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ABERDEEN APPROVES BUDGET THAT RAISES TAX RATE 1.86 CENTS;
AVERAGE HOMEOWNER WILL SEE ANNUAL INCREASE OF $52

            ABERDEEN (9/16/09)—The Aberdeen Township Council has approved a municipal budget of $14.75 million for 2009 that would raise annual taxes for the average home by $52.

The 2009 budget is $577,000, or 3.8%, below the $15.33 million allocated in 2008. However, due to anticipated reductions in revenue, the budget is supported by a tax levy of $8.21 million, up from $7.82 million in 2008.

For property owners, this will result in a tax rate increase of 1.86 cents, from 37.4 cents per $100 of assessed property value in 2008 to 39.3 cents in 2009.  Thus, the average home in Aberdeen assessed at $280,000 will see their municipal taxes increase $52 per year to $1,100.

Township officials anticipated declines in several sources of revenue this year, including the loss of state aid, sharply decreased interest on investments, and an increase in uncollectible taxes. Aberdeen applied for, but was not granted, Extraordinary Aid from the state. Beyond the decreases in those revenue sources, the Township was confronted with cost-of-living increases mandated under union contracts as well as rising health insurance costs.

“In an effort to limit the size of the tax increase, the Mayor, Council and Administration worked diligently with the Matawan-Aberdeen Public Library and with the borough of Matawan to obtain a reimbursement of surplus funds, ultimately delivering about $184,000 in funds to the municipality,” said Township Manager Joseph Criscuolo. “Additionally, we worked to attain savings in virtually every department through staff reductions via attrition and other cost-cutting measures.”

For example, changes implemented in the area of Information Technology resulted in a 50% reduction in IT expenses, Criscuolo explained. Among other examples, savings will be realized by not filling a position in the Clerk’s Office and by shifting a Municipal Court employee from full-time to part-time status.

“Notwithstanding these efforts to control costs, this budget does allow us at a minimum to maintain the same level of services to our residents,” Mayor David Sobel said. “We maintained staffing levels in Police/Public Safety, which is the largest component in the municipal budget, kept our roads and parks improvement programs going, and even increased services by opening the Public Works Yard every Saturday and by enhancing security at the Municipal Court. In addition, we continued to invest in our future by working on major projects at the train station and Anchor Glass that, when real estate market conditions allow, will ultimately significantly increase our ratables and reduce our tax burden.” 

Elaborating on the rising costs of healthcare, he noted that in last year’s fourth quarter, Aberdeen was forced to pass emergency appropriations totaling $220,000 for health insurance. To help get employee healthcare insurance expenses under control, the Township joined the Central Jersey Health Insurance Fund. Other towns in the fund are: Brielle, Hazlet, Lakewood, Manchester, Plumsted, Shrewsbury, Ship Bottom, Red Bank, Eatontown, Atlantic Highlands, Eatontown Sewer Authority, Englishtown, Keansburg Board of Education, Manasquan, Allentown, Surf City, Brick Township, Interlaken, Spring Lake, and Barnegat.  Savings from this strategic move should be realized beginning in the first quarter of 2010.

            Following the adoption of this year’s municipal budget, Mayor Sobel expressed his gratitude to management staff, all municipal workers and fellow council members for “delivering such an austere and responsible budget.”

          He added: “Although this year’s budget process was especially challenging in light of the difficult economy, I remain optimistic about a brighter future as we anticipate the startup of certain projects.”