Scotch Plains Budget Set to Be Adopted Tonight

After months of tense discussions and negotiations, the Scotch Plains’ municipal budget will finally be voted on tonight during the council's regular meeting at 8pm.

As required by state law, a public hearing will be held prior to the council’s expected adoption of the $25 million spending plan.

While Mayor Nancy Malool has previously stated that she doesn’t anticipate there being any wiggle room to make changes, the township can technically amend the budget tonight if a constructive suggestion is made during the public hearing.

Some aspects of the budget are set in stone, though.

The town’s new sewer utility, which was approved earlier this month, cannot be reversed.

Because the town was hit this year with a $521,000, or 43 percent, increase in its sewer fee from the Rahway Valley Sewer Authority, it decided the best way to make up the difference for these costs and stay under the state’s 4 percent tax levy cap would be to issue residents a separate sewer bill that charges them based on their individual usage.

Up until now, residents have been paying a sewer fee that was based on their property assessments and that showed up in their annual property taxes.

Residents will be charged a flat rate of $250 this year, but in the years to come the bill will reflect their usage.

All county and state buildings, along with the Board of Education, charitable facilities, and houses of worship, will also be charged for the first time.

The township has also cut costs this year by reducing its operating expenditures and through the layoffs of two full-time municipal employees and three part-time employees. Three other full-time employees had their hours reduced to part-time.

Aside from the increase in sewer fees from the RVSA, the township says it has faced several other challenges this year as well, including a $73,000 reduction in state aid; a $214,000 decrease in property tax payments; a 9 percent increase in health insurance costs; and a $380,000 decrease in interest income.

In total, Scotch Plains residents can expect a 12 percent increase in municipal taxes this year.

To view the mayor’s presentation of the budget, or to download the full 2009 budget, go here.