EATONTOWN — The Eatontown Borough Council adopted the 2010 municipal budget, approved reductions to the 2010-11 Monmouth Regional High School District tax levy, and approved the 2010-11 Eatontown local school district tax levy at its May 12 regular meeting.

The council adopted the municipal budget, introduced and approved on April 14, with minor amendments to two grants.

According to Robert S. Oliwa, C.P.A., of Oliwa & Co., Freehold, the state Division of Local Government Services suggested the amendments after their review of the budget.

The Clean Communities Program funding was adjusted from $22,793 to $23,786 and the Body Armor Fund was adjusted from $3,590 to $1,403.

This resulted in a net decrease of $1,194 to the general appropriations, reducing the budget from $22,238,000 to $22,236,806.

Oliwa said both grants were finalized after the introduction of the budget.

The council unanimously approved the amendments.

The amendments did not affect the tax levy of $13,949,516, which is an increase of $834,726, or 6.36 percent, from 2009.

However, despite this increase, Oliwa explained, the average homeowner assessed at $310,000 will be taxed $2,030.50, $133.50 less than in 2009. This is a 6.16 percent decrease from last year’s average assessed tax of $2,164.00.

The introduced tax rate will be 65.5 cents per $100 of assessed value for 2010.

In 2009, the average house in Eatontown was assessed at $400,000. Since then, a reassessment reduced this value to $310,000 for 2010.

Mayor Gerald Tarantolo said the reassessment shifted the tax burden by 4.7 percent from residential to commercial, resulting in reduced taxes for residents.

Eatontown will receive $1,464,617 in state aid for 2010, a reduction of $376,509 from 2009.

The largest appropriation increases from 2009 were pensions for the Police and Fire Retirement System (PFRS) and Public Employee Retirement System (PERS), police salaries and wages, and health insurance.

Pensions increased by $117,339 to $1,273,955, a 10.15 percent increase.

Police salaries increased by $168,565 to $4,627,256, a 3.78 percent increase.

Health insurance costs increased by $319,665 to $2,783,965, a 12.97 percent increase.

“Other towns have to lay off tons of people to then have only a 4 percent increase, compared to Eatontown, where I think we’ve stressed stability over a period of years,” said Councilman Anthony Talerico Jr.

He added that he would like to see public budget workshops next year.

Councilman Mark Van Wagner also expressed optimism.

“I think the town is finally going in the right direction. I think the average resident is going to see a significant tax reduction, but you don’t turn the ship around in one year and … with all the interesting discussions going on at the state right now, I do think some of that is going to transpire down locally,” he said.

Talerico also pointed out that Eatontown employees pay into their health benefits.

“One could argue that it’s not enough or too much, but the fact is, they are. On the public worker side, Eatontown is well ahead of the curve,” he said.

Tarantolo added that this has been the policy since 2006.

“We were one of the first municipalities that actually negotiated with our bargaining units where our employees pay a portion of their health benefits. We recognized that in this day and age, the free ride of health benefits no longer exists,” he said.

The council also unanimously approved a bond ordinance appropriating $1,351,666 for 2010 capital projects, with $1,283,750 of that to be bonded.

The ordinance allocates $450,000 for road improvements, including Clinton Avenue phase two, paving, sidewalk improvements, and curb and drainage improvements.

Acquisition of machinery and equipment, including computers and software, two copiers, video conferencing for court, blood pressure machines for first aid, and an above-ground lift for the garage will cost $218,180.

The ordinance allocates $150,073 for improvements to public buildings, including various heating and cooling improvements, restroom renovations in Borough Hall, window replacement at the museum, and electronic locks onWampum Park restrooms.

According to the ordinance, $358,413 will acquire a utility truck for the fire company, a rear-loader garbage truck, two pickup trucks for Department of Public Works, and tractor and grass-cutting equipment for the Parks Department.

Voters rejected the Monmouth Regional High School District’s $18,756,384 tax levy on April 20. On May 12 the council approved a resolution reducing the levy by $50,000 and recommending it be reduced from the health benefits line item.

The newly approved tax levy equals $18,706,384.

Borough Administrator George Jackson said that Tinton Falls and Shrewsbury, with whom Eatontown shares Monmouth Regional, indicated that they would also pass equivalent resolutions.

Finally, the council certified the Eatontown School District tax levy of $13,076,199 without changes.

According to Jackson and Borough AttorneyAndrew Bayer, the Borough Council is unable to further reduce the levy because it is below the required local share as established by state regulation. The statutory minimum is $13,660,464.

The reassessment had a similar effect on the Eatontown Public School District budget: the tax levy was the same as 2009- 10, but the average school tax decreased by $159.