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Record High County Budget;Record Low County Tax Rate

By Rick Racela

Freeholders, with nothing up their sleeves but the boom in property values, were to introduce a $124.3-million 2006 budget, up $6.9 million or 5.85 percent over the $117.4 million budget introduced last year.
But the equalized tax rate will decrease 3.5 cents to a new low of 17.1 cents per $100 of as-sessed value. That varies by town according to their assessment ratios. If you’re underassessed, your rate will be higher.
Jovial freeholders nailed the final numbers in a 30-minute session Monday that consisted of 20 minutes of explanation and 10 minutes of congratulations.
Freeholder-Director Daniel Beyel’s annual budget message was not completed in time for the Herald’s deadline.
If the county had left the tax rate at 20.6 cents, it would have taken in another $15 million, thanks to a record $8.3 billion increase in ratables, a 23.4 percent jump, to $43.8 billion. Even if the boom levels off, revaluations already under way should guarantee at least two more years of large ratable increases.
“If we’re not going to spend it, we want to return it to the people who paid it,” said Beyel, in explanation of the tax cut.
This is the sixth consecutive year for a significant tax rate cut and the fourth consecutive year  the county has kept its tax levy — the amount raised by the county tax rate — equal to the amount of new revenue  generated only from new construction, a program advocated by county Administrator Steve O’Connor. That additional revenue totals not quite $2 million.
O’Connor warned this is probably the last year for that because the tax rate is now so low that it wont bring in enough.
If the budget is up almost $7 million, and the property tax will bring in only an additional $2 million, where’s the rest coming from?
The county expects an increase of some $850,000 in state and federal funds.,
It will use almost $16 million, only $200,000 more than last year, of an almost-embarrassingly high, record $36 million surplus. Thus they go into this year with a $20 million surplus, the re-sult of continually underestimating revenues.
Most important is an increase of almost $4 million in “local revenue.”
The major item there, according to county Treasurer Ed Grant, is a $2 million increase to $5 million in fees collected by the county Clerk, most of that attributed to the real estate boom.
The county also estimates interest on investments — more investments at a higher rate of in-terest — will more than double, from last year’s estimate of $625,000 to $1.4 million.
The county also expects another $600,000 in revenue at the Crest Haven Nursing Home, to a total of almost $10 million.
Where’s the additional $6.9 million in the proposed county budget being spent? Not on any new programs.
Salaries and wages are up $2.8 million, 7.3 percent, to $41 million from $38.3 million.
OE (other expenses) are up $3.6 million, 6 percent, to $62.6 million from $59 million.
Capital expenses — for items that will last at least five years — are up only $204,000 to $4.3 million.
And debt service actually drops $157,257, to $7.8 million.
Department heads had requested $3.3 million in additional money for salary and wages. Free-holders took an ax to that, reducing it to $1.6. Biggest and most controversial cut: the Prosecu-tor requested 16 new people; he got three.
Freeholders gave those capital budget requests the usual alphabetical treatment. Items graded “A” and and “B-plus” will happen. Items graded B” ad “C” won’t.
It started as a request for $10.4 million and ended with approval for $3.2 million.
Public hearing on the budget is set for 4:30 p.m. Feb. 28, but the public can ask questions or offer opinions at any freeholder meeting. 
Contact Zelnik at: jzelnik@cmcherald.com

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