Millstone slashes spending to lessen tax blow
Township cuts offset decreased state aid, increased fixed costs
BY JANE MEGGITT Staff Writer
Taxes for the average Millstone homeowner would rise $32 this year if the township passes the budget discussed at a special April 2 meeting.

The proposed spending plan amounts to just under $7 million and may undergo some changes before the Township Committee officially introduces it at the April 16 meeting. The proposed 2008-09 spending plan is $372,571 less than last year's budget, which totaled almost $7.4 million.

The tax rate for municipal purposes in 2007 was exactly 9 cents per $100 of assessed value while the proposed 2008 rate is just under 10 cents per $100 of assessed value.

Township Administrator James Pickering said work on the 2008 budget started in September and that more than 100 hours were spent putting the plan together.

"All department heads had a significant impact on this year's budget," he said.

Pickering said the budgets of some departments have been cut between 30 and 35 percent.

During the special meeting on the budget, Pickering gave a PowerPoint presentation that outlined major issues the township is currently facing that have affected the spending plan.

Pickering said health-care-benefit costs will rise 9 percent this year. However, the increase is less than the historical 12-14 percent rise in such costs, he said.

Township employees are covered under a state health plan that recently made changes to its pension system and new-hire benefits, according to Pickering.

The township also expects a 30 percent increase in costs for 911 dispatch. Pickering said that the Monmouth County Sheriff 's Office will now charge the township for first aid and fire calls.

Mayor Nancy Grbelja noted that the governor's office controls the sheriff 's office.

Pickering said the township's pension contributions have increased 88 percent. Chief Financial Officer Annette Murphy said the township is in the fourth year of a five-year phase-in for such costs.

"Next year is the maximum liability the township will have," she said. "We anticipate slight increases after that."

Pickering said that the township's construction revenues have declined 20 percent. He also noted that Gov. Jon Corzine's reduction of state aid to small municipalities has resulted inMillstone losing $59,680. Pickering said that amount could change since the state is considering phasing in the cuts in aid to smaller towns.

Pickering noted other increases and said utility costs for municipally-owned properties have gone up almost 13 percent, field maintenance costs for parks have risen 10 percent, storm water management compliance costs have increased 15 percent, and asphalt, gas and road material costs have gone up 12.5 percent.

Pickering said another significant increase comes as the result of a state-mandated court security directive, which will raise costs between 15-25 percent. The directive requires the township to place bullet proof glass along the dais and to install alarm systems and metal detectors for the municipal court, he said.

To counter rising costs, the township will not replace two retiring employees, according to Pickering. He also said the township cut municipal operating expenses by 6.9 percent. The township will also decrease vehicle maintenance expenditures by almost 9 percent and the general administration budget by almost 8 percent.

To further decrease costs, Pickering said that the township would cross-train its existing workforce and increase cooperative purchasing with the county on items such as gasoline.

Pickering said that the township has restructured its recreation insurance premiums for a 50 percent savings and negotiated its liability insurance costs down from an 8.8 percent increase to a 4 percent increase.

Capital projects in the budget this year include the construction of a statemandated truck wash for the Department of Public Works (DPW). Grbelja said members of the township's Environmental Commission are in favor of the project.

Pickering said the township would develop interlocal agreements to provide the truck wash service to local towns. The town could also strike an agreement with the Board of Education to have school buses cleaned at the facility, he said.

While the original cost of the truck wash was estimated at $250,000, the project is now expected to cost $127,000, according to Pickering.

Pickering said the township expects the state to provide $160,000 in grants for road repairs.

Township Engineer Matt Shafai has prioritized major road repairs, which include renovations to Baird Road from Millstone to Stillhouse roads, Battleground Road, Yellow Meeting House Road, the DPW and Rocky Brook parking lot, Stillhouse Road, Chambers Road and drainage work on Nurko Road. Pickering said the township expects the state to provide $160,000 in grants for road repairs.

The budget contains $322,000 total for DPW capital expenses, including the replacement of two pick-up trucks that are 18 and 15 years old, the replacement of a 15-year-old wood chipper, the purchase of an aerator for fields and parks and the purchase of a case loader.

Pickering said the township has been proactive in seeking out interlocal agreements, such as a contract with Upper Freehold for animal control services. He noted that two studies are under way regarding the regionalization between Millstone, Roosevelt and Upper Freehold for court, fire and emergency services. The studies are being funded by a state grant, he said.

The township is also looking into creating a community solar program for residents, which would generate revenue for the town.

Pickering said township-owned properties of no significant use would be sold or used for cell phone antennas to bring in additional monies.