Tax Bills in Voters' Hands as Council OKs Referendum

Residents will soon decide whether certain municipal services are worth the millions of dollars needed to fund them, as the governing body has authorized a public referendum whose passage is necessary to save Brick jobs and services.

However, rejection at the polls may not save residents money. Instead, property owners may face out-of-pocket costs for services currently provided by the township while also losing many programs run by Brick municipal departments.

"We want you to tell us what you want," council President Brian DeLuca said Tuesday evening, when the governing body unanimously voted to both introduce the 2011 municipal budget as well as place a question on the April 27 ballot that would permit it to raise taxes $8,655,056 above the state-mandated 2 percent spending cap.

If voters reject the additional $8.6 million question, the township will eliminate garbage and recycling collection while also laying off 172 employees from departments throughout the township, including 29 Police Department officers.

"All areas will be hit," DeLuca said, with the likely elimination of many Parks & Recreation programs, as well as senior services.

"If this referendum fails, garbage will be outsourced," DeLuca told the standing-room-only crowd assembled at the Municipal Building.

Officials said the public's viewpoint is paramount. 

"Ultimately, this is a democracy, and maybe it's time the referendum comes to fruition," Councilman Michael Thulen said. Councilwoman Ruthanne Scaturro agreed, saying, "This is the most direct form of democracy you're ever going to find."

Budget Figures, Tax Impact

The $8.6 million up for a vote represents a 12.69 percent increase over the allowable tax levy, as local governments are tasked with operating within a 2 percent spending cap instead of the former 4 percent cap. The $86,574,112 2011 operating budget introduced Tuesday night would be supported by a $68,175,396 tax levy needed to finance the spending plan. 

Should the referendum pass, the owner of a home at the township's median assessment, $250,700, would see a $312 annual tax increase. The owner of a home assessed at $350,000, which includes 80 percent of Brick property owners, would see a $441 annual increase in the municipal portion of their tax bills.

The governing body estimates that the 80 percent of residents assessed at $350,000 or less would actually pay more annually for private haulers to cart away trash and recycling than they would by approving the $8.6 million.

Officials said the issue is one of simple dollars and cents. Mayor Stephen Acropolis said it will cost residents from $400 to $500 annually to pay for private refuse collection. 

"It's a good fiscal decision for you to make," DeLuca said, in reference to a "yes" vote on the referendum.

The fate of the referendum will decide the final budget figures, as $8.6 million may need to be cut before the governing body adopts the 2011 plan.

"In the event the referendum fails, the township will have to amend the budget downward," Administrator Scott Pezarras said.

Rationale Behind Referendum, Going Forward

Pezarras said the township had little choice but to potentially put refuse collection and municipal jobs at risk, saying a loss of revenues, increased expenses and the lowered state spending cap put the township in an $8.6 million hole.

More than $6.7 million was lost from last year's spending plan, with almost $3 million in anticipated surplus not being realized among other revenue losses that total $6,729,606. The township also faces more than $2 million in increased costs, mostly due to contracted wage hikes and insurance increases.

The administrator said there simply was no other way to balance the budget than to put the cost of garbage and recycling collection outside the spending cap. In fact, DeLuca said Pezarras was charged with trying to find a way to make up the $8.6 million without affecting refuse collection and concluded the task was impossible. While some municipal services must be provided under legal mandates, the township does not have a statutory obligation to pick up garbage. 

"There's not enough dollars out there in all the other groups" to make up the $8.6 million while still funding refuse collection, DeLuca said.

Officials stressed that the $8.6 million will not finance any additions to the municipal budget. Instead, it will allow the township to "provide the same level of service" it currently offers.

The mayor, administrator and council spent much of their time Tuesday addressing questions about the referendum and the impact of the April 27 vote. Several residents said they simply cannot afford the tax increase, with officials responding that approving the referendum was actually the cheapest option available to them.

However, Victor Fanelli, a Meadow Point Drive resident, said the governing body was not attuned to the predicament of homeowners who do not fall within the 80 percent assessed at $350,000 or less.

"Don't leave us out of the question," Fanelli said.

An elderly resident told the governing body she would "likely vote no, as I can't afford another penny."

However, the governing body's justifications for the vote convinced at least one skeptical resident. Joseph Lamb, who admitted to sending out "robocalls" to residents in opposition to the council's plans, said, "I'm changing my opinion. I think people should vote yes on the referendum."

Township officials said many residents were not served by such robocalls and "misinformation" spread by neighbors on media forums. 

"If you know the facts, you're not going to be upset," DeLuca said.

While the council president and his colleagues presented the tax impact of the $8.6 million question as a bargain, compared to what could be lost to a "no" vote, they stressed that the public must make its own choice.

"I believe not giving the people the right to vote does a disservice to Brick Township," Acropolis said. 

Council Vice President Dan Toth said, "We, as an elected body, will abide by whatever decision you give us."

The polls will be open from 2 to 9 p.m. April 27, when residents also will be asked to vote on the school district's tax levy as well as candidates for the Board of Education.

The governing body plans a public hearing and final adoption of the municipal budget at a meeting slated for 7 p.m. May 17.