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South River Officials Say Tax Impact Is Not Known (The Sentinel)
1. 4/22/13 South River officials say tax impact is not known | eb.gmnews.com | East Brunswick Sentinel
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South River officials say tax impact is not known
Superstorm Sandy described as having profound effect on 2013
municipal budget
BY JACQUELINE DURETT Correspondent
SOUTH RIVER — A 2013 budget presented during the March 25 Borough Council meeting had one
element missing — whether there will be a tax increase.
The tax impact is “currently under debate,” said borough Business Administrator Frederick Carr, who
gave the presentation.
This year’s tax rate has not yet been determined, but last year’s total tax rate was 6.716, according to
Carr.
Carr said the borough suffered a significant financial impact from
superstorm Sandy, and officials are looking to stabilize spending.
According to the presentation, the borough faces costs of more
than $3.5 million to replace destroyed infrastructure and to
mitigate flood hazards according to Federal Emergency
Management Agency (FEMA)’s guidelines and flood-insurance
maps. Other expenses include $165,000 in employee overtime;
$334,000 in landfill and Dumpster charges; tree removal; the
cleaning and repair of 55 Reid St., which was severely flooded;
providing a temporary pump on Jackson Street; replacing and
repairing electrical supplies, poles and transformers; and
miscellaneous costs.
2013-04-18 / Front Page
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Democratic Councilman Thomas Roselli, who chairs the budget committee, said Sandy was a “game-
changer” when it came to this year’s $35.8 million spending plan.
“There are houses that will not be rebuilt,” he said. “You can’t expect them to pay property taxes on
houses they can’t live in.”
Some businesses have closed, also resulting in lost tax revenue, he said.
“The news we got was that we had to make up 19 points (cents on the tax rate) over and above last
year’s budget,” he said. The budget committee has thus far found savings to achieve 16 of those 19
points, he said.
The owner of a property assessed at last year’s average of $86,000 currently pays approximately
$1,709 per year for the municipal portion of the property tax bill.
“We will keep working; we will keep striving,” Roselli said. “This budget will be better by the time it is
presented in its final form.”
Republican Mayor John Krenzel said that if there is a tax increase, it would be because of the loss of
revenue from Sandy, as other expenses are flat. However, he said he has concerns about what he
sees as a lack of longterm planning on the part of the Democratcontrolled council.
“From what I understand, the budget committee wants a 10 percent cut from the department heads.
This is after the budget has been introduced. What [the Democrats’] plans are, no one knows,” he said.
Krenzel said the Democrats made budgetary promises during the last campaign “without ever
considering that something bad may happen.” He also said he disputes the idea that the council
inherited a financial situation worse than was anticipated.
Krenzel also took issue with the proposed capital budget, which totals just over $2 million, of which
$1.84 million will go to debt service. Krenzel noted that no specific capital improvements were
proposed.
“Aren’t we going to pave any streets this year?” he asked, explaining that the road projects currently in
progress were funded in previous projects.
The mayor said the budget relies too heavily on one-shot revenues, such as the anticipated sale of the
former Lincoln School, which will be publicly auctioned on April 17.
“It is the same Democrat philosophy: Budgets are planned from Election Day to Election Day,” Krenzel
said.
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![4/22/13 South River officials say tax impact is not known | eb.gmnews.com | East Brunswick Sentinel
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Democratic Councilman Thomas Roselli, who chairs the budget committee, said Sandy was a “game-
changer” when it came to this year’s $35.8 million spending plan.
“There are houses that will not be rebuilt,” he said. “You can’t expect them to pay property taxes on
houses they can’t live in.”
Some businesses have closed, also resulting in lost tax revenue, he said.
“The news we got was that we had to make up 19 points (cents on the tax rate) over and above last
year’s budget,” he said. The budget committee has thus far found savings to achieve 16 of those 19
points, he said.
The owner of a property assessed at last year’s average of $86,000 currently pays approximately
$1,709 per year for the municipal portion of the property tax bill.
“We will keep working; we will keep striving,” Roselli said. “This budget will be better by the time it is
presented in its final form.”
Republican Mayor John Krenzel said that if there is a tax increase, it would be because of the loss of
revenue from Sandy, as other expenses are flat. However, he said he has concerns about what he
sees as a lack of longterm planning on the part of the Democratcontrolled council.
“From what I understand, the budget committee wants a 10 percent cut from the department heads.
This is after the budget has been introduced. What [the Democrats’] plans are, no one knows,” he said.
Krenzel said the Democrats made budgetary promises during the last campaign “without ever
considering that something bad may happen.” He also said he disputes the idea that the council
inherited a financial situation worse than was anticipated.
Krenzel also took issue with the proposed capital budget, which totals just over $2 million, of which
$1.84 million will go to debt service. Krenzel noted that no specific capital improvements were
proposed.
“Aren’t we going to pave any streets this year?” he asked, explaining that the road projects currently in
progress were funded in previous projects.
The mayor said the budget relies too heavily on one-shot revenues, such as the anticipated sale of the
former Lincoln School, which will be publicly auctioned on April 17.
“It is the same Democrat philosophy: Budgets are planned from Election Day to Election Day,” Krenzel
said.
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