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2008 BUDGET MESSAGE
MAYOR DAVID FRIED
ROBBINSVILLE TOWNSHIP
The 2008 spending plan reflect the continued commitment of the Fried Administration to striking a balance between taking as little of the taxpayer’s money as possible with maintaining responsible year-to-year management practices, including the maintenance of adequate levels of surplus and avoiding the over reliance on non-recurring revenue sources, particularly those tax revenues that have been associated with heavy periods of residential growth.
The spending plan of $16.99 million seeks a 2-cent tax-rate increase, from 34 to 36 cents per $100 of assessed value. The increase on a home assessed at the township average of $375,000 will be $75. The administration began the budget preparation process with a commitment to a flat tax rate, following last year’s reduction in the tax rate that produced the equivalent of a $60 reduction for a house assessed at the former average assessed value (pre-revaluation). However, the loss of $144,000 of state aid, or 7.9 percent of the 2007 total municipal aid, coupled with a $326,000 increase in pension costs, made the tax rate increase necessary.
Steps taken by the administration to cut costs included instruction to department heads to seek a 2 percent reduction in operating expenses as well as a directive that all white-collar personnel must pay 1 percent of salary toward their health care premiums, unless they receive a stipend in lieu of health coverage. Raises for white-collar staff were limited to 3 percent for personnel earning $50,000 or less, and 2 percent for those earning above $50,000.
A prior-year initiative to bring a portion of Township garbage collection in-house is bearing fruit. The budget anticipates use of $2.3 million in surplus. Use of a higher amount would imperil the Township’s financial position and break commitments to the New Jersey Local Finance Board and Moody’s to wean Robbinsville off its long-term dependence on added-and-omitted taxes associated with residential construction.
PERSONNEL. As the budget preparations progressed, the administration opted to lapse vacancies in the areas of police and public works, though it advises Township Council that it may seek to fill new vacancies should they occur through the balance of 2008. Public works has been historically understaffed despite increased growth in the township, and New Jersey Uniform Crime Reports indicate that a town of Robbinsville’s population should have 35 sworn officers. At present, the Township has 27.
Among non-represented staff (administrative personnel and construction), the township has 35 full-time, 10 part-time and 3 hourly employees (two are recording secretaries for township boards). The Township surveyed similarly sized suburban municipalities in our area and found that all had larger staffs. The closest was Hopewell Township, with 40 full-time and 10 part-time employees.
The only area where the Township has more staff per capita than other towns in Mercer County is the Division of Fire. The former Fire District opted to absorb EMS responsibilities in 2000 by hiring all full-time staff, rather than handle the increased duties with a balance of full-time and part-time personnel. Efforts to reach an agreement with the bargaining unit to reabsorb a superior officer following a court ruling in a manner that would achieve long-term cost containment have proven unsuccessful to date. The Township warned the bargaining unit in September 2007 that layoffs or demotions were a possibility. Due to rising costs of carrying full-time employees, the Township has issued layoff notices to two firefighters.
COST-DRIVERS. The budget contains an 83 percent increase in pension costs, as the state requires municipalities to aggressively regain ground from a policy of the late 1990s that permitted skipped pension payments. Health care costs are another area driving up costs. In addition to an 11-percent increase in medical premium costs, Robbinsville experienced an unusually high number of status changes in 2008, causing overall costs to rise 37 percent to $1.3 million. The administration fully intends to pursue cost-sharing initiative with its bargaining units, similar to those imposed on the white-collar staff, as contracts come up for renewal. Finally, Robbinsville experienced a 61 percent increase in street lighting costs as a long-scheduled takeover of streets in Town Center occurs in 2008.
RATABLES. Economic growth continues to have a positive effect on the municipal, county and school budgets. The $50 million increase in ratable property in 2007 generated an additional $1 million in tax revenue. An additional $361 million in commercial projects are in the pipeline.
Best of all, Robbinsville is slowly edging away from its last-place status in the ratio of commercial-to-residential property, a critical yardstick for improving our bond rating. In 2005, when Mayor Fried, took office the percentage of commercial property was 16 percent; in 2008, it will be 24 percent. The percentage of ratable scheduled to come on line in 2008 is 77 percent commercial (in part due to the decline in the housing market).
The budget allocates funds for additional zoning ordinance changes to continue implementation of the 2006 Master Plan Update, which will further promote commercial growth in the Township.
While the Township anticipates aggressive planning for the disposal of surplus property throughout 2008, the budget takes a cautious approach and does not project revenues from these sales. Should those sales occur in 2008, any revenues would flow to surplus and be available in 2009.
Click Here for to See the 2008 Budget Presentation to the Council
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