Mayor Thomas F. Kelaher announced today that the Township Council approved a Resolution on June 29, 2010, during the regular meeting of the governing body amending the Township budget that was previously introduced on May 25, 2010. Following the public hearing on the budget on June 22, 2010, the Township was advised that the amendment was necessary as a result of comments from the NJ Department of Community Affairs following a review of the budget as introduced pursuant to the State Budget Law. The specific details of the amendment as approved by the governing body are as follows:
- Reduction in the overall size of the budget from $95,417,213 to $94,197,667 or a reduction of approximately (1.3%)
- Reduction in the amount to be raised by taxation from $58,422,698.88 to $56,897,152.29, which equates to a reduction of .89 cents or just under a one cent reduction on the tax rate. This represents a reduction of (3%) from the tax rate in the budget as introduced. The final tax rate will be 33.24 cents per $100 of assessed valuation which represents an increase of 4.1 cents over the 2009 rate. The tax rate in the budget as introduced was 34.14 cents per $100 of assessed valuation.
- Corresponding reductions on the expenditure side of the budget, most notably a reduction in the Reserve for Uncollected Taxes of over ($1,000,000) which was necessary in order to present a balanced budget.
“This has been exceptionally challenging financial year for Toms River,” Mayor Kelaher noted. “The latest changes to our budget result in further cuts which may adversely impact our budget next year, however, in order to cope with the loss of over $2.4 million in State Aid coupled with the other factors we have dealt with that are out of our control, we have little choice,” the Mayor added. The Mayor noted that the following factors totaling over $14 million severely impacted the Township budget this year:
- Loss of State Aid ($2.5 million)
- Decrease in Available Surplus Revenue ($6.155 million)
- Reduction in overall assessed valuation of the Township by over $450 million from tax appeals resulting in a substantial loss of revenue
- Loss of investment interest based on lack of funds to invest ($1.5 million)
- Depletion of reserves and increased costs of over $1.2 million for snow removal based on winter of 2009-2010 and the 6 separate and severe winter storms
- Increased costs associated with employee group health insurance ($1.2 million)
- Increased costs associated with state-administered pension plans for PFRS and PERS ($560,000)
The Township will hold a second public hearing on the Amendment to the Budget only on July 13, 2010 during the Regular Meeting of the Township Council set for 6:00 P.M. The State NJ Dept. of Community Affairs has authorized the Township to adopt the budget as amended so it is likely that the budget will be adopted on 7/13/2010.2010 Budget Hearing Presentation
2010 Approved Budget
Approved Budget FY 2008-2009
Transition Year Budget for 7/1/2009 to 1/1/2010