Public hearing June 25 on $31.7M budget
Manalapan tax rate will rise 3 cents under committee's proposal
BY KATHY BARATTA Staff Writer
Following a bit of verbal sparring, members of the Manalapan Township Committee unanimously voted to introduce a $31.7 million municipal budget for 2008 at their meeting on May 28.

While noting that this year's budget was developed without having to cut employee positions or municipal services, Mayor Michelle Roth said, "In the future we may have to look to part-time (employees) and cutting some services."

Roth said Manalapan's municipal budget is almost $2 million below allowable state-mandated spending limits.

At a previous meeting, Deputy Mayor Susan Cohen suggested that members of the committee not accept municipal medical benefits. Cohen said she does not take any township issued health insurance coverage. She estimated that the $60,000 it costs to provide benefits for the remainder of the committee could be used to help pay for other items in the budget.

The rest of the committee members did not agree with Cohen's suggestion, including Committeeman Anthony Gennaro, whose term will expire Dec. 31 and who is not seeking reelection. Gennaro accepts the township's health-benefits coverage. Gennaro and Cohen are often on the same side on municipal actions.

Before the committee voted to introduce the budget May 28, Cohen upped the ante by asserting that the members of the governing body should also no longer receive an annual stipend of about $7,000.

Roth, whom Cohen has praised, saying she had "awe and respect" for the amount of time Roth devotes to her duties as mayor, said nonetheless that she believes people who run for office to serve the public should do so only for the satisfaction of serving in the capacity of an elected official.

Speaking after the meeting, Cohen said, "I do not feel that being on the Township Committee should be about getting paid or receiving benefits. It should be about wanting to make a difference in your township. I believe that anyone who gets involved in politics at the municipal level should not do so for their own personal benefit.

"By eliminating the monetary value of the position, you will get only those running who truly want what is best for the residents. I realize that my opinion is not a popular one with the members of the committee, as you witnessed" on May 28, she said.

Roth's response to Cohen's earlier request that the committee members relinquish only their municipal health benefits had been to note that the elimination of the health benefits already being offered to the members of the committee amounts to less than one-tenth of 1 cent. Roth noted that her annual stipend was $7,763 and her health benefits were $14,187.

According to Roth, the compensation is warranted relative to the commitment she dedicates to discharging her duties as mayor. She said she puts in about 40 hours a week as mayor, in addition to her regular full-time job.

Roth also explained that 87.9 percent of the municipal budget costs are "fixed and statutory" due to contractual obligations. According to Roth, the township has a 98.3 percent tax collection rate, which she said is an excellent collection rate.

"Considering what Manalapan has to offer its residents, I think we are in pretty good shape in comparison to other like municipalities," she said.

CommitteemanAndrew Lucas said that as a member of the finance committee, he and Committeeman Richard Klauber had "worked steadfastly throughout the years to whittle away waste."

On another budgetmatter, Lucas asked if the position of purchasing agent, which costs the township about $65,000, could be absorbed by the office of the administrator.

Township Administrator Tara Lovrich said the position of purchasing agent requires a certification that no one in the administration department has.

If the $31.7 million budget is adopted following a June 25 public hearing, the owner of an average single-family home in Manalapan will pay $150 more in municipal taxes in 2008. The average home is assessed at $431,133, according to information provided by Manalapan officials.

The Township Committee will collect a local tax levy of $17,981,176 from property owners to support the $31.7million budget. The next largest source of revenue after the local tax levy is state aid, at $4,988,361.

Under Gov. Jon Corzine's 2008 state budget, Manalapan is receiving $376,823 less in state aid for 2008, compared to 2007. That reduction in state aid accounts for $26 of the $150 increase in municipal taxes for the owner of the average home, municipal officials said.

In 2008, the municipal tax rate is projected to rise from 25 cents per $100 of assessed valuation to 28.4 cents per $100 of assessed valuation.

That means the owner of a home assessed at $431,133 will pay $1,225 in municipal taxes in 2008, an increase of $147 from the $1,077 paid in 2007. The owner of a home assessed at $600,000 will pay about $1,704 in municipal taxes in 2008, up $204 from $1,500 in 2007.

Municipal taxes are one part of the overall property tax bill which also includes Manalapan-Englishtown Regional School District taxes, Freehold Regional High School District taxes, Monmouth County taxes and several other assessments.

Committee members said municipal taxes pay for the following items:

• Accredited police department.

• Public works department.

• Board of Health and animal control services.

• Emergency services.

• Recreational, cultural and senior citizen's events and programs.

• Garbage collection and recycling program.

• Open space acquisition and shade tree program.

• Community alliance to prevent alcohol abuse and drug abuse.

Municipal property taxes also pay for all operations in town hall, including the administration, planning and zoning offices, Township Committee, and municipal professionals such as attorneys, engineers and planners.

Salaries and wages contained in the 2008 budget include $7.4million for the police department; $1.8 million for the Department of Public Works and parks maintenance; and $1.2 million for government services.

Operating expenses contained in the budget include $4.8 million for utilities, sanitation and landfill; $3.7 million for insurance; $2.7 million as the reserve for uncollected taxes; $2.6 million for state mandates; $2.6million for debt service; and $300,000 for capital improvements.

The 2008 budget will use $3.7 million from surplus as revenue.

Manalapan's 2007 municipal budget totaled $29.7 million and was supported through the collection of $15.2 million in local property taxes.

Manalapan's 2006 municipal budget totaled $28.8 million and was supported through the collection of $11.9 million in local property taxes.

Officials said nine positions have been eliminated through attrition in the last two years, and said cost-saving shared services agreements have been initiated with local school boards, neighboring communities and Monmouth County.

Apublic hearing on the budget is scheduled for the committee's June 25 meeting.