TAX NEWS - JUNE 2010

New Jersey Tax: Bedminster to outline municipal budget that proposes cuts to minimize tax increase

A detailed presentation on this year's proposed $10.3-million municipal budget, which would add $10 onto the tax bill for an average township home, is scheduled Monday night's Township Committee meeting.

The suggested budget eliminates funding for one police officer's salary and for the township's Fall Fest, held each September at River Road Park, said Township Administrator Judy Sullivan.

The Township Committee voted on May 17 to initially approve the budget, which Sullivan said is about $40,000 lower than the 2009 municipal budget. However, the amount of the total budget to be funded by local taxpayers is expected to increase by $108,000 because of lost state aid and higher costs in some areas, she said.

"The goal was to minimize the amount raised by taxes," Mayor Robert Holtaway said Thursday.

Township officials were forced to make cuts in other accounts to partially offset this year's $165,000 reduction in state aid, and increases such as a $73,000 hike in the cost of employee benefits, Sullivan said.

Sullivan said a contracted 3.5-percent increase for the 14 township police officers covered by the police union added $65,000 to this year's municipal budget.

One police officer was laid off from the department on April 30, officials said. At that time, Holtaway said the committee was working to reduce expenses in all township departments by 7.5 percent.

Township officials also cut about $25,000 to $30,000 for staffing and arranging the annual Fall Fest, Sullivan said. Some of that expense was offset by donations, she said.

Holtaway said the Fall Fest is canceled for this year, even if enough money is donated to cover the entire cost. He said the township has notified long-time vendors the event will not be held.

The committee also has tentatively reduced this year's municipal open space tax from 2 percent to 1.5 percent to save $117,000, Sullivan said.

Sullivan said she will present budget and tax figures at Monday's meeting, scheduled to begin at 7 p.m. A public hearing on the proposed budget is scheduled June 21. Final adoption could be delayed until the state completes a review of the township's budget, periodically scheduled for every municipality in the state, she said.