Republicans suggest major cuts to budget
GOP says several township agencies, positions can go
BY JESSICA SMITH Staff Writer

With the municipal budget dividing the Old Bridge Township Council along party lines, two council members shared their opposing thoughts on various line items within it.

Councilwoman Lucille Panos, one of three Republicans on the town's governing body, said the budget should be trimmed by as much as $700,000 before being adopted. Panos and the other Republicans said the proposed municipal tax rate hike of 6.2 cents per $100 of assessed value is too much of a burden to place on taxpayers.

"I believe that taxpayers need relief now," Panos said. "In the current financial climate, we should have a barebones budget."

Panos documented her thoughts on each item in the budget, suggesting a number of cuts. If the cuts were adopted, the total tax levy could be cut almost in half, she said.

Councilman Pat Gillespie, a Democrat and head of the council's Finance Committee, addressed her statements, and defended the proposed numbers.

One cut the Republicans suggest would do away with the Old Bridge Redevelopment Agency. Although Executive Director Fred Kurtz volunteers for the position, paid only $1 per year, there were close to $200,000 in administrative, attorney and engineering costs last year, Panos noted.

Officials budgeted $75,000 for the agency this year, a number that matches the anticipated and actual costs for its operations last year. Panos said by doing more in-house and disposing of a bureaucracy, that amount could be cut from the tax levy.

Gillespie said the redevelopment agency is necessary because another township agency, the Economic Development Corp. (EDC), was not organized in a way that it could exercise redevelopment authority. State local housing laws give the agency its power, he said.

In terms of operational costs, Township Business Administrator Mike Jacobs said applicants in town pay for legal, engineering and other costs surrounding their proposed projects. Deep Run Corporate Campus, a project proposed on the town's Crossroads redevelopment tract, paid costs incurred through an escrow account, Jacobs said. The township's legal department is another point of contention. Panos pointed out that the department saw a $52,000 increase over what was spent last year, and suggested that be cut by $15,000.

"It could be in anticipation of the fact that we have all these developer-related lawsuits," Gillespie said. "If that's what it's for, than it's money well-spent, because losing those cases would be astronomically worse in the long run."

The township is in litigation with developers Alfieri, Brunetti and Woodhaven over large-scale developments. Also, Jerry Cernero, whose Jerald Development owns the Cottrell Farm tract, has threatened to file suit against the town after having his major retail and residential application rejected recently by the township.

After Dark, a nightclub that was fined by the township for hosting nude dancing allegedly in violation of zoning laws, has also initiated a lawsuit.

The EDC, which was not funded last year, is allotted $46,100 for 2009. The sum is for a film that seeks to attract new businesses to town by highlighting what Old Bridge has to offer. Panos expressed little faith in the venture.

"They have not brought in any [tax] ratables," Panos said of the EDC, "and we don't need a movie."

Gillespie, a member of the EDC, said the Republicans have taken a "witch hunt" mentality about the agency because of the GOP's opposition to redevelopment plans on the Crossroads tract between routes 9 and 18.

"They don't have any ideas about attracting ratables," Gillespie said. "If they do, they keep them a secret. Any chance they get to take a cheap shot, they do."

He also defended the making of the film.

"That's a pretty short-sighted view," Gillespie said of Panos' opposition to the project. "I think it makes sense to make investments in tough economic times."

He went on to say that by making the movie now, the township will have things in place for when the economy turns around, and commerce again picks up. The EDC is also seeking grants to assist in funding the project, Gillespie said.

A $50,000 salary for the assistant business administrator is another suggested cut. Panos said the job is vacant and the money is an unnecessary expense.

According to Jacobs, the titles of special projects manager and assistant business administrator are virtually interchangeable, and whatever the position is called, it is necessary.

"It's a job that has been here since anyone can remember," Jacobs said.

Joseph Criscuolo served as assistant business administrator for a number of years until he resigned in September. Jacobs said now that Criscuolo is gone, the salary for the position will be reduced, and its title will be special projects manager.

"The intention is to try and fill that," Gillespie said.

Gillespie said the administration has a good record of getting projects completed, citing Peter A. Mannino Park and the YMCA being sited there as examples. He said a special proj- ects manager plays an important role in that.

Panos questioned a land sale in which the Old Bridge Housing Authority is purchasing land from the township for the construction of housing for veterans and seniors. Panos said the sale is listed in the budget as a $1.2 million revenue item, while the contract for the land sale has the transaction at $1.5 million. Panos questioned if the difference will be placed in surplus to help reduce taxes next year at election time.

"I can't help but be suspicious that having a surplus for next year's elections may be a goal," Panos said.

Township Attorney Jerome Convery explained at the Dec. 15 council meeting that the land, being purchased for $100,000 per acre, was still being surveyed in order to determine how many upland acres existed within the tract. The leeway in the final price allowed for flexibility until the final acreage was determined, he said.

The largest proposed cut was in the area of group insurance. Overbudgeted by about $360,000 last year, the proposed $8,614,590 adds over $250,000 to the overshot amount. According to Panos, the total should be reduced by $300,000.

"That makes no sense whatsoever when you have certain facts, like that we're having an increase," Jacobs said.

According to Jacobs, this year brought the largest increase in insurance that the township has seen in a number of years. That included a 12.5 percent increase in health coverage and a 26 percent increase in prescription drug coverage, he said.

The township's parking utility is another budget item brought under scrutiny. Panos pointed out that the proposed budget allocates $37,500 more than the actual amount spent in the department last year.

"[The] parking utility should basically be disbanded," Panos said. "It has a budget of $177,984 for one full-time and one part-time employee. There should be an automated parking system nowadays in parking facilities. In the very least, cut the $37,500 from this year's budget."

Gillespie explained that the parking utility creates revenue for the township. According to Mayor Jim Phillips, it brought in about $100,000 for the year.

Still, Panos called the department a "joke," saying its employees are unnecessary.

"This is, again, a partisan witch-hunt effort to target one employee," Gillespie said.

According to Gillespie, a human presence is needed at the commuter parking lots in order to do things machines cannot, like fix broken lights; pick up garbage; report vandalism; restripe parking spaces when needed; and generally keep an eye on the facilities.

"It's not something the taxpayers pay for," Gillespie said. "This is something that the commuters pay for."

Panos also honed in on interlocal gas revenue. Since last year's revenue turned out to be nearly $130,000 more than was budgeted, Panos said the $240,000 in revenue anticipated this year should be increased by half, thus decreasing the tax levy.

"I think that's irresponsible," Gillespie said. "This is basically betting on oil futures. I just don't know if that's a wise choice. If you aggressivelymove and tweak, especially revenue numbers, and you fall short, you dig yourself into a bigger hole for next year."

Panos also wanted to make changes in budgeting the cost of gas for the township, pointing out that officials budgeted $150,000 more than what was spent last year. She proposed cutting half of that increased amount, which would decrease the tax levy by $75,000.

"Gas prices have gone back down, and we purchased more fuel-efficient vehicles," Panos wrote.

Again, Gillespie called such a move a "gamble," citing recent gas price fluctuations. He said just as they have decreased, the prices could increase again.

If adopted, the 6.2-cent municipal tax rate increase would mean a hike of $62 per year for the owner of property assessed at $100,000; $124 for the owner of property assessed at $200,000.

The council will vote to adopt the budget in February, at the earliest, according to Phillips. He said there is plenty of time to look at possible cuts, but expressed satisfaction with the formulation of the proposed budget.

"I am concerned about giving people a true budget," Phillips said. "The goal each and every year is to spend our money wisely and continue to reduce the burden on the taxpayer."