Verona Town Council Introduces 2012 Budget

Despite efforts to come in under budget this year, unexpected costs stemming from both natural disasters and economic issues left a half-million dollar hole in the Verona Township budget, officials said Monday night.

The $21-million budget is essentially the same as last year, officials said at the council meeting, but damages and cleanup from Hurricane Irene and the October snowstorm have left the gap and will cause a tax increase for township residents unless the township receives funding from FEMA.

Mayor Frank Sapienza said he is currently working to obtain FEMA money, but has not been able to procure a figure as of yet. He has vowed to “stay on top of it.” 

Secondly, the decrease in assessed property values leaves the town raising taxes to cover the loss in revenue.

According to Deputy Mayor Bob Manley, the municipal budget is up 3.8% with the municipal tax rate for residents at .744%, up from .69% last year. This percentage equates to an increase of approximately $80 for the average taxpayer, according to councilman Jay Sniatkowski. The average Verona home is assessed at $400,000.

Even with the increase, Township Manager Joe Martin seemed satisfied with the budget he presented. 

“The budget is reasoned and reasonable,” he said. “It protects the interests of Verona’s citizens.”

Councilman Jay Sniatkowski, however, expressed concern. “We need to work to get as close to flat as we can.”

The rest of the council members agreed.

“It’s a good start,” said Manley. “But I agree with Jay. I think we can do a little better. We can get a little more creative.”

Councilman Michael Nochimson added, “I think creative strategies are the way to bridge the gap and save money.”

Councilman Kevin Ryan suggested revisiting costs associated with overtime.

"Overtime costs jumped out at me,” Ryan said. “Maybe we can look at that and do a little trimming.

“Planned overtime is part of good management,” Martin countered.

Martin asserted the proposed budget reflected the council members’ commitment to non-tax revenue, pointing out the amount of the budget raised by taxes is $15,363,348, which accounts for 69% of the budget, a figure Martin emphasized was low.

In his presentation, Martin explained the components of the budget, the major drivers of the budget and how the taxes collected by the town are spread among various entities.

Pension costs, health benefits, state aid and storm costs are all budget drivers, he said, while pointing out of all the tax revenues collected by the municipality the town receives a quarter while the board of education consumes 55% and the county takes 20%.

The town uses a large portion of that 25% to finance the operating budget, which covers expenses like salaries, with the remainder used for the capital budget, which pays for roads, fields and improvements.

“A majority of our budget goes to the salaries of the men and women who run our town,” Martin said, adding, “You do not contain the cost of government by turning off the Xerox machine or reducing the number of pencils you buy. You do it by head count.”

Martin also pointed to the PILOT (payment in lieu of taxes) money the town receives from the Hilltop development as an important means of generating revenue for the municipality without raising the property taxes of residents. He noted the town receives 95% of PILOT money, with 5% going to the county.

“The Hilltop is an important revenue stream going forward,” he said.

Other proposed non-property tax revenue includes recreation fees, construction fees and tower lease.

“Tonight is an introduction,” said Martin. “The discussion will continue.”

The public hearing for the budget will be on May 7, 2012 with possible adoption on that date as well.

Prior to the meeting, Sapienza took a moment to recognize members of Verona’s Girl Scout troops on the 100th anniversary of the organization.

Representatives from the group filled council chambers and were recognized with a short celebration by the council.