Lower Township Cuts Proposed Tax Increase in Half

VILLAS — In a three hour meeting Monday, Lower Township found methods to cut at least half of its 2.6 cent proposed hike in the local purpose tax, equal to about $540,000 and maybe headed for a zero increase.
When council introduced its 2010 budget last month, it featured a 9.2-cent hike in the local purpose tax rate due mainly to a revaluation of properties that decreased the total valuation of properties in the township by $613 million. With the cuts suggested Monday, the tax hike would drop to 8.3 cents per $100 of assessed value including the damage done by the devaluation.
The union representing Lower Township police, Police Benevolent Association (PBA) Local 59, offered to eliminate all overtime pay for the remainder 2010. The budget contained $228,250 for police overtime.
Charles E. Schlager of PBA Local 59 said police would use comp time instead of receiving overtime pay.
Township Manager Kathy McPherson said the township has spent $58,000 in police overtime so far in 2010.
She said the township eliminated six positions last year through attrition, three in the police department, one from public works, one from the recreation department and one from the construction office for a savings this year of $498,576.
McPherson said she received recommendations from Mayor Michael Beck and Councilman Wayne Mazurek to eliminate five positions this year. She said three positions are currently vacant, one in the police department and two in public works. Two retirements are upcoming.
A supervisory position in public works will be eliminated. She said an entry-level laborer position would be added to public works.
A clerical position would be eliminated in the construction office and the affected employee will be offered a receptionist’s position when an employee retires in June, said McPherson. She recommended eliminating a position in the treasurer’s office when an employee retires in October.
Three requests for promotions would be denied, said McPherson. She said Beck and Mazurek initially asked to reduce the overtime budget by 20 percent, which would bring a savings of $78,000 and reduce the operating expenses budget by another 5 percent equaling a savings of $58,000.
Deputy Mayor Kevin Lare provided a list of suggested budget cuts, some of which were included on Beck and Mazurek’s list.
McPherson said Beck and Mazurek’s suggestions would cut about $460,000. Lare’s recommendations would represent additional cuts. He said he was aiming for a zero tax increase without layoffs.
Lare’s proposals included eliminating one police position, and eliminating a DEP asphalt-recycling permit for $12,000 since Lower Township Municipal Utilities Authority actually does that job.
Lare suggested reducing department budget “other expenses” by 10 percent, reduce the court budget to the prior year level, reduce mayor and council other expenses by $3,000 and reduce mayor and council wages by 1.75 percent.
Lare suggested not replacing a police officer retiring in August. He said the said the police department currently has 43 officers. He is proposing a budget that would fund 41 officers.
Police Chief Edward Donohue said the department has been cut by five officers in a year and a half. He said the township has already cut a patrolman, a sergeant and lieutenant, and is proposing to cut two more.
Donohue said he reassigned a detective and may have to pull resource officers from school duty.
Councilmen Tom Conrad and Glenn Douglass said they were not in favor of reduction of two police positions. Conrad said the township could receive more revenue if a shared service agreement to take over West Cape May’s Construction Office takes place.
Lare proposed cutting out overtime pay for public works, which was budgeted at $101,000. McPherson said public works has already used some of its overtime budget due to snowstorms.
She said FEMA would only reimburse the township’s expenses for one, 48-hour period.
Lare suggested flextime rather than paid overtime for public works and providing the department three additional employees. He said the county has had a no-overtime policy for five years.
Public Works Supervisor Gary Douglass said services such as weekly recycling were increasing, but manpower was not. He said there were still many branches from storms to be picked up. Lare said everyone needed to make sacrifices including residents.
Council agreed to take 25 percent off the overtime budget for all departments. Beck said council was getting closer to a zero local purpose tax rate increase.
Auditor Leon Costello said amendments to line items would delay final passage of the budget beyond a May 3 budget public hearing.
McPherson said the township has saved $641,000 over two years by changing to the state health employee benefits program. Risk management fees have been reduced from 6 percent to 3 percent saving $28,000.
The township changed cell phone carriers saving $5,000 and renegotiated propane gas prices saving another $5,000, said McPherson.
During public comment, resident Fred Long suggested revisiting the budget line item for the reserve for uncollected taxes, which totals $1.9 million. He suggested using $178,000 from that item to reduce the tax rate.
Long also suggested using an additional $100,000 from the township’s surplus account against the tax rate. Costello described using an additional $100,000 as a small risk.
Lower Township Taxpayers Association President Janet Pitts suggested council increase fees for licenses to the maximum amount allowed by the state. She said Lower Township MUA was sitting on an undesignated fund balance of $10 million, which the township could request 5 percent for use in the municipal budget or $500,000 under state statute.
The MUA Board would have to approve the appropriation, said Costello.
Resident Joe Winter suggested council raise yearly fees for marina slips above the annual $4 fee. McPherson said the township has 2,795 boat slips.