said. "The state is in a budget crunch."

"You have to manage for the long term," Zach added. "You can't manage election to election."

This is the first time since 2001 that Sayreville did not receive extraordinary aid, Kronowski said.

For next year, he said he will be looking for other sources of revenue, and officials will also have to meet the state's new 4 percent cap on budgetary increases.

"It seems that every year either the economy or new state guidelines impact the budget," Kronowski said.