Millstone Township taxpayers get a break Tax rate for municipal purposes remains stable, but surplus decreases BY JANE MEGGITT Staff Writer Although the municipal portion of the township's tax rate is not increasing for a third consecutive year, Millstone's budget did not get unanimous approval this year. The tax rate used for municipal purposes will remain at 9 cents per $100 of assessed value, after the Township Committee voted 4-1 in favor of adopting a $7.3 million spending plan for 2007-08 at its May 16 meeting. A homeowner with a house assessed at the township's average of $395,400 should expect to pay about $356 in municipal taxes again this year. Committeeman Elias Abilheira cast the only vote against the proposed spending plan. "I never expected the Township Committee to fail to cut even a single penny from their own budget, given the fact the residents have sent a clear message [that] they want to see spending decrease, not increase," Abilheira said, referring to the proposed school and fire budgets that failed with voters three years in a row. "I guess I was wrong." The spending plan includes a $113,000 increase over last year's municipal budget. To keep the tax rate stable despite the increase, the budget relies on using approximately $2.8 million in surplus, but the township will not know how much that reliance will actually decrease the surplus until next year, when the total surplus is known. Auditor Bill Antonides said that he represents a number of communities. According to Antonides, Millstone's percentage of increased spending in this budget, which is less than 2 percent, is the lowest increase he has seen this year. Abilheira gave a few reasons for his decision to not support the municipal spending plan. He said he does not support the salaries ordinance, which sets the parameters for the salaries of township employees. He also said several salaries in the ordinance are totally off when compared to employee salaries in similar towns. "As the auditor noted, the budget is good and there is less increase than in some towns, but as a rural community with no police force, no public water or sewer, that is how it should be," Abilheira said. "The budget was fine as far as government budgets go, but I always push for aggressive reform to keep taxes low and do not support the status quo." Abilheira also claimed that the budget the committee passed actually represents "a huge tax increase." "It does not show up this year because it is masked by around $2 million of planned debt increase and a plan to deplete surplus by over $1 million, which will likely reduce the surplus to just over $4 million at year end," he said. Deputy Mayor Robert Kinsey said the township spent a lot of time going over the numbers in this year's budget. "It's a pretty tight budget," he said. According to Kinsey, the township will see a $200,000 decrease in debt service from last year. "We continue to manage the surplus so we don't peel it off in one fell swoop," he said. Kinsey said the township has experienced great savings through its interlocal agreements with the Millstone Township Board of Education. He also said that ratables have increased in the past three years by 20 percent, which has helped stabilize the township's tax rate. Abilheira said there could have been hundreds of thousands of dollars in cuts to phase in road improvements and capital equipment over two years instead of one. "It is good politics to pave everyone's road right away, but I think the tax hikes it will soon require is not the best long-term financial planning," Abilheira said. "Roads are not an appreciating asset. "While everyone wants newly paved roads," he continued, "they also want lower taxes, and most people would like to see an extra year or two [of] use out of a road if it will help control taxes." Abilheira suggested further cutting the budget for road improvements from $1.3 million to $900,000. Mayor Nancy Grbelja said that would be fine if township roads had been taken care of in the past. Township Engineer Matt Shafai said the township has 115 miles of roads to maintain. He said the price of asphalt has increased from $45 to $75 a ton. Grbelja said, "We want to make sure when you go down the road, you won't have to buy a new tire because you hit a pothole." Abilheira also recommended cutting the Department of Public Works' (DPW) portion of the municipal budget by $100,000, from $550,000 to $450,000. However, Grbelja said she was not interested in cutting the amount given to the DPW, since the people in that department are doing their work. "We're not raising taxes," Grbelja said. "We're staying status quo." Kinsey said the budget will give the DPW the opportunity to spend money on equipment it desperately needs.