FOR IMMEDIATE RELEASE:
January 24, 2008
Freeholders introduce 2008 county budget
Tax levy is well below state cap on spending, rate of infl ation
FREEHOLD – The Monmouth County Board of Chosen Freeholders introduced a $489.2 million budget tonight that reduces the county tax rate by a penny and holds the increase in the 2008 tax levy to well below the state cap on spending and the rate of infl ation.
Despite an overall increase in spending, this is the third year in a row those increases have been kept below the rate of infl ation, a claim no other county in New Jersey can make. The proposed increase in the tax levy is $8,086,000, or 2.8 percent. This year, most county departments were asked to reduce their budget requests
by 5 percent. Many have complied with that request, and several even reduced their overall budgets. At meetings leading up to today’s budget introduction, a number of the larger departments made budget presentations before the Board of Chosen Freeholders.
“I am pleased to be able to introduce a 2008 budget that holds the line on taxes at a time when homeowners are grappling with rising household expenses such as gasoline and groceries,” Freeholder Director Lillian G. Burry said. “Conservative budgeting has allowed for the continuation of county services as we continue to look for ways to reduce costs.”
Based on the average market value of a Monmouth County home today, which is $531,000, the impact of the 2.8 increase in the tax levy equals about 9 cents per day.
Once again, the Board will be taking the county budget “on the road” next month with a PowerPoint explanation of the proposed spending plan in an effort to receive input from county residents. Public budget presentations have been scheduled at the following two locations:
• 7 p.m. Feb. 7 in the Student Life Center at Brookdale Community College, Lincroft
• 7 p.m. Feb. 21 at the Monmouth County Library Headquarters, Manalapan.
In addition, a public hearing will be held prior to its scheduled adoption on Feb. 28 in the freeholder meeting room at the Hall of Records.
“As elected officials and homeowners, we are very aware that taxes from all levels of government have a very real impact on people’s lives,” said Freeholder Deputy Director Robert D. Clifton, who oversees the Finance Department. “I would like to thank the departments for their conservative budgeting this year, and commend the Finance Department for its work in crafting this budget. I look forward to hearing from residents during our budget presentations.”
The proposed spending plan is up by $17,346,000, which is largely due to steep increases in utility costs and pension obligations. The amount to be raised by taxation $294,590,000, up by $8,086,000, which represents the 2.8 percent increase. For comparison purposes, the state-imposed spending cap is 4 percent, and the rate of inflation for the Northeast region is 3.8 percent.
Clifton also noted that a number of government services have been consolidated for a savings. “We continue to look for opportunities to provide those savings,” he added.
Freeholder William C. Barham said the jump in pension contributions is a direct result of pension reductions granted by the state several years ago, compounded more recently by the insistence that counties pay back their contributions over a five-year period instead of all at once.
“The state is charging every county 8.25 percent interest on the pension money owed,” Barham said. “When the pension payments were reinstated several years ago, we had asked to be allowed to bond for that amount at a much lower rate and pay it off at once but the state refused to allow it. So instead of a $2.5 million in crease in the tax levy we have an $8 million increase.”
Under the proposed budget, the county tax rate would be 23.1 cents for each $100 of assessed valuation, Finance Director Mark E. Acker said. Currently, the rate is 24.06 cents. One reason for the lower rate is a 6.7 percent increase in the county’s ratable base, which now totals $ 127.3 billion. The county tax rate would differ in each municipality because it is adjusted according to equalized values.
“I’m pleased that many of the recommendations of the Budget Review Committee are being taken into consideration as we continue to look for ways to reduce spending without impacting services,” said Freeholder Barbara J. McMorrow, who made formulation of the Budget Review Committee a hallmark of her first year in office.
Freeholder McMorrow also said she looks forward to hearing from residents at the public budget sessions.
“The budget presentations we made at those same locations last year were very well attended and, I thought, very helpful to us because we did make additional cuts afterward,” she said. “I am eager to hear what residents think of this year’s proposal, and I look forward to seeing if any suggestions they may have can be implemented.”
“We are making significant progress in terms of budget reductions, but we have a lot of work to do,” Freeholder John D’Amico Jr. said.
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