Municipal Budget Introduced, But Expected to Undergo Extensive Changes

The South Brunswick Township Council approved the introduction of the 2011 municipal budget earlier this week, but the finished product is expected to be very different from where the budget stands today.  

The budget was introduced to comply with state guidelines, but meetings with the township's various department heads will be ongoing over the coming weeks and months as the council attempts to reduce the proposed 8-cent tax rate increase.

"We still have a long way to go," said Mayor Frank Gambatese.

The proposed budget cuts spending by about $1 million from last year's $47.3 million spending plan.  The proposed budget would increase the tax rate to 80-cents per $100 of assessed valuation.  Under the proposed budget, the owner of a home assessed at the township average would see a $150 to $160 increase on their tax bill.  The budget cuts spending by 2 percent and falls within the new 3.5 percent spending cap and within the new 2 percent tax levy cap.

Though the proposed budget was reduced by $1 million from last year, the tax rate increase is due to escalating pension and benefit costs and a drop in the township's total assessed value.  The cost of health benefits rose by about 16 percent this year, while the township's total assessed value decreased by 4.4 percent for 2011 to about $3.7 billion.  

The township's pension costs are about $3.7 million this year, an increase of about $3.6 million over the last six years and an increase of about $2 million over the last two years alone.  

The proposed budget includes 10 layoffs of township employees and an undetermined amount of furlough days.  The actual number of total layoffs and furlough days will be determined over the coming weeks as the council evaluates the budget.   The layoffs would take effect at the end of the business day on April 18.

Over the last five years, South Brunswick is down 56 positions from layoffs and attrition, which reduced the township workforce from 295 people to 239 people.  

The council began budget hearings Tuesday evening meeting with the Public Works Department as they assess further cuts that can be made to bring down the proposed 8-cent tax rate increase.

At Tuesday night's meeting, each council member stressed the introduced budget is just a starting point and the final product will differ greatly from the current spending plan.

Click here to view the introduced 2011 municipal budget.