Sparta council looks at reducing surplus to ease taxpayers' burden

Sparta - Council members will spend the next two weeks reviewing the proposed 2006 municipal budget with an eye in trying to reduce the annual surplus left over at the end of the year. Mayor Alish Hambel said council members are intent on paring down the budget surplus, which Sparta, like most towns, factors into the budget to compensate for uncollected taxes or unforeseen expenditures. “The council feels from a policy standpoint, we can afford to do that,” said Hambel. We’re in agreement. We’re definitely cutting back. We’ve discussed doing more with less.” However, Michael Guarino, the township finance director, said Sparta should be cautious about drastically reducing its financial safety net. “There’s always variables,” said Guarino. “It’s a complicated little game we have to play to keep our heads above water.” For the past few years, the township has put aside money ranging from $4.1 million to $5.1 million for this purpose. Of that, Guarino said, the municipality has used anywhere from $3.1 million to $4.2 million to help offset subsequent budgets, but always leaving in reserve around $680,000. Councilman Jerry Murphy said reducing the surplus is always a possibility, but said that “the real crux of the of the budget is yet to come.” The council will meet in open session to iron out a final budget with the township manager for the next two Saturdays, beginning at 8:30 a.m., in the municipal building. Councilman Wayne Ring said fluctuating energy prices, a new agreement with township employees for group medical coverage, and an increase in the cost of workers’ compensation insurance makes it impingent upon the council to ease any added burden that might be placed on taxpayers. “We’ve been fortunate that we’ve operated on a good-sized surplus,” said Ring, who anticipates this year’s municipal budget to fall around $22 million, a slight increase from last year. “We’re looking at all the nickels and dimes because they all add up. It’s our fiscal responsibility to look at everything, but it’s going to take a little longer.” Ring said it’s not the role of the council to “micro-manage.” “A department head is going to try and get whatever they can,” said Ring. “We’d like the township manager to communicate to the department heads that they have to be more responsible when they come in with their proposals.” The mayor also said department heads should be more “responsible” before proposing budgets. “They’re always looking at the worst-case scenario,” said Hambel. “We’re trying to get them to be more realistic and to be fair with the taxpayers.” Guarino said Sparta must operate on a surplus budget. He said last year the township had $20,795,347.52 million to spend and an additional $3,276,663.25 in reserve to protect against uncollected taxes and other revenues. Lorranie Mackey, the township tax collector, said Sparta anticipated collecting up to 97.59 percent of due taxes this past year. To date, the township has collected $62,563,594, of the expected $63,678,613 due, she said. “Every township budgets for uncollected taxes,” said Mackey. “No one ever gets 100 percent collection back.” The finance director said $39,353,962 in taxes collected last year was spent toward the school district, $11 million to the county, and another $560,000 devoted to open space. “We have to have the cash,” said Guarino. “We have to pay the school on the 30th of the month and we have to pay the county on the 15th of the month.” Guarino said not paying on time would jeopardize the township’s current credit rating and its future ability to borrow money. Department heads spent the past month presenting the council with proposed budgets during public hearings. In previous years, departmental budgets were first reviewed by the township manager and then forwarded to the council for recommendations. Hambel said the council is in agreement that the new formula has some kinks that need to be worked out. “We won’t do it the same way,” she said. “To get the data raw from the department heads is one big waste of time. We know where we have work to do.”