As the Mayor of Bound Brook, I am writing to represent the dire need for property tax reform that is needed as well as the need to rationally and equitably deal with our state budget crisis. This year, the Bound Brook Borough Council is considering a proposed .35-cent tax increase. This potential increase in a word is hideous. Since 2001, taxes have increased .81 basis points. Since 2001, the municipal portion of Borough taxes has increased 130 percent. If this year's proposed increase is added, on that total, the increase in municipal taxes will be 193 percent since 2001. I can personally attest that like the State of New Jersey, we are in a very difficult budget situation. As you know, Bound Brook has had a propensity for major flooding and has had four major floods in the last 12 years and has suffered tremendously. Our ratable base has been almost flat for at least the last 5 years. The Borough of Bound Brook is still recovering slowly from the devastating effects of the Nor' easter last April. Businesses in the downtown and surrounding areas have been very slow to recover. Bound Brook is also experiencing the statewide downturn in the real estate market and a local manifestation of the larger mortgage crisis, development and construction of the 144 unit age restricted housing near Interstate 287 was completely halted at the end of 2007. Construction was slated to be completed by April of 2008, thus revenues for completion cannot be anticipated until 2010. In addition, negotiations on two other redevelopment projects in the downtown have stalled. Revaluation of all Borough properties will commence in June of 2008 for the 2009 tax year. The Green Brook Flood Control project is moving forward with construction on the Southwest corner of the Borough. The President's Budget included another $10 million for the project. Thus far, $70 million has been spent on the Bound Brook portion of the Green Brook Flood Control Project. The Mayor and Council have made securing the funds for completion the top priority in order to complete the project by 2010. In our 2008 Budget, we have experienced significant increases that are outside of our control and are causing significant stress to our budget. Our PERS and PFRS costs have risen 938% and 736% respectively over the past four years. Our sewerage authority costs have risen 40% in four years and our street lighting costs have increased 35%. Our gasoline costs alone have risen 104% over the past four years. We believe that reducing the budget and sharing services have to be part of an integrated budget strategy aimed at reducing the need for additional property taxes. In 2006, Bound Brook joined the Somerset County Library system and experienced how significantly that move reduced our appropriations obligations to our Library. In that spirit, Bound Brook is aggressively pursuing shared service arrangements with our school system, Somerset County and South Bound Brook. We currently share multiple public works activities with our school system. With Somerset County, we will seek to potentially merge our dispatch operations with the county. With South Bound Brook, we are seeking to enter into agreements that cover extensive public works activities as well as a further agreement on potentially consolidating both court systems into one. Purchasing has been frozen since the beginning of the year and department heads have been asked to operate within a proposed operating expense budget of 6% below their 2007 levels. The Borough has taken numerous steps to reduce costs and control spending in an effort to not rely on extraordinary aid. We must increase ratables in order to reduce our need for extraordinary aid. To that end, we are working aggressively with our potential redevelopers to bring these projects to fruition. Without extraordinary aid, our taxpayers may face the prospect of a .35 cent tax increase that would amount to $549 tax increase on our average home in Bound Brook. In addition, a large number of our homes are occupied by those earning at or below the statewide median income, so we fear that this tax increase will drive them out of their homes. We have followed, with interest, the discussions on the state budget and the Governor's proposed plan for fiscal austerity, debt restructuring and applaud his efforts in taking on this task. We need extraordinary aid to safeguard our taxpayers' ability to literally afford their homes. Without assistance, our town, our taxpayers, and our future efforts to be more self sufficient will suffer tremendously. Carey Pilato, Mayor
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