Budget will take bite out of taxpayers
Jackson spending plan calls for $392 increase on $200,000 assessment
BY DAVE BENJAMIN
Staff Writer

Budget predictions became a reality on Sept. 19 as the Jackson Township Council approved a 2006 budget that will increase the municipal tax rate by 19.6 cents of assessed valuation.

The $37.9 million spending plan as adopted carries an increase in the municipal tax rate of 19.6 cents, from 59.9 to 79.5 cents per $100 of assessed valuation. The proposed budget is an increase of $5.3 million over the 2005 budget that totaled $32.6 million.

In order to help pay for everything Jackson needs to operate this year, officials will raise $22.4 million in local taxes, an increase of $6.5 million from the $15.9 million that was raised in local taxes a year ago.

Property owners will feel the bite of the budget in their municipal taxes this year. The owner of a home assessed at $200,000 will see his municipal tax bill rise from $1,198 to $1,590 (up $392). The owner of a home assessed at $400,000 will see his municipal tax bill rise from $2,396 to $3,180 (up $784).

Municipal taxes are one portion of the overall property tax bill, which also includes school and Ocean County taxes. Jackson school taxes will also be increasing this year.

Council members voted 5-0 to adopt the budget after listening to comments from residents during a public hearing.

Municipal Administrator William A. Santos presented the budget figures and explained how the money to support the spending plan would be raised.

Members of the Township Council, which came into existence on July 1 and replaced the previous Township Committee, have said former government officials used "one-shot revenues" in last year's budget.

The council members said those revenues are no longer available, hence the need to collect more property taxes from residents in the face of rising expenses.

"On a positive note, the ratable base continues to grow," Santos said. "There are more homes and businesses in town. That will generate additional taxes."

Mayor Mark Seda said some posi-tions have been eliminated, including an aide to mayor ($62,809), a full-time confidential secretary for the administrator ($40,000) and an economic development consultant ($60,000).

Monthly audits of medical benefit invoices were and will continue to be made in addition to marketing employee benefits programs and updating employee records on a monthly basis.

The "to do" list also includes monitoring overtime expenses, expanding cellular coverage and establishing a policy to require mandatory alternate bids for alternate energy sources to power light and heat.

Seda said he is also looking to adopt and implement the administrative code, explore shared services with the school district, and implement Internet and telephone usage policies.

"We pay for 200 cell phones," the mayor said.

Officials may also consider the feasibility of consolidating Jackson's fire districts and developing a long-term capital improvement program, among other ideas aimed at saving money.

During the public portion of the hearing Charlotte Marsala said water towers in some towns are being used to locate antennas for cellular communications.

"That would be a convenient revenue [source] without any expenditure at all," Marsala said.

Bernard Wohlstetter said officials should seek ways to cut expenses. He suggested a wage freeze, having employees pay for part of their dental and health package, and raising medical co-pays.

"These are just a few of the measures the administration should be considering," Wohlstetter said.

Former mayor Sean Giblin also addressed the council.

"To suggest as you (Seda) have, that the prior (government) majority hid information from you or impaired your access to information about the government or its finances is untrue," Giblin said. "Our commitment to five straight budgets was to only tax the residents the minimum amount needed to cover the services we had to provide. We opposed the huge surpluses of the past."

Giblin, who lost the May mayoral election to Seda, said Seda accused him of keeping taxes artificially low by using gimmicks and one-shot revenues, while he was accused at the same time of "spending like a drunken sailor."

Giblin said he approved budgets that cut Jackson's municipal tax rate by 7.6 cents over the six years he served on the committee.

"I find this 19-cent increase excessive and unconscionable," said Giblin, who indicated that the 2006 budget did not take into consideration rising interest rates, freezing wages of department heads and several other items. "You'll pad the books with surplus so you can cut taxes in two years when the three of you seek re-election (in 2008)."

Under Jackson's new form of government there will not be a municipal election in 2007.

In response to Giblin, Seda said workshops were held to review the budget documentation.

"What we have now is someone who comes to the microphone and just reads a political statement," the mayor said. "He just rambles off a series of numbers as if to say that's a complete lie. There was ample opportunity" to come to the budget meetings.

Resident Dan Gross said jokingly that he could not attend the budget workshop meetings because he was working to pay his taxes. He asked about marketing health and dental programs for employees.

"What do you expect to do there and how much do you expect to save?" he asked.

Seda said there are companies that might save the township money, which will be investigated.

Gross said he would like to see more cooperation between the township and the county.

Responding to questions raised by Gross about the fire districts, Seda said not all of Jackson's volunteer firefighters are looking to consolidate, but the possibility of pursuing that course of action will be investigated.

Gross also questioned specific line items including the cost of electric bills, telecommunications, gas bills, fuel oil costs, Shade Tree Commission expenses and several others.

Santos responded to each question and explained how and why each amount was listed.

Sam Goldman said he attended all of the workshops and every item was covered.

"We were told that Mayor Seda and (Councilwoman) Ann Updegrave were on the (previous) Township Committee and were not told about everything that was happening," Goldman said. "All previous administrators ... didn't come forward at any of these sessions and speak in favor or against the 2006 budget."

Bob Lofus asked when work will begin on the 2007 budget.

Santos said work will begin in October and that hopefully it will be presented to the public in February.

This year's budget was delayed when the previous Township Committee did not introduce a spending plan in the spring. Municipal elections were held in May and the new Township Council was elected and took office July 1. Temporary budgets were put in place to pay Jackson's operating expenses until a final budget could be adopted by the new government.

After the meeting, Santos said people who have moved into Jackson since the beginning of the year will get a tax bill for their homes as of the day they closed. For some residents, that may be close to a full year of taxes.

"They will be expected to pay that in a short period of time," Santos said. "[Hopefully], they put some [money] aside until it is called for. That money will go in as revenue and will be added to the surplus."

Santos said he was informed by the tax assessor that there are about 1,500 homes in that category. Those anticipated funds were not included in the 2006 budget.

"It will be in next year's budget," said Santos. "Part of the surplus will be replaced by that revenue coming in."

The administrator said those revenues will not lower the tax rates for this year, but they will be used to help replace the surplus used for next year.