After introducing Guttenberg’s 2010 fiscal year budget last month, a public hearing on it was held at the Oct. 26 council meeting.
No members of the public spoke on the budget, which will span July 1, 2009 to June 20, 2010.
This year’s budget will likely be $15.1 million, up from last year’s $13.7 million, but the final numbers have not yet been pinned down due to the town’s application for state aid.
In this year’s budget, residents will contribute more taxes at around $10.1 million, a 7.2 percent increase from last year’s tax levy. Last year’s $9.8 million increase was a 7 percent rise from the year before.
“The good news is the town is doing okay fiscally.” – Vince Buono
________
Residents pay taxes that go to three entities – the town, the schools, and the county. However, the town’s budget only affects the town portion.
Mayor Gerald Drasheff said that part of the reason for the tax rate going up is that the goal of the administration was to not make any drastic cuts. He said that the Guttenberg Police Department operated on “bare bones,” while many people who work in town are paid lower salaries when compared to surrounding municipalities.
“I’m not ruling out budget cuts, but we are doing everything we can to avoid them,” said Drasheff. “That’s why the levy went up as much as it did.”
Consolidating the budget
Drasheff said that certain positions were consolidated to save money.
For example, Pubic Safety Director Michael Caliguiro recently also became the town administrator and may also fill the role of the pubic works director. Drasheff said that they still weren’t sure if it would work, but if it does, the town will save funds by not having to pay three separate salaries.
Chief Financial Officer Vince Buono said that union employee raises and a 15 percent raise in health insurance also caused the budget the increase.
The town is also budgeting to earn less in license fees and building permits this year.
Buono said the good news is that Guttenberg will receive more in state aid this year, which made the budget grow as well. The town anticipates receiving $370,659from an Energy Receipt Tax, while last year it received $303,471.
The Regional Efficiency Aid Program credit, a state tax rebate given by the state for homeowners in North Hudson as a reward due to the regionalization of their Fire Department, has decreased, but at a negligible amount, said Drasheff. Last year REAP was lowered by 25 percent.
Drasheff said that currently Guttenberg is operating on a temporary budget. While the town usually adopts a budget by November or December, last year state aid applications were not heard until spring, not allowing Guttenberg to pass its 2009 fiscal budget until May 2009.
Drasheff is hopeful that Guttenberg has a better chance this year to receive state aid than in years past.
After hearing back from the state, the council can make final changes to the budget before adopting it.
Buono said that this year’s budget was one of the most challenging he’s had to work on.
“The good news is the town is doing okay fiscally,” said Buono. “The bad news is the economy is the economy and we’re not immune to it.”
Tricia Tirella may be reached at TriciaT@hudsonreporter.com.