Point Boro GOP Says They're Not Using Too Much Surplus
Republican council members defend use of most of surplus to avoid higher tax increase
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The veteran Republican members of Point Borough Council say they have left enough money in surplus for next year and have adopted a sound budget.
Councilmembers Bob Sabosik and Toni DePaola are refuting Democratic Councilmember Chris Leitner's opinion that too much of the surplus was used in the municipal budget adopted on Tuesday night, which may lead to a higher than necessary tax increase next year.
"We went over this budget with a fine tooth comb," DePaola said. "It's a sound budget. And I believe the town is left with enough surplus. That comes from tax dollars and the best way to use it is to give it back to the people. It seems silly to raise taxes even more when we're sitting on that money."
Sabosik said the new budget uses $1.2 million out of a total surplus of $1.364 million, which leaves $164,000.
Sabosik and DePaola both said that auditors from Hutchins, Farrell, Meyer & Allison, the new municipal auditor, said the town can anticipate generating about $1 million in surplus next year, based on expectations that the current tax rate of 96.7 percent will remain stable or even improve.
Leitner was the only no vote against the budget at the meeting on Tuesday night, when there was almost no discussion of the budget and no questions from any residents. The special budget meeting at Borough Hall lasted barely 20 minutes. Councilman John Wisniewski was absent.
Sabosik and DePaola said in separate telepone interviews on Thursday that they are confident there will be enough revenue generated next year to avert the need for a tax increase any higher than what would be needed otherwise.
Sabosik said, "The surplus is from money left over from the previous year. It should be used to help lower the tax rate. I disagree with Councilman Leitner's opinion that we used too much out of surplus. It's taxpayers' money. It should not be hoarded.
"I firmly believe that this is a conservative budget to keep taxes down as much as possible for our residents," Sabosik said. "I'm sorry Mr. Leitner disagrees."
Municipal surplus can also serve as a savings account to help pay for emergencies. When asked if the Borough will have enough surplus to cover an emergency, Sabosik said he believes it will, but that the council can also vote for an emergency appropriation or bond issue if it needs more funds.
"There are other ways to do it," he said.
When asked about how the town will cover costs for emergencies, such as a winter with heavy snowfalls, Sabosik said costs to handle plowing for a winter emergency would be mostly reimbursed by Federal Emergency Management Agency (FEMA) funds.
DePaola noted that unlike last year, this year the budget does not use school-deferred taxes, which meant that the Borough made temporary use of school tax revenue before it had to pay it to the school district. The town collects taxes for the school district and Ocean County, as well as for the town.
"Last year, we had to use school-deferred taxes to keep taxes lower. But this year we had surplus we were able to use," she said.
For example, after the tough winter of December 2010 into 2011, FEMA reimbursed about $86,000 to the Borough, he said.
The budget just adopted calls for the municipal tax bill on a home assessed at $300,000, which is the average Borough assessment for a home, is increasing from $1,146 to $1,212. The total municipal budget is decreasing from $18.4 million to $18.3 million.
The amount to be raised by local taxes is increasing from $12.5 million to nearly $13.2 million.That amount is only for municipal taxes and does not includes taxes for the local school district or for Ocean County government.
The Borough's tax collection rate has increased from 95.50 percent to 96.74 percent.
The budget will increase the municipal tax rate by 2.22 cents, compared to 2.16 cents as called for in the budget when it was introduced on July 2.
Leitner said after the meeting that he voted no because he is concerned about the majority on council using about $1.2 million of a total of about $1.3 million in surplus. He said the problem with using nearly all of the surplus is that if the Borough generates less surplus than expected next year, it will likely mean a larger tax increase.
"If you come up short the following year, then you have to raise taxes more than you would have to otherwise," Leitner said.
Regarding other aspects of the Borough's financial situation, DePaola said the council continues to look for ways to save money, including working with the local unions.
"The unions have been very forthcoming, taking smaller raises and paying more into their medical and pension benefits," DePaola said.
For example, she said, the local police union has agreed to a two percent raise over the next two years, along with revised starting salaries and salary increase steps. She said some details have to be finalized with the new, pending police contract before she can discuss the remainder of the terms.
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Da Poppa
8:24 am on Saturday, August 4, 2012
A conservative budget would cut spending, which in turn leads to lower taxes. It wouldn't borrow money from any source, including the surplus, to cover increases in spending. Neither political party, at the federal, state, county or local level understand the principle of spending cuts. Government is too big because it has too many regulations that need government employees to enforce those regulations. Cut regulations, cut government employees, and give money back to the private sector I the form of tax and regulatory fee cuts. Simple, but beyond the scope of comprehension of most politicians.
