Keyport cites state aid cuts for 12.8-cent tax increase Council calls for borough hiring freeze BY DENNIS JORDAN Correspondent KEYPORT - The Keyport Borough Council unveiled its 2008 budget, which calls for a tax rate increase of 12.8 cents per $100 of assessed valuation due, according to officials, to the elimination of state aid depended on in previous years. Atotal of $468,000 in municipal tax relief and extraordinary aid was cut from the state's financial aid package, leaving Keyport officials to find a way to make the numbers work. "Keyport has been hit very hard," Mayor Robert Bergen said last week. "Every year is a tough year, but this is the toughest year since I've been involved in municipal government. "This budget represents the lowest possible amount of spending that Keyport can handle," Borough Administrator Peter Valesi said. Valesi referred to the 2008 budget as a "slash and burn budget." The cuts in aid are part of the state's plan to increase savings, but Bergen was skeptical. "With all due respect to the governor and the Legislature, I don't think the savings will be as great as the state believes," Bergen said. The budget calls for a 12.8-cent increase per $100 of assessed property value in the tax rate to help offset the lack of state funds. However, with the state's cuts leaving a deficit of 14.18 cents in the tax rate, the borough still faces economic hardship. An increase of nearly $150,000 from 2007 to 2008 in the pension costs of police, fire and public employees also contributed to the borough's economic situation and the need for higher taxes. The increase in taxes was a step that the Borough Council was hesitant to approve. "Aside from laying off people, I don't see any other way," Councilman Joseph Sheridan said. Among the borough departments hit the hardest by the budget is the police department. The new budget will reduce funds available for police overtime wages and limit the money payable to special police officers hired in the summer. With Police Chief Thomas Mitchell in attendance at the Borough Council meeting, several council members alluded to the department's problems. "We have a police chief that says he can't make it on this budget," Councilman and Police CommissionerWilliam Ortman said. "I apologize to the police chief," Sheridan said. "I wish we had more money." When asked by Councilman George Walling about how the police department will cope with the budget, Mitchell said, "Am I satisfied? No. Can I live with it? No. I'd rather not address the council at this time until I know what I'm dealing with." The budget also calls for a salary freeze for public employees, including the mayor and the members of the Borough Council. Councilman John Kovacs said he intends to return some of his salary to the borough to help. "I'm going to turn my last check back into the town," Kovacs said. "We want everybody to tighten their belts, we should start with ourselves." Bergen accused Kovacs of "political grandstanding" and said that a decision like that should be left to the other council members' consciences. The council said they hope for a better year next year, but Valesi didn't share their enthusiasm. "Eventually we're going to have a new waterfront park to take care of," Valesi said, alluding to the upcoming finalization of design plans for the new waterfront park, which is budgeted for $1.5 million. "If 2009 looks anything like 2008, we're going to have more problems."