Manalapan introduces municipal budget
Overall tax rate is projected to hold steady at $1.73
BY MARK ROSMAN Staff Writer
Manalapan residents will see no change in their overall property tax bill in 2009, municipal officials announced at the May 13 meeting of the Manalapan Township Committee.

Although the 2009 municipal budget calls for an increase in the municipal tax rate of 1.1 cents per $100 of assessed valuation, officials said that when the tax rates of all the taxing entities that make up a Manalapan property owner's tax bill are taken into account, the township's overall tax rate for 2009 is expected to remain at $1.734 per $100 of assessed valuation.

With a tax rate of $1.734 in place, the owner of a home that is assessed at the township average of $428,480 will continue to pay a total of about $7,428 in property taxes. The owner of a home that is assessed at $600,000 will continue to pay a total of about $10,404 in property taxes.

In addition to municipal taxes, a Manalapan resident's property tax bill also includes taxes paid to the Manalapan- Englishtown Regional School District, the Freehold Regional High School District, Monmouth County, a local fire district and several other assessments.

Mayor Richard Klauber said the bottom line is that Manalapan's overall tax rate will hold steady in 2009.

The committee introduced a municipal budget that totals $31,982,713 and will rely on the collection of $18.8 million in local taxes. Other revenues to support the budget will come from state aid ($4.9 million) and from Manalapan's surplus (savings) account ($4.2 million).

Klauber said the appropriate time to use the surplus funds is during difficult economic times and he said that is what officials are doing this year with the $4.2 million appropriation from the township's savings.

Public safety, which includes the police department, continues to be the biggest expense in the budget. Officials said public safety amounts to 25 percent of all expenses.

A public hearing on the 2009 budget has been scheduled for the committee's June 10 meeting. Residents will be able to ask questions about the spending plan before the budget is adopted by the governing body. Officials said a copy of the budget may be reviewed in the township clerk's office.

"Every governmental entity in the state of New Jersey has been faced with steep revenue declines and annual cost of living increases. While Manalapan, like other municipalities, county governments and the state, has also experienced these events, we have been able to protect our residents because of our past conservative budgeting approach. The township will be able to weather this economic storm without layoffs, furloughs or cuts in service, all with a minimal operating increase," Klauber said.

Township officials also announced that Manalapan is the first municipality in New Jersey to request and gain permission from the state Department of Community Affairs to use its construction department employees as in-house contractors on various projects.

These projects include but are not limited to the construction of the Americans with Disabilities Act-compliant ramp to the new recreation offices on Route 522, refurbishing the Kuschick pavilion in the Manalapan Recreation Center, construction management of the Route 33 community center renovation, and routine plumbing and electrical maintenance.

In addition, the construction department employees — who officials said have skills in the electrical, plumbing and building trades — will work on the refurbishing/expansion of the Manalapan Police Department.

The police department will be expanding into the space on the lower level of town hall that has been vacated by the recreation office. All this is being done in lieu of hiring outside contractors, according to officials, who said the expected savings from this decision are projected to be in excess of $350,000.

Since the employees who will be completing the electrical, plumbing and building work are Manalapan inspectors who typically inspect other people's work, their work will be examined by municipal inspectors from other towns, officials said in response to a question from a resident.

Within the budget, the Township Committee chose not to defer any portion of the public employee pension fund payments it is scheduled to make this year. Manalapan will pay $1.7 million into the state pension fund to cover municipal employees.

Officials said the pension deferral could have been as high as $821,468, but would have cost up to 8.5 percent interest, plus the repayment of the deferred money, to be paid off over the next 15 years.

Klauber said that by not using this option provided by the state, the Township Committee further protected the township's future budgets.

The mayor said 23 municipal employee positions have been eliminated by attrition over the past four years. During the past two years, he said, revenues are down $3.32 million. Much of that lost revenue has resulted from a slowdown in construction and the payment of significantly less money in permits.

Nevertheless, Klauber said, "we are in terrific financial shape. Even with a 1-cent increase in the municipal tax rate, we are trying to leave ourselves in a sound financial position for next year. This budget is taking us out for the next two or three years."

In 2009 the municipal tax rate will increase by 1.1 cents, from 28.4 cents to 29.5 cents per $100 of assessed valuation.

That means the owner of a home assessed at the township average of $428,480 will pay about $1,264 in municipal taxes in 2009. The owner of a home assessed at $600,000 will pay about $1,770 in municipal taxes in 2009.

Municipal property taxes pay for all operations in town hall, including the police department, township administration, the planning and zoning offices, parks and recreation, public works and municipal professionals such as attorneys, engineers and planners.

Manalapan's 2008 municipal budget totaled $31.7 million and was supported through the collection of $18 million in local property taxes.

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.