And in the Boro, the land of cronyism, start laying off and cutting benefits to these do-nothing employees, hired only because they know someone. It's time people in this town that are NOT connected to the GOP or Dem cabal start getting involved.
somebody
11:10 am on Saturday, August 4, 2012
Correct, it is happening in all the NJ towns....cronyism at its best. All their friends covering for each other. Making tons of money for their own family and friends. Then after they use and abuse all the tax paying residents of this state. They eventually move to Florida or the Carolina's with all their big money pensions that they do not even put back in to the state they have ripping off for all the years. The funniest thing ever is when I hear all these state abusers say they can't afford to stay in NJ. How do you think the rest of us feel? We are struggling to keep above water. As more average resident leave this state and only the rich are left to pay for all is when you will see drastic changes. It has already started with Governor Christie.
bayboat
9:38 am on Saturday, August 4, 2012
Leitner is wrong, the Mayor, et al are right!
Laura
12:32 pm on Saturday, August 4, 2012
A conservative budget wouldn't include adding over $700,000 to our long term debt for another fire vehicle. We haven't even recovered from Rogers' underfunding of the water/sewer department.
Have heard they will be hiring 2 new employees for the Dpw.
Da Poppa
12:46 pm on Saturday, August 4, 2012
DPW? That's funny, you would expect people working for the department of public works to WORK in PUBLIC. Yet they hardly work at all. The police ... How many sargents do we need in town making $100K+? demote, cut salaries, cut benefits, hire more cops. It's simple but the politicians, GOP or Dem can't do it. Poltics are run by the three "isms" ... Favoritism, nepotism and cronyism ...
Laura, I appreciate that you point out that the GOP has given away $700K for a new fire engine, and the mess that Rogers left this town in, but put the Dems in power and you would have similar if not the same things happening. Favoritism, nepotism, cronyism ...
Laura
1:23 pm on Saturday, August 4, 2012
The dems saved over $500,000 last year. The repubs had nothing to do with it. The dems haven't been in control for 30 years as the repubs have. They haven't learned the corruption aspect yet. If they had 10 years of control, I would expect them to be the same.
somebody
2:14 pm on Saturday, August 4, 2012
I have to agree with Da Poppa. It is not going to change. The towns and the politicians are driven by favoritism, nepotism and cronyism. Majority of the towns are filled with families and friends that are living high off the hog on the backs of ordinary hard working residents. They all know about corruption and even if you have a few honest local politicians they will either soon turn or get pounced on if they even try to make a few changes.
Spooner
3:20 pm on Saturday, August 4, 2012
...give it up. . .you've reduced yourself to a party of uno. You thought that it was exciting being obsessed with Susan Rogers...who wanted to have you arrested with all your remarks you were making about her and the Mayor's wife on the APP blog in 2009. . .Meanwhile she's got a job. . .so where's yours'. . .Calling Fred Potter(IBT) and Chris Leitner(their lawyer). . .why haven't yous taken care of Laura Beeden?
Oh...and the guy who should be getting credit for saving the town $500,000 which was slated to Fred Potters union, who was pushing for in house garbage collection with his Democrats on Council, was Republican Mitch Remig, who also got a sweetheart job with the Sheriff's Dept. . .So again: where's your job for the hatchet work you did. . .or just how were you rewarded...with that dog business you run??
Laura
9:55 am on Monday, August 6, 2012
Am I allowed to say Spooner is in my opinion a maroon?
I don't want a county or state job. That says more about Rogers than me. Rogers wanted to have anyone who opposed her arrested.
THE DEMOCRATS COULDN'T HAVE GIVEN ANYTHING TO ANYONE WITHOUT A REPUBLICAN VOTING TO APPROVE IT.
What the heck did Remig have to do with anything?
Maybe you are the one getting something for all your diatribes. How would be know?
Spooner
10:54 am on Monday, August 6, 2012
...as usual your Remig opinion is grounded in horse manure. . .and your comments about quid pro quo demonstrates political ignorance...for instance: the recent appointment of PPB asst. clerk...being related to Councilwoman Christine Tooker's boyfriend. . .What fantasy world are you living in!
http://pointpleasant.patch.com/articles/point-boro-gop-blocks-bond-ordinance-to-fund-robo-cans
Victor
6:23 pm on Saturday, August 4, 2012
I can't believe that I just read the town wants to hire 2 more DPW workers. What part of cutting back don't they understand? I thought some of the people on the council were business owners? How much would any one like to bet that these 2 are related or buddies of someone who works in town? I have a small business and have had to cut back and lay off employees just to keep it floating. We have learned how to work around it. Everyone else has picked up the slack, the work is getting done and we are currently not in need of having to hire anyone else. My guess is the council is just afraid of the unions and they don't have the nerve to fight them.
