Middletown Introduces Budget With Nearly $4 Million In Spending Cuts
Conforms With 2% Cap Levy Law Absent Needed Tool Kit Reforms
MIDDLETOWN – The Middletown Township Committee anticipates introducing its 2011 municipal budget that is $3.87 million (5.9%) less than the Township’s 2010 budget.
“Middletown’s proposed municipal budget is very austere and in full conformance with the new 2% cap levy law despite the Legislature’s continued failure to enact the Governor’s tool kit reforms that would empower the Township to make further cuts,” said Middletown Mayor Tony Fiore. “We are hopeful to continue to rein in spending through ongoing negotiations with the Township’s collective bargaining units with a focus on decreasing the Township’s health care costs.”
“Cuts in the proposed budget include the layoffs of 26 employees, including 10 police officers, and the third consecutive year of salary freezes for the Township’s managerial employees,” continued Fiore. “Middletown will continue to focus on core governmental functions while seeking other ways to continue to reduce costs though interlocal agreements and the Township’s solar initiative that is currently under way.”
Proposed Budget Data and Facts
· The proposed 2011 municipal budget is $61,114,285 compared to the adopted 2010 budget that was $64,979,576.
· The proposed budget represents an actual decrease in spending of $3,865,291 (5.9%) from the 2010 budget.
· The largest cost drivers offsetting the Township’s $3.87 million in budget cuts are tax appeal refunds, State-mandated pension contribution increases of 22%, and costs associated with deferred charges due to numerous retirements last year.
· The proposed 2011 budget anticipates an increase in the total tax levy of $1,357,855 which complies with the new 2% cap levy law and will cost the average Middletown homeowner approximately $5 per month.
· The municipal budget makes up only approximately 22% of the average property tax bill, the remaining portion relates to the school and county tax levies.
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Saying this represents a 5.9% decrease in spending compared to last year’s 13.85% increase is like saying “well we overspent last year and not overspending quite as much this year”
Nice try working the numbers game when the TC denied there was a 13.85% increase last year.
No credibility.
Can someone explain please how you cut spending by $4m but need to increase the amount collected by taxes by $1.58m? It must be due to the fuzzy math they use in Middletown
Very easy Mike. When costs continue to rise but revenues continue to fall, the tax levy is affected. So in essence, the Township probably cut $8m from the budget but only $4m is realized. I guess the Democrats would need a finance committee to figure that one out. Maybe you and Mr. Tupee above could serve.
Time for another rerun of “The Liars Club”.
Well Art, it seems that your story has attracted the Middletown Demorats to your site. Roll call please: Mike, Jeff, anyone see Barbara???
Dopey Dem, why don’t you and your fellow TC members just be honest for a change and let the public know what the true numbers are? Presenting this as a decrease compared to last years 13.8% (which you denied) is all smoke and mirrors. Distorting the truth again.
Anyone with half a brain can see that.
BTW, I’m also Jeff and not a Lincroft resident Gerry. Although I wouldn’t mind being one and don’t disagree with them either.
If a half a brain is needed I can see why you see what you want and make absolutely no sense.
And by the way I am a Lincroft resident who is proud of Middletown. Maybe you could move into one of the new COAH units your party is jamming down our throats if you want to live in Lincroft so bad.
Lincroftres, I’m not a Dem. and your accusation regarding COAH is getting very stale. We all know the Republicans who have been in charge were responsible for the COAH obligations in Middletown. They missed their opportunity to trade their obligation with Red Bank, that’s why were stuck. Enough with the blame, distortion and propaganda. Focus on 2011 and the incompetent leadership in this town. That’s the problem.
Lincroftres, We’ve got COAH going around the corner from us thanks to Gerry Scharfenbegr & co., so stop your whining.
Like Jeff said “it’s all about incompetent leadership”. There must be a lot of Kool aid in Lincroft, if you’re so proud of Middletown.
Obviously you belong to the Republican elitist’s club who control everything. No wonder you’re brainwashed.
Based upon information gleaned from another blog (RBGreen) and the official Middletown press release and 2010 budget information, Middletown residents are paying more and getting less.
