BY SUE M. MORGAN
Staff Writer

WEST LONG BRANCH –– Property owners here will see municipal taxes increase by an average of $168 this year under the $7.4 million budget adopted by the Borough Council for calendar year 2005.

The budget, adopted following a brief public hearing during the council’s April 20 meeting, sports a municipal tax rate hike of 8.4 cents according to documents distributed by Chief Financial Officer Gail Watkins.

With the budget’s adoption, the new municipal tax rate goes from last year’s 60 cents to 68.4 cents for each $100 of assessed valuation, Watkins explained.

As a result, municipal taxes on a property assessed at the borough average of $200,000, would rise by $168 for the year from the current $1200 to $1368 yearly or $114 monthly.

This year’s total budget of $7,452,894.49 is $334,154.80 more than the adopted budget of $7,118,694.60 for calendar year 2004, representing a more than 13 percent increase over last year’s spending plan.

The amount to be raised by municipal taxes is $4,585,266, which is $511,385.20 more than last year’s actual amount of $4,073,880.80.

The municipal budget only covers the borough’s operating expenses and does not include local school board or county budgets.

Salaries and wage increments for unionized borough employees, as previously negotiated by collective bargaining agreements, and higher premiums for group health insurance costs represent the largest line item expenses in this year’s budget, Watkins has said.

Group health insurance for employees rose by $77,000 from $573,000 to $650,000 for this year according to documents released by the borough’s finance office.

In addition, $25,000 has been appropriated to fund the first phase-in year of five for the Public Employees Retirement System (PERS). Another $77,000 was allotted for the Police and Fireman’s Retirement System (PFRS), now in its second of five phase-in years, according to the documents.

Also, $92,000 was allotted to cover the borough’s first year of its Length of Service Awards Program (LOSAP) which was approved by voters in November.

To enable the borough to comply with new regulations put forth by the New Jersey Department of Environmental Protection (DEP), $30,000 was set aside to fund the start up of the mandated storm water management program, Watkins said.

This year’s final budget was formed by using $800,000 in surplus from the $1.3 million in surplus left over as of Dec. 31, 2004, Watkins said.

Another $1,967,583.49 is anticipated in revenues and expected receipts from delinquent taxes equal $100,000 are calculated into the final budget amount.

The borough has also set aside $468,000 as reserve for any uncollected taxes. Last year, the tax collection rate increased to 99.45 percent, up from the previous year’s rate of 98.86, Watkins said.