Prudent Spending and Conservative Budgets Put Bernards Township in Good Fiscal Shape for 2010.

Early this month, the New Jersey Department of Community Affairs announced that it would withhold financial aid payments to 465 of New Jersey's 566 municipalities.With a projected deficit estimated at $1 billion, this is just one of the steps the state government is taking to close the budget gap.

"It's really a good news, bad news story for us," stated Bruce McArthur, Bernards Township CFO and Town Administrator. "The good news is, there is no impact, the bad news is, the state took that money from us a while ago." Earlier this year, the state targeted low tax, high per capita income towns for the first reductions in aid.

Bernards Township is one of the few New Jersey municipalities to cut taxes. While on average, property taxes in New Jersey have risen 29%, Bernards Township has decreased its property taxes by 5% over the last four years. Mr. McArthur explained that by following a conservative, pay-as-you-go approach to budgeting, spending and investing, the township has been able to manage through a fiscally challenging period. 

Township income is primarily derived from property taxes and non-tax revenues. A small percentage of the $34 million budget comes from state aid in the form of Energy Receipts Tax distributions.  While the state has not publicly stated that the municipalities are in jeopardy of losing this income, with the huge state budget deficit looming for June 1, nothing is certain.

Meanwhile, states Mr. McArthur, Bernards Township manages its expenditures prudently. "We have consistently pushed expenditures lower and lower over the last few years. We have a long standing focus on efficiencies (energy and all efficiencies), and we give purchases that create efficiencies higher priority."

An example of this is the current holiday season. The beautiful holiday decorations adorning Bernards Township are provided through donations or reused from previous years.

The large spruce tree sitting of the village green in downtown Basking Ridge was donated to the township and decorated by the all volunteer Basking Ridge Fire and First Aid Company with high efficiency, energy saving lights. The Department of PublicWorks hung artificial wreaths and seasonal banners on lampposts and flag posts; these were used in the past and will be put back in storage for future use.

The fiscal year of 2009 ends Dec. 31. Finances are in good shape as officials mindfully pay down debt (no new debt has been issued since 1991 except for Open Space Tax funded preservation purposes) and carefully manage reserves. They expect no deficit for 2009 and will ring in the New Year on firm financial ground.

With the 250th Anniversary of Bernards Township Charter pending for 2010, the Township looks forward to an exciting year with lots of community involvement and participation. For information on planned activities thus far visit the Bernards Township website at http://www.bernards.org/250th_Anniversary.