Last year, 2010, both the tax rate and the tax levy went up about 13.8%. Significant increases for any town and well above the 2010 statewide average –about 7%.
According to R.B.G. blog, this year the tax rate went up 20%, or eight cents for every $100 of assessed value . It looks like the tax levy increase for 2011 is coming in at about 3%. The levy is the actual amount that has to be raised in taxes to balance the budget — proposed projected spending.
This number, 3%, appears relatively small until its impact is translated into dollars. In 2011, the Middletown Township Committee will need about 43 million taxpayer dollars to balance its $61 million in projected spending. 70% of spending is property tax dollars and the rest of the revenue is from other sources. Why hasn’t the committee developed other sources? Over the last two years the combined overall tax rate increase is 33.8% and the combined overall tax levy is 16.8%.
What is not transparent in the budget presentation is $350,000 in taxpayer fees borrowed (will need to pay back) from the Sewerage Authority and about $500,000 in tax dollars taken from the public library. Also, the use of $1,300,000 Board of Education tax dollars acquired through a recent tax deferral resolution is not clearly spelled out in the Township’s 2011 proposed budget. Just more Middletown carnival smoke and mirrors. How would these numbers impact the cap if they were actually part of the 2011 tax levy?
These tax levy and tax rate percentages and dollars do not cover retroactive collective bargaining salary increases that are currently on the table. These increases will retroactively inpact this budget unless the increases for this year appear in the form of higher numbers for 2012 and 2013.
Taxpayers give all of this and get 26 fewer people to provide services. So much for sound fiscal planning by the township committee — paying more and getting less.
So Russian Pilgrim – why not tell the whole story? Because of the greedy union thugs that have this state in a headlock, the cost of labor, which according to the Governor, is $3 out of every $4 spent by government, keeps going up astronomically. When that happens, it costs taxpayers more for fewer workers. The unions have priced themselves out of the market. Every day the headlines are filled with towns having to lay people off. 26 is nothing when you look at places all over the state from Newark to Camden to Brick. You can thank the unions for the mess this state is in.
“Page 6 -Playbook- insert “greedy union thugs”…..” zzzzzzzz
We will appreciate the historic times we are in when we look back after a few years. Who would have ever thought that we would have a visionary like Christie, and other like-minded patriots like Scott Walker and John Kasich who would shine the light on the incredible greed and indifference to the taxpayers shown by municipal unions. We finally understand why property taxes will never come down – U-N-I-O-N-S!!! Break the unions and towns will have a chance. Every last one of them – teachers, cops, fire, every public worker union must be broken. Those parasites are bleeding the taxpayers to death. And their handmaidens in the Democrat party should be the next to go.
Christie in 2012,
Here is some more of the story. What do the unions, public or private, have to do with the financial mismangement as well as general mismanagement that the Republican majority in Middletown has bestowed upon Middletown residents. Have you been taking Red Herring 101 from Dr. Scharfenberger and follow-up lessons from Mayor ‘Can-You-Spare-Me-A-Dime’ Fiore?
So far to date, a total of $700,000 of resident fees borrowed from the Township of Middletown Sewerage Authority; $570,000 in resident tax dollars taken from the Middletown public library for a total of $1,770,000 used to balance budgets in 2010 and 2011. The $700,000 owed to the sewerage authority has to be paid back because it is a loan and the authority just can’t give money away — they can give away patronage, but not money. The Republican township committee will probably find a way of bonding (another form of loan with interest) to pay it back so Peter Carton can make a few bucks in the process.
Let us not forget the, 2008, cell tower lease sale for $890,000 minus $460,000 in lost revenue over five years that netted the good taxpayers of Middletown $430,000. What a deal! This was one of Mayor ‘Monty Hall’ Scharfenberger’s finest moments. Art G. had a great time with it in his “Stupid Is As Stupid Does” article — Art please run that one again for those who weren’t following you back then.
If you take the $850,000 used to balance the 2011 budget and add it to the 2011 tax levy ($500,000 is tax dollars and 350,000 is fees, which is the a first cousin of taxes) how does that affect staying within the 2% tax levy cap. Does it add an additional 2% , 3% or 4%? Do the math and get back to let us know.