Mayor's 2011 Budget Message
-Continuing Fiscal Discipline »Introduced 2011 Budget
-Budget Decrease Proposed »2011 Budget Presentation (Council Workshop April 26, 2011)
I am pleased to formally transmit my second budget to Council since becoming Mayor. I am very proud of what we have accomplished in just 2 years despite an overwhelmingly challenging economic climate and the effective closure of Fort Monmouth, which will be completed later this year. We have to continue to maintain fiscal discipline as we still face a very uncertain future. We must continue to focus on only the most efficient provision of core municipal services such as providing police protection, trash and recycling pick-up, snow removal, and maintaining our municipal roadways. These simple priorities may not make headlines, but any other projects are luxuries we simply cannot afford at this time.
Cost Savings
In conformance with the Governor's 2% cap law, my proposed budget calls for just a 1.4% increase in the municipal tax levy while decreasing overall municipal spending by nearly $400,000 or 1.73%. My Administration actually cut approximately $1 million in municipal spending; however, these cuts were offset by extraordinary increases in State-mandated pension and health benefit contributions. For example, through my Administration's renegotiation of all collective bargaining agreements and other personnel changes, we have cut nearly $700,000 in salaries and wages 'In one year. Due to reasonable 'concessions by our employees, including both union and non-union salary freezes this year, and other strategic planning that began when I took office, we have been able to maintain essential municipal services while avoiding layoffs and furloughs. Further, through the refinancing of our debt and taking advantage of record low interest rates, my Administration has also reduced our annual debt service payments by $222,000 or 9.21%.
Cost Drivers
Aside from dramatic increases in State-mandated pension and benefit contributions, major cost drivers this year include expenses associated with snow removal and increasing fuel costs. We also experienced slight increases in some of our municipal services agreements for health and dispatch services. Finally, we are experiencing a spike in successful tax appeal judgments that are anticipated to increase with the complete closure of Fort Monmouth this year. The most significant of these tax appeals are the result of increasing vacancies in commercial office and industrial properties previously occupied by private contractors working for the Army. The Borough bears 100% of the burden of refunds from tax appeal judgments even though it only received approximately 23% of each refunded tax dollar. Accordingly, to keep taxes low for Borough residents, we must continue to foster sustainable economic growth in the Borough to make up for these losses until Fort Monmouth can be redeveloped over the next decade.
Conclusion
With these priorities in mind, which I believe to be in the best interests of the Borough's taxpayers, my Administration looks forward to assisting the governing body in its budget deliberations in the coming weeks.
Respectfully Submitted,
Mayor Michael Skudera
Borough of Tinton Falls
County of Monmouth
March 15, 2011