Municipal Budget Calls for $49 Hike for Average Home

By unanimous vote, the Parsippany-Troy Hills Township Council approved the introduction of Mayor James Barberio's $68,993,303 municipal budget for 2012.

The vote came at Tuesday night's council meeting at .

A public hearing and final vote are scheduled for June 19 at 7 p.m. at Town Hall, prior to the scheduled Town Council session.

The mayor told those in attendance that the budget is a "lean" one that comes in at 0.5 percent—$298,205—lower than the 2011 plan.

The budget anticipates general revenues of $18,289,581, a drop of 5.2 percent from the previous year.

Also down is the township's ratable base. For 2012, it stands at $7,259,404,453, a decrease of 1.1 percent from 2011. 

The plan includes a 1.8 percent tax levy increase of $700,000 and a tax rate hike of 2.9 percent, which would amount to $49 more for the average assessed home of $309,000.

Barberio, prior to the vote, announced that all "white-collar" town employees—about half of the municipal workforce—will receive a 2 percent pay raise. He said that he allowed the increases because salaries at Town Hall have been frozen since 2009.

Additionally, he cited merit increases "for a few employess who have gone above and beyond, have had significant accomplishments or achievements and/or have taken on additional responsibilities due to a reduced workforce."

The  will see a little new blood. The budget provides for the hiring of four new officers, a part-time parking enforcement special officer and a part-time DARE instructor. The mayor said the new officers will not increase the force in size; they merely replace 12 officers who retired in the past two years.

The mayor announced "significant reductions" helped stabilize the spending plan, including:

• A $250,000 reduction in property and casualty insurance by morving to the
• $200,000 savings in public works expenditures because of the mild winter
• An expected $145,000 cut in electricity and heating costs due to lower energy prices in general and the township's participation in the New Jersey Sustainable Energy Joint Meeting aggregate purchasing group.

Balancing the decreases, he said, are "significant increases in appropriations, including:

• $800,000 in employee medical benefits
• $500,000 in gasoline
• $177,000 in retiree payouts
• $150,000 for costs
• $140,000 for the costs.

"While the increase in medical benefits is large in absolute dollars, it is the lowerst percentage increase in a number of years," Barberio explained. "Also, the prescription benefit renewal came in at a zero percent increase. 

"Health improvements are also evidenced by lower workers' comp costs and medical claims in the first quarter of this year. I believe these are the result on engaging an onsite, one-on-one wellness coach [for employees]."

He added that hurricane emergency spending actually cost the township more than $750,000 in overtime, supplies and equipment, repairs and disposal feels at the trash transfer station.

"We are expecting some FEMA reimbursement, however, this cannot be anticipated as revenue in the 2012 budget," he said.

Those expenditures, along with , are being spread out over five budgets to lessen the fiscal impact, Barberio explained.

As to employee costs, the mayor said attrition has helped in keeping them as low as possible, but he noted that the workforce is "as lean as it can be without services suffering."

"We will continue to scrutinize any new hires," he said. "In particular, we are trying wherever possible to turn full-time positions into part-time positions, thereby realizing sizable savings in benefits."

The mayor attributed the million-dollar decrease in revenues to a reduction in court fines (a loss of $260,000), the loss of tax-exempt status for the Brookside Senior Center (costing $145,000) and anticipation that host community fees at the trash transfer station will drop by $100,000.

He did not some positive revenue trends, however. He noted that the township generated a $3 million surplus. Hotel tax revenues were boosted by $200,000, of 12 percent. Ambulance billings are up nearly $200,000 due to the addition of a second ambulance. And state aid, now level, may be restored to the 2009 level.

Barberio also anticipates receiving payments from in 2012 or 2013 and expect employee health care contributions to rise over the next three years. He added that the should help cut garbage disposal cuts.

"I look forward to working with the council to continue to bring positive changes to the taxpayers of Parsippany and improve quality of life for our residents and improve the economic vitality of the township," he said.