Manasquan's Proposed Budget Shows Slight Increase to Taxpayers

It came down to nickels and dimes as the Manasquan mayor and council attempted to stick to their promise of limiting tax increases to a "hard 2 percent" during a special budget meeting held Saturday, March 12.

The council is expected to introduce the budget during its March 21 meeting. A public hearing and formal adoption is likely to take place at their April 4 meeting.

No residents attended the 9 a.m. Saturday meeting, which found the governing body along with Borough Administrator Joseph DeIorio and Borough Auditor Allen Shechter singling out line items to be cut.

When the dust settled, the two-hour meeting ended with a proposed 2011 municipal tax rate of 0.347, a 0.007 increase from 2010. For the average homeowner, with a property assessed at the borough average of $501,800, this means a municipal property tax bill of $1,741.26, an increase of $35.13 from the previous year.

The municipal tax rate is only one factor in a property tax bill, which also includes levies for school, county and fire district.

According to DeIorio, the 2011 tax levy comes in a full $123,562 under the increase allowable by Gov. Chris Christie's 2 percent property tax levy cap.

Every department in the borough will share the burden as reductions in departmental budgets were made across the board. Still, the borough will plan to spend $8,057,857.97 in 2011, a 1.108 percent increase from last year's total spending of $7,969,559.19.

The borough's surplus balance will also take a hit for the second year in a row with a decrease of $146,456.90.

While salaries and wages in all major departments were down by $54,927.52 due to retirements, health insurance costs rose $37,152 from last year and the borough's pension obligation to both the Police and Fireman's Retirement System and the Public Employee Retirement System rose by $101,771.21.

"This is a situation that is not unique to Manasquan," Councilman Owen McCarthy said of rising health insurance and pension costs, noting statewide issues being dealt with in Trenton. "Until the situation at its core is changed, we have a problem."

As the governing body reviewed line item appropriations to be slashed, Councilwoman Patricia Connolly took aim at borough employees.

"We really should be looking at the employee side, as well," the Republican councilwoman said.

Connolly first proposed requiring all borough employees to be furloughed for a day.

"I think that would be a good message to the taxpayers," she said.

DeIorio pointed out that the borough cannot legally furlough police officers and noted that furloughs would likely affect the level of services desired by residents.

"I'm against all furloughs," Mayor George Dempsey said of the idea. His sentiments were echoed by other members of the council, and discussion of the idea was dashed. 

Connolly also suggested the council take a look at health benefits collected by borough employees as a possible means of cost-saving.

"We really have a Cadillac plan," she said. 

Connolly felt Manasquan should "set the example" on employee costs, while other members of the council believe that the borough had already begun to do so, noting the loss of one full-time police and two full-time public works positions in the past several years.

"We have taken that initiative," Councilman Joe Lucas said.

While much of the discussion centered around how to make cuts, Councilman Don Grasso asked members of the governing body and borough professionals to consider ways to increase revenues.

"I think we really have to start saying 'Where are the revenues?' '' Grasso said. "We're going to slash ourselves into nothing."

Grasso pointed specifically to building permit costs, which he explained were low compared to neighboring towns.

"If we don't make the money, then we're going to have to take it out of the people's pockets," he said.

While the council members came to agreements on numerous administrative and departmental costs to be cut, funding to the Manasquan Public Library became a sticking point. 

"Through attrition, we've cut every single department over the years," Councilman Jeff Lee said, noting that the library was the only exception.

The Manasquan Public Library last year received $134,537 from the borough, a figure which constituted 90 percent of its operating budget with the rest coming from the county and other sources.

Connolly categorically opposed any funding reductions for the library, noting that they had already pledged a zero percent increase for 2011.

Connolly also pointed to a non-binding referendum held seven years ago, in which Manasquan residents voted in favor of municipal funding of the library.

In the end, the majority of the members of the governing body agreed to cut the library's funding for 2011 by $1,000 with only Connolly opposing the cut.

"Thank you for going against the library," Connolly said after the decision.

The borough council is expected to introduce the budget during its March 21 meeting.