AVALON – Borough Council had public hearing and final action on its 2009 budget totaling $21,443,750 at its meeting April 22.
The borough’s new tax rate is 18.3 cents, up almost a penny from 17.1 cents in 2008. The borough’s ratable amount has increased by $73 million from $8.704 billion in 2008 to $8.777 billion for 2009.
Tax levy increased by about $1.2 million from about $14.8 million in 2008 to about $16 million in 2009.
The budget has increased by about 3.9 percent, just under the state-mandated 4 percent levy cap. Officials said that if the borough doesn’t utilize its maximum increase amount, it would affect its ability to increase the budget next year.
Nearly half of the borough’s $4.8 million surplus was applied to the 2009 budget; $2.1 million was used in the 2009 budget with $2.66 million remaining.
Councilwoman Nancy Hudanich said it is necessary to maintain surplus as an emergency fund for beach replenishment, particularly when state and federal funds are being cut.
On average the borough spends at least $1 or 2 million on beach replenishment every year, which “reinforces the borough’s dedication to safety,” Hudanich said.
Business Administrator Andrew Bednarek noted surplus is important to maintain a decent bond rating.
Dredging of state-owned back bay channels concluded in March. The $732,416 project cost was completely state-funded.
Borough channels will be dredged in fall 2010 with a project cost of $1.1 million.
Hudanich said state aid has decreased by 13 percent over the past two years and assessed valuations have had flat growth over the past four years.
Beach and Utility fund appropriations include have increased about $50,000.
Harry Scott, senior partner with auditing firm Ford Scott Associates, was on hand to answer questions.
The borough has a $100,000 capital improvement fund and a little under $4 million in debt service. The reserve for uncollected taxes totals over $1.35 million.
The borough anticipates about $2.87 million in miscellaneous revenues this year from things like cell phone antennas on the water tower.
Contact Truluck at (609) 886-8600 ext. 24 or at: ltruluck@cmcherald.com.
Town Bank – Trumpies you got your wish. You made your bed now you you have to sleep in it. Next 4 years will eventually tell you did you get in the right bed.
