Pension payments drive local spending increase
BY CLARE MARIE CELANO Staff Writer

FREEHOLD - The Borough Council has introduced a $14 million budget to fund the operation of the municipality in 2008. A public hearing and vote on the adoption of the spending plan has been scheduled for July 2 at 5:30 p.m. in Borough Hall.

Officials expect to raise $7.7 million through a local property tax levy to support the budget, according to Borough Administrator Joseph Bellina.

According to figures provided by Bellina, Freehold Borough's municipal tax rate will rise 5.9 cents, from 65.9 cents per $100 of assessed valuation to 71.8 cents per $100 of assessed valuation.

If the budget is adopted by the council as proposed, the owner of a home that is assessed at the borough average of $259,000 will pay $1,859 in municipal taxes in 2008, up from $1,706 in 2007.

Municipal taxes are one part of a property owner's tax bill, which also includes Freehold Borough School District taxes, Freehold Regional High School District taxes and Monmouth County taxes, among other assessments.

The 2007 municipal budget totaled $13.3 million and the local property tax levy was $7.1 million.

Unlike a school budget, residents do not vote on their town's municipal spending plan.

According to Bellina, significant increases can be seen this year in what the borough is obligated to pay toward police pensions and public employee pensions.

In a budget message, borough officials said the police pension line item is increasing by an "astronomical" $243,000 in 2008 (from $378,983 in 2007 to $621,776 in 2008), and the public employee pension line item is increasing by $46,000 in 2008 (from $51,706 in 2007 to $97,709 in 2008).

The police pension costs will continue to rise in the foreseeable future, according to the budget message.

Combined with a $180,000 cut in state aid, Bellina said these three items (police pensions, public employee pensions and the state aid cut) account for 4.4 cents of the total 5.9-cent increase.

The borough will receive a total of $1.6 million in state aid this year.

Bellina said gasoline costs will be $30,000 higher in 2008 than in 2007, and said other utility costs are also increasing. He said health benefits are up $110,000 from 2007.

Public safety expenses account for a significant portion of the budget, with police salaries and wages amounting to $3.5 million and other police expenses totaling $162,600. Police dispatch salaries and wages amount to $304,000 and other police dispatch expenses total $2,400.

Also under public safety are fire salaries and wages of $111,385 and other fire expenses of $102,500.

The borough will pay a total of $132,000 into the Length of Service Awards Program that is provided to qualified members of the Freehold Fire Department and the Freehold First Aid and Emergency Squad.

The budget provides for road improvements to Center Street, including handicap ramps at intersections, and drainage and sewer work where necessary. The budget also includes engineering costs for improvements to Conover and Ward streets that are scheduled to take place in 2009.

The Center Street road improvements will be funded in part by a $197,000 Community Development Block Grant. The borough will pay the remaining $303,000 of the $500,000 cost of the road improvement project.

"There are no employee layoffs this year, but things are so tight that we cannot replace two people who retired in the streets and roads department. We are hoping that we don't have to face the dilemma of laying off people. As each person retires, we will evaluate the need to replace that person," Bellina said.