Avalon Mayor Makes Budget Proposals to Borough Council

AVALON – Mayor Martin Pagliughi Jan. 15 released a 2009 budget message to council for its review and approval in which he expresses disagreement with state tax caps and outlines the 2009 community initiatives and funds.
The following are excerpts of Pagliughi’s letter.
“For the past two years, our budget message warned of the implementation of a four per-cent Tax Levy Cap by the New Jersey Legislature as well as the continued squeeze of the spending CAP. The proposed budget is within the limitations of both CAPS. The borough is under the levy CAP by $207,308 and 2.5 percent spending CAP by $306,106.
“Future municipal budgets will continue to be squeezed by the spending CAP as well as the tax levy CAP.
“In the preparation of the 2009 budget, I have recognized that the trend of real estate value growth has slowed. However we have experienced an increase from $8.702 billion to $8.779 billion in the ratable base as we start 2009. Unfortunately, despite slowed economic growth in our state and the associated pressures placed on our taxpayers, in this recessionary environment, the borough is required to appropriate funds in legal and planning studies to meet the unfunded mandates of the State Council on Affordable Housing (COAH) regulations as well as continued litigation expenses associated with the misguided NJ DEP public access regulations. Despite an option proposed by the governor to defer pension obligation expenses to a future date, this budget does contain the full funding of pension obligations in 2009.
“The borough continues to deal with the impact the revenue tax cap levy on the present and future budget years to finance statutory increases in the budget. As such the borough will have a modest increase in the 2009 levy. The Borough will continue to investigate the maximization of other non property tax revenue sources such as construction code fees, cell tower revenues, etc. to supplement revenues.
“In order to meet these present and future challenges, this budget anticipates a .179 cent combined Library and Municipal tax rate 2009 compared to .171 cent rate in 2008. This is an increase of about eight tenths of one cent (0.008 cents) per $100 of assessed value. The increase is due principally to fund the costs associated with pension contributions, library expenses and general government expenses.”
CURRENT FUND:
“The proposed total 2009 current fund budget is $22,419,567. This amount represents a 2.56 percent or $560,475 increase in appropriations when compared to the 2008 budget of $21,859,093.
WATER AND SEWER UTILITY:
“The 2009 budget for Water and Sewer is $5,804,900, a 0.81 percent increase from the 2008 figure of $5, 758,000. The major drivers of the utility budget include utilities costs and the CMCMUA appropriation for the service charge of $2,650,000, which accounts for 46 percent of the total budget. The revenue fund balance is stable and as such the municipal water and sewer rates will remain unchanged.
BEACH UTILITY FUND:
“The 2009 Beach Utility Fund Budget is $1, 276, 663 which is a 3.34 percent increase from $1,236,436 in 2008. The increase in this budget is due to the increased costs to maintain and staff the beach operations to remain competitive with neighboring municipalities.
2009 COMMUNITY INITIATIVES:
“Maintain our most valuable natural resource, our beaches. In partnership with the NJ Department of Environmental Protection, and the US Army Corps of Engineers it is pro-posed that a $2.3 million dollar 225,000 cubic yard trucked beach fill be completed from 9th to 18th Streets by the spring of 2009. It is estimated that the USACOE will provide $1.5 million toward this trucked sand restoration project.
“The Borough and NJDEP share of this project is $800,000 with a split of 75 percent state and 25 percent local match. As you recall, this was the same area that needed to be filled with 225,000 cubic yards of sand in 2008 at a cost of $2.37 million of which the Borough received a grant from the NJDEP for $1,776,561. The Borough has appropriated contingency funding in order to supplement sand quantities if necessary.
“Reconstruct Dune Drive Southbound between 12th and 19th Street. The borough received $150,000 in municipal aid grant under the NJDOT local funding program for the completion of this project in the spring of 2009. Remaining funds from prior year road projects will provide funding for this project.
“Completion the State funded Back Bay maintenance dredging of Long Reach and Whale Harbor was recently completed this month. The dredging of Avalon’s various Back Bay channels is a multi-year, multi-faceted project that requires the development of an overall dredging master plan and a cost effective solution for the placement of dredge materials and the ultimate beneficial reuse of this materials.
“Address housing issues related to the preparation of an affordable housing plan (COAH) fair share housing and plan endorsement by the Planning and Zoning Board and the governing body.
“Complete renovation and construction of the Avalon Public Safety Complex in 2009. This project includes the renovation of approximately 7,500 square feet of existing building and the construction of new space to house the rescue squad. This building will house the Emergency Management, Rescue Squad, Fire Department, Record Keeping, Equipment Storage, and Police functions of the Public Safety Department as well as comfort station/restrooms accessible to the general public 24 hours per day.
“Replace two rooftop HVAC units at Avalon’s Community Hall. Bids were received in November 2008. The project cost is $154,470 and a contract has been awarded. Preconstruction meeting will be held on January 20 and the project is scheduled to be completed before summer.
“Complete the interior and exterior painting of the 200,000 gallon elevated water storage tank located at 13th Street is slated to be done in 2009. This project is necessary in order to maintain the reliability and quality of the Borough’s drinking water and extends the useful life of the tank for approximately 12-15 years.
“Replace water well number seven at 67th Street and Dune Drive will commence construction in the early of 2009. New Jersey American Water Company, our service provider for the maintenance, operation and management of our utility system, along with the borough engineer (Tom Thornton) has recommend replacement of this well.
“This replacement well that will be drilled to a depth of 870 feet and will be similar to the recently drilled replacement well #3 at 13th Street. This well will provide a safe and dependable supply of drinking water to Avalon residents in the years to come. The cost of this project is $750,000.
“Enhance public safety notification efforts by implementing the channel two local public access television station. Avalon is entering into a shared service agreement with Sea Isle City and Stone Harbor to redesign the television channel to provide more timely community information, 24 hours a day. The channel will also broadcast emergency information immediately, when needed. Avalon has received a $40,000 grant from Comcast to fully fund this project.
“Global connect emergency notification system. This emergency voice broadcast system that was installed in 2007 as a public safety service allows the Borough to rapidly contact 5400 households and cell phone numbers and leave a detailed message notifying Borough residents of a weather event or other emergency situation. This system was utilized to its fullest during the past summer when medical waste was purposefully put in the ocean and washed ashore in late August.”