Preliminary budget includes 11-cent increase Pensions, insurance, library cited as reasons for growth BY KATHY CHANG Staff Writer Woodbridge Mayor John E. McCormac presented the preliminary 2008 municipal budget recently that would increase taxes by $83 for the average homeowner, but state aid could lower the increase to $68. "Assuming that we receive the same level of state aid, which was $700,000 last year, the proposed 2008 property tax rate will increase by $68 to the total of the $1,155 for the average township household," said McCormac. The municipal tax rate will rise 11 cents, from $1.43 to $1.54 per $100 of assessed valuation. The owner of an average home assessed at $75,000 in the township would have to pay $1,155 in municipal taxes, which does not include county and school taxes. The mayor, who presented the preliminary budget at the Township Council meeting on Sept. 25, said much of the increase is attributed to state pension, insurance, and library costs. "About 91 percent of the budget increase, we have no control over and we must pay," said McCormac, who said that $60 of the $68 is what is uncontrollable. The mayor said state pension costs are up $1.893 million, library costs increased to $430,337, and insurance costs are up to $644,224. McCormac said in addition to the state pension, library and insurance costs, the budget includes the addition of two new police officers, who will be hired in January 2008. "We are $744,407 below the state-mandated 4 percent maximum spending CAP, and we are $546,628 below the state-mandated maximum revenue CAP," said the mayor. Township officials said they hope this year is the last year of pension cost increases. The mayor said he is confident that the township will get state aid. "If not the same, then either more or less," said McCormac, who said he expects the township to receive the state aid sometime in November. "Last year, we received our state aid the day before Thanksgiving." The $99.8 million budget, which runs on a fiscal year - July 1 to June 30 - increased by approximately $3.3 million from $96.6 million in 2007. Last year's budget increased by approximately $6 million from the 2006 budget. McCormac, who said the township has not cut and would not cut any programs and services, said the township has saved money by reorganizing several departments to make them work more efficiently. The mayor said that as an example in 2007, the township purchased $600,000 for Public Works equipment, which has been used for maintenance, repair and repaving of municipal and school district infrastructures. "This will allow us to save the township a significant amount of money annually and allow the township to use some of those savings for property tax relief and for overall road programs," he said. McCormac said the township has been bringing in new revenue by seeking host community benefits from three township business entities in Keasbey that either operate transfer stations or recycling businesses The mayor said private corporations are not required to pay host community benefits, but said by his administration's aggressive approach, they were able to reach an agreement with Bayshore Recycling Corp., which resulted in a milliondollar revenue enhancement to the township budget. "We are bringing in $1,140,000 to the fiscal 2008 budget as new revenue with the agreement," he said. McCormac added that the township has netted $225,000 from a sale of 3 acres of industrial property to Tilcon, an asphalt recycling facility, also in Keasbey. The mayor said additional tax revenue is expected to come from the ProLogis redevelopment project of eight warehouses in Port Reading, which the mayor announced in January. ProLogis is a Denverbased distribution facility. "The first warehouse is expected to open in November and it is anticipated that we will receive our first tax payment of $313,000 for the budget," said McCormac. Township officials will hold two public hearings on the proposed budget at 5 p.m. Oct. 17 and 23 in council chambers.