Borough Introduces $15.7M Budget

Despite increases to the operating budget and total tax levy, the average Franklin Lakes homeowner will save $58 on the municipal portion of the 2011 tax bill. The reason: The borough-wide property tax reassessment that saw an overall decline in housing values by $250,000.  

The proposed $15.7 million municipal budget reflects a 1.2 percent increase in spending over last year. The primary increases are for pension costs, which are 16.7 percent higher for 2011, and health insurance costs, which have increased by 14 percent. 

The $10.6 million tax levy reflects a 1.9 percent increase, about $360,000 under the state-mandated 2 percent tax cap.

"The increases are all contractual salary and benefits, which were offset by cost-savings," Mayor Frank Bivona said Tuesday night when the 2011 budget was introduced at the council's work session. 

Bivona noted that the borough met its financial goals for 2010, which included a reduction in debt and stabilization of the budget surplus. The borough's debt load went from $16.7 million in 2008 to $15.4 million at the end of last year, and could be reduced below $14 million if expected funds come due, the mayor said. The borough's surplus is also growing, with $2.3 million in the account, an increase of $50,000 from the previous year. 

The budget represents a balance between revenues and expenses, without dipping into the surplus. Doing so ensures the borough will be able to meet the 2 percent budget cap for many years to come, Bivona noted. 

"What you do today is going to affect us down the road," he told the council. 

A full budget hearing and adoption is planned for April 20. The complete budget and summary are attached to this article. Here's a closer look at the numbers and what they mean to you: 

2011

2010

$2,676.89