BY VINCENT TODARO
Staff Writer

SPOTSWOOD - Municipal taxes could rise by $153 on the average home if the borough's budget for 2006 goes without aid or is not cut further by borough officials.

The Borough Council finalized the municipal budget last week. Though it includes a tax rate hike of 6 cents per $100 of assessed valuation, that could reduced to as little as 2.7 cents if Spotswood receives the full $250,000 in extraordinary aid it is seeking from the state.

The municipal tax is just one part of a homeowner's property tax bill, which also includes school and county taxes. School taxes will rise by $252 on the average Spotswood home for the next school year.

Councilman Curtis Stollen said the council has its fingers crossed that the full amount of extraordinary aid will come in, but indications are that it will not. The borough auditor has told him the state is overwhelmed with aid requests from municipalities and that there are many other towns in worse shape than Spotswood, Stollen said. Also, the state Department of Community Affairs is not taking into account the effect of school taxes in various towns, something that has been part of Spotswood's argument.

The state is expected to provide the aid figures by early July.

The total municipal budget for

2006 stands at roughly $7.9 million, up $580,000, or 8 percent, from last year's roughly $7.3 million budget.

Stollen said $210,000 of that increase is artificial, though, because the money is for the borough's rescue squad, a new ambulance service. He said it is believed the town will recoup the money from insurance companies covering those who require the squad's services.

The amount to be raised by taxes has increased from about $4 million last year to roughly $4.5 million.

If Spotswood does receive the full $250,000 in extraordinary aid, the 2.7-cent hike would amount to about a $68 increase on the average borough home, which is assessed at $251,000.

If the borough does not receives the full aid amount, officials will look into further budget cuts, Stollen said. A tax point in Spotswood is equal to about $74,000.

"If we don't get the aid, we'll cut the budget in different areas to make that up," Stollen said.

Contractual obligations are the main factor in driving up the budget, especially with police salaries and wages increasing by about $142,000, he said. In addition, pension costs are up $80,000, insurance by $22,000, and energy by $35,000.

Stollen said he does not foresee any staff reductions.

"We're pretty lean right now," he said.