Red