Red Bank Introduces Budget

Continuing the refrain of looking for health insurance alternatives,  introduced its 2012 budget Wednesday night. It includes a tax hike and a $841,000 increase over last year's budget.

The borough's total budget is $20.773, which includes a tax levy of $11.621 million. More than half of the budget increase the borough was faced with this year was the result of skyrocketing health care costs. Of the total budget increase, $463,000 came from health insurance premium increases alone.

Mayor Pat Menna said despite finalizing the proposed budget, Red Bank is not content with maintaining it as is, especially with a 22-percent health insurance increase from last year to this year.

"We are looking for alternatives," he said during the meeting. "But, the word alternative means we're going to have to renegotiate (with insurance providers and employees) and limit entitlements."

The municipal tax rate is 53.2 cents per $100 of assessed property value, a 2.3 cent increase over last year's tax rate. The owner of a house assessed at $401,000 - Red Bank's average home assessment - will see a $94 tax increase on this year's bill when compared to last.

Red Bank belongs to a health insurance fund along with several other municipalities. The town joint the joint fund because it offered reduced health care costs. . Calling the 22-percent increase "intolerable," Councilman Mike DuPont said the borough will explore other options, including joining the state health fund, should that present a decrease in costs.

Despite the rising budget, Red Bank has been able to submit budgets under the State-mandated 2 percent cap for four years in a row thanks to cuts to several Red Bank departments.

"We're doing the best we can," DuPont said. "We're still making cuts and changes."