South Brunswick Council Eyes Another Tough Budget Year in 2012

After a tumultuous 2011 filled with economic difficulties and natural disasters, the South Brunswick Township Council laid out their goals and the challenges ahead for 2012 at Tuesday night's meeting.

"Our overriding concern is the health, safety and welfare of every resident in South Brunswick," said Councilman Joseph Camarota. "The most paramount issue this year, as it has been for the last several years, is the budget."

Last year, the Township Council adopted a $46.8 million municipal budget that maintained the tax rate at 72-cents per $100 of assessed valuation. However, an increase in taxes was reflected through a state law that requires minimum library funding to be broken out of the municipal tax rate and listed separately on the property tax bill. The change reduced the municipal tax levy and rate, and created a new line item on the tax bill for library purposes. 

The library receives tax dollars in the minimum amount required by state statute, known as 1/3 mill minimum library funding. This amounts to 7.69-cents per $100 of assessed valuation.  Mayor Frank Gambatese said the tax rate increase was based on the drop in South Brunswick's ratables, as the township's total assessed value dropped by 4.4 percent for 2011 to about $3.7 billion. 

The budget included seven layoffs and another 11 positions lost to attrition that weren’t filled.  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.  

"We are doing more with less, and sometimes things take a day or two longer than before, but we reduced the budget by $4 million over the last three years," said Deputy Mayor Chris Killmurray.

However, the council anticipates another turbulent process formulating the budget for 2012.

"We know this year's budget is going to be very difficult," Camarota said. "There's going to have to be a reduction in spending. We have to be creative and think outside the box."

Camarota said $8 million in the township's affordable housing trust fund needs to be spent by June otherwise the state could take that money. He also said the township needs to move forward on an expansion to the South Brunswick Senior Center, as more baby boomers enter retirement.

, including the ongoing intersection improvements, the installation of crosswalks, and lowering the speed limit were also named as goals for 2012.

Camarota said the township needs to continue the successes of the Industry and Commerce Commission to attract new businesses to South Brunswick.

"We have to treat businesses like they're our clients, because that's what they are," he said. 

Councilman John O'Sullivan said the township's rating as the was one of the high spots of the year, as well as the additions of two major new businesses.

"In 2011 we also saw the arrival of two large new businesses in our township, Coca-Cola and Hankook (Tires) both opened distribution facilities," he said. "The and employs over 600 people.  Both of these businesses will bring new revenue to South Brunswick. 

"In 2012 we hope to achieve other great things for South Brunswick and its residents, but in order to do that there are challenges that need to be overcome."

O'Sullivan also said the budget is the most difficult hurdle facing South Brunswick in the year ahead.

"I know the professional staff is working on it already, but it will take input from all of us to develop a budget which provides a high level of service without a significant tax increase," he added. "Hopefully we will receive more state aid this year to assist with our income."

O'Sullivan said he would like to see the Exit 8A warehouse area made into a foreign trade zone, where companies could save on import duties.  He added that foreign trade zones are known to attract businesses, which could create and retain jobs, while encouraging capital investment, according to O’Sullivan.   

O'Sullivan said he would also like the council to establish a teen action committee, where the "special skills and talents of our young people can be used to help other residents." 

As the township ratable base has declined over the last few years, Mayor Gambatese said the township must continue to search for ways to save money in the upcoming year. He pointed to the decision to switch the township's joint insurance fund in 2011, which saved $260,000, and the refinancing of accumulated debt, which saved just over $150,000.

On the township's  to purchase the , Gambatese said the park was revenue neutral in 2011 after  He said the park is expected to operate at a "significant profit" in 2012.

Gambatese thanked the township's employees for their work in 2011, and praised public works, which despite losing 10 positions was able to handle a hurricane and a combined 45 inches of snow last year.

"We have reduced the budget from $52 million to $48 million since 2009 and that's a tremendous reduction, while maintaining the same level of service," he said. "That's not an easy thing to do."