Kinnelon Council Adopts 2011 Municipal Budget

The adopted its $12.2 million 2011 budget during a regular council meeting Thursday, but not before Mayor Bob Collins expressed his concerns about the inclusion of $50,000 for the potential hiring of a business administrator and the challenges that could face the borough in 2012 as a result of this year's budget.

The budget comes with a tax levy of $7,813,439.71, in addition to a separate line item for library taxes of $771,503- an increase of 3.98 percent over last year's tax levy. Councilman Stephen Cobell, who serves as the council liaison to the finance committe, said that from 2009 to 2010, the tax levy increase was 5.38 percent, meaning this year's increase is lower than the previous year's. The budget is also below the state-mandated 2 percent cap.

During the public hearing on the budget, former Mayor Glenn Sisco asked the council if taxes needed to be raised. Cobell said the committee cut as much as they could from the budget, but that taxes would have to increase by about $84 on an average assessed home of $446,000. But Collins argued the taxes would be increased further with the inclusion of the library taxes, which were mandated to be budgeted as a separate line item last year.

"We couldn't cut anymore than where we've cut," Cobell said.

"If you have to raise the taxes, you have to raise the taxes," Sisco said. "I'm looking for justification of that."

While the council was working on the budget, Cobell explained that the borough was faced with an increase of nearly 40 percent in health insurance premium costs this year, as well as increases in retirement contributions for police and fire personnel as well as other borough employees. The borough is also unsure of the costs it will face for retirement contributions for a group of employees that have not yet met with their bargaining union and  negotiated terms, but Cobell said there is a line item in the 2011 budget to absorb those costs.

Sisco also questioned the inclusion of the $50,000 for the hiring of a  business administrator and cautioned the council that the borough has not had much success with business administrators in the past.

"I just hope everybody's ready for that because we've had some experience with that and it was not so good," he said.

But Councilman Jim Freda said he feels that the borough needs someone who can be working for the borough at all times, unlike councilmembers who have jobs outside of the council. He also said that he feels hiring a business administrator would help the borough to have a person who could write grant applications and find more ways the borough could save money.

"We need someone that is not a volunteer to be running this town," Freda said. "I spend a lot of time on the Borough of Kinnelon, but I still am upset that I'm not making a difference in the Borough of Kinnelon."

Collins argued that Freda is making a difference with his volunteer efforts with the recreation program and serving on the council, but said that he would rather see the position contracted out, or see the borough hire a person for a hybrid position that could include business administrator and Chief Financial Officer duties.

"We should be looking to gain efficiencies," he said. "I don't think we should be expanding government."

Given the potential challenges that could face the borough in 2012 with rising insurance and pension costs, Collins said he cannot support the budget, although he appreciates the hard work the finance committee has done.

"There may be some things outside our control," he said.

Collins referenced the way others perceive the borough and said it is up to the council to maintain Kinnelon's reputation. He said he has often heard people say, "'You guys have a great town and it's a great place to live.'"

"I think we're all fighting to keep it that way," he said.

The mayor also referenced shared services, which Sisco brought up in his remarks and said he would like to see more of. While Collins said the borough does participate in a few shared services with other boroughs, few of them help Kinnelon gain revenue, but that he would like the borough to look into that more.