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Average homeowner to see $190 increase
The Verona Township Council adopted its $18.77 million municipal budget for 2008 Monday.
The average taxpayer, with a home assessed at $100,000, would pay $190 more in taxes, Mayor Ken McKenna said.
Council members said while they were not happy that the tax levy grew 19 points, to $12.21 million, they could not cut the budget any further because of an unsteady economy.
Earlier this year, the tax levy was $12.37 million – a 23-point growth that would have meant a $220 increase for the average taxpayer.
Last week, Township Manager Joseph Martin recommended reducing it four tax points by using surplus, and then replenishing it through cuts to snow removal and bond sale proceeds, among other areas.
Martin said the council waited until August to adopt its budget in order to see if it received any state extraordinary aid, which it did not.
Verona received $170,000 less in state aid this year, according to the manager. He added that employee pension costs increased 15 percent, or $250,000, and that garbage collection costs rose $140,000.
Debt service increased $260,000 and the township’s contracts with the Office and Professional Employees International Union Local 153, and Verona Policemen’s Benevolent Association Local 72, rose 4 percent.
“In the good news department, we have just completed our second year in the New Jersey Health Benefits system,” Martin said. “That is up 5 percent. Were we to stay self-insured, the increase would have been 15 percent.”
McKenna added that the township saved “$100,000 to $150,000, or two to three tax points” by switching plans.
The manager reported that Verona would be able to weather 11 retirements across 2007-08 (eight last year and three this year) because of a previously established trust account. “It will not be a major hit,” he said.
He said the total budget grew 6 percent, or 5 percent without the debt service.
“We are in a strong position for 2009, which is because of our conservative management approach and speaks to our AAI rating from Moody’s,” Martin said.
McKenna said the taxpayer would feel effects akin to a 52-point increase after school and county taxes.
“This is a difficult year. We know you’re being hit on the home front. We all have to pay the increase, but we do our best to keep it in control,” Deputy Mayor Jay Sniatkowski said, thanking Martin and Chief Financial Officer Dorothy Trimmer for their help.
“I’d love to cut it further, but it’s not prudent,” Councilwoman Teena Schwartz said. “We don’t know where the economy is going to go, and with the increases in fuel and energy…”
Councilman Santi Condorelli said the 2008 budget “provides steady growth without the old budget” year-to-year fluctuations.
At the same meeting, the council introduced its employee and police salaries.
The highest paid township positions include: township manager, $165,906; township engineer, $141,380; library director, 115,090; and chief financial officer, $113,768.
The highest paid police positions include: police chief, $143,969; captain, $121,510; four lieutenants, $108,105; and three sergeants, $98,277.
A public hearing on the salaries is scheduled for the Tuesday, Sept. 2, meeting.
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