Allentown faces 24-cent tax increase
Town may also see 13-cent tax hike for school budget
BY JANE MEGGITT Staff Writer

ALLENTOWN - Mayor Stu Fierstein has called the proposed 23.9-cent rise in taxes as a result of the 2008-09 municipal budget disgraceful.

The Borough Council introduced the proposed $2million budget onMarch 24 andwill hold a public hearing on the spending plan on April 29.

Themunicipal budget relies on a total tax levy of $1.3 million, which is a $200,000 increase over last year's levy. A homeowner with a house assessed at the borough's average of $153,300 would pay an additional $366.39 per year in taxes if the budget passes.

Borough residents are also facing a 13- cent increase in the tax rate this year as a result of the proposed school budget. Taxes for the average homeowner in the boroughwould increase a total of $565.68 if both spending plans are adopted.

Fierstein attributed almost 20 cents of the proposed increase in the borough's tax rate to Gov. Jon Corzine's decision to cut state funding to smallermunicipalities. Themayor said the governor's action impedes the operation of the town's budget.

While the borough received state aid in the amount of $228,592 last year, it anticipates receiving $103,437 this year.The state'sDepartment of Community Affairs said these cuts alonewould increase taxes by $187 per house.

The mayor said the borough would not move its budget forward until the state showed reasonable action regarding budget cuts for towns of less than 5,000 people. According to the Department of CommunityAffairs, Allentown has a population of 1,847.

Fierstein said thatAllentown already does a number of things Corzine has encouraged smaller municipalities to do, including contracting for shared services with other towns.

"It doesn't mean it's cheaper than inhouse," Fierstein said, adding that shared services don't just happen overnight.

The largest portion of the proposed municipal budgetwould go toward the borough's police department.

Borough Clerk Julie Martin said the department has three police cars, one police director, one sergeant and three officers. Last year, nearly $451,000 of the borough's budget was appropriated for the department in salaries and wages. This year that amount would rise to $458,500.

Last year, the borough also budgeted $53,510 for other expenses in the police department, of which nearly $44,000 was used. This year's budget for other police expenses totals $50,000.

Fierstein noted that neighboring towns are frustrated for possibly having to pay for New Jersey State Police coverage due to Corzine's proposed state budget cuts.

"It's not so easy to understand someone's frustration with having to pay for the state police when the distribution [for state police funding] occurs across 566 municipalities," Fierstein said.

If the borough's proposed budget passes, appropriations for the police and firefighters' retirement system of New Jersey would increase from $50,372 last year to $83,642.

The borough has also budgeted $34,000 for Hope Fire Company and $27,720 for the Allentown First Aid Squad, which are the same contributions it made to both entities last year.