City Introduces Transitional Year Fiscal Budget

City Council approved the introduction of the 2010 transitional year financial budget at Wednesday night's council meeting. 

The budget is transitional because the city is moving to a calendar fiscal year starting January, 2011.

At the beginning of Wednesday night's meeting, Mayor Dawn Zimmer addressed the council about the budget, explaining why the $10 million surplus that is included in the budget, is needed. 

The introduced budget, which is roughly $52 million, includes a 5 percent tax break. The tax cut, said part time Finance Director Nick Trasente, who has left to be the Chief Financial Officer in Middletown Township, was reached "through efficiencies."

"It prepares us for the rainy days ahead, ensures cash flow, helps improve our bond rating, and allows us to address our desperate infrastructure needs," Zimmer said. 

The surplus is need for four reasons, Zimmer continued, "building a rainy day fund, maintaining an adequate cash flow without borrowing, improving our bond rating and providing for an ability to address our desperate infrastructure needs."

For all those reasons, Zimmer concluded, "maintaining a proper surplus will repay taxpayers many times over because it will reduce the cost of running the City every year."

Councilwoman Beth Mason recently sent out multiple press releases, demanding the city to return the surplus to tax payers. 

According to Trasente, grants are not yet included in the budget, he said. He also said that this budget fully funds the tax maps.

"The administration has really focused on keeping the taxes as low as possible," Trasente said. 

"The budget we present to you today illustrates that we are addressing our fiscal crisis, but our tax crisis remains," Zimmer told the council Wednesday night. "We have severely high taxes that must continue to be reduced on a sustainable long-term basis.  

Councilwoman Mason said she voted against the resolution to introduce the budget, because she had received budget-related documents during the meeting, and therefore said she did not know what she was voting on. Council members Nino Giacchi, Michael Russo and Theresa Castellano also voted no. 

Passing this vote does not mean the budget was adopted. The city will be hosting two budget workshops—Sept. 13 and Sept. 22 from 6 to 10 p.m.—where directors will introduce their individual departmental budgets and city council will have a chance to ask questions and make cuts before finally voting to adopt the budget.