Tom Szymanski
10:37 pm on Saturday, August 4, 2012
Mr. Leitner would rather raise $1.2 million more in taxes this year, right now, than spend un-utilized funds, by trying to say, not spending it MIGHT prevent a tax increase next year? Mr Leitner is an expert at speculation. I agree with Councilman Sabosik whole-heartedly, why should the government hoard the taxpayers' money? Oh, and in case no one noticed-THIS BUDGET IS $200,000 LESS THAN LAST YEAR'S! Some people are struggling to make ends meet, some people have no problem taking more, more, more. I believe Mr. Jon Fogerty said it best. Skip to 1:38
http://www.youtube.com/watch?v=ec0XKhAHR5I
Laura
9:59 am on Monday, August 6, 2012
Hey, Tom,
Maybe Leitner should try to give the residents a 0% tax increase by underfunding the water/sewer department by $500,000. That actually happened 2 years ago. Didn't they also borrow from the School Taxes at the same time?
$200,000 less - hmm We are saving $500,000/year. So we are spending most of the savings?
Tom Szymanski
11:05 am on Monday, August 6, 2012
It appears this year we are spending most of those savings, no argument there. Thank goodness, though the Republicans, last year refused to vote on bonding to purchase $800k for garbage trucks in order to hand garbage collection over to Brick. Remember when Mr. Leitner and Goss said, "When the trash is piling up in the streets, I hope the residents remember your vote?" Well none of those fear tactics came to fruition. The Republicans saw the light of day and saved this town $2.5 million dollars. I believe it was Councilman Sabosik who actually didand his research pointed out private contractors were coming in at an average rate of 18% lower state-wide than in-house/government run trash pick-up. I'm glad nobody folded and voted with the Democrats to merge with the soon-to-be defunct Brick DPW.
community watchdog
12:25 am on Sunday, August 5, 2012
Tom Szymanski,
Great Post that really SAYS IT ALL !!!! Awesome citation to the Creedence Clearwater Revival tune too! .....
"Some folks are born....silver spoon in hand Lord, then to help themselves......But when the tax man come through the door.....Lord I'm lookin' like a rummage sale!!!......It ain't me, it ain't me....I ain't no fortunate one y'all....."
"And when you ask them how much (more) should we give....who they only answer, MORE, MORE, MORE....."
Put that in your pipe and smoke it, Laura Beeden.....LMAO!
somebody
12:55 am on Sunday, August 5, 2012
They are all taking advantage of the hardworking residents. What a bunch a bull from every single one of them.
Alex Viecelli
12:49 am on Monday, August 6, 2012
People need tax relief now. Electric has gone up. Gas and tolls are up. Cost of business is way up. Family's have less money. I'm sure next years budget will have new challenges to deal with. I can remember not to long ago the 10 and 11% tax increases. Thank God the governor has a cap in place now. Our elected officials, and our candidates running for office need to get out and talk to our residents and businesses and see for themselves they are not in good shape.
Laura
11:28 am on Monday, August 6, 2012
How exactly did the Republicans see the light of day? If the Republicans were in control that year, they would have never put it out there that they were looking for other options. That's what, ultimately, saved us money. Rogers, in her last year, was having talks with Brick about doing our garbage pick up. Toni stated she had been at those talks. The Republicans were in charge of the garbage contracts for almost 30 years. Did the contract price ever go down when they were in charge?
Stop spinning and try the truth. Mitch Remig is now suckling off the taxpayers. How is he any different or better than the others you are railing against?
If the Democrats had been in control for 30 years in the county, they would be just as corrupt.
ROGERS UNDERFUNDED THE WATER/SEWER DEPARTMENT TO GIVE A 0% TAX INCREASE. How did that work for you? Another water/sewer surcharge to make it up. I do hope they are looking at charges against our former CFO. Oh, wait, the Republicans control the county, so that won't happen.
Spooner
11:55 am on Monday, August 6, 2012
In 2009 you supported the Democratic Council candidates Viecelli & Potter. . .In 2010, again you supported the Democratic slate of Schroeder, Goss, & Rusk. . .now it's back to being Miss Independent. . .What BS are you trying to peddle here!
...and speaking about Brick garbage: the Republicans were also talking about shared services with the Beach. . .in which you went over there to the Beach. . .and shot off your big mouth against!
Freetobeyouandme
4:00 pm on Monday, August 6, 2012
It would help to step back for a minute and remember that increased tax collection stated in the article which were a large part of the surplus were for 2011 compared to 2010. Are 2011/2012 collections on pace with the improved rate? The other major factor was the reconstruction of the town's financial records. Neither of these factors directly relate to expense control. I think Mr Leitner's concern that the remaining surplus could be quickly depleted is valid. If the rate of collection has deteriorated, the town and its credit rating will again be vulnerable. Relying on surplus and borrowing deferred school taxes are no substitution for aggressive spending control. A line by line comparison of the last 3 budgets would be very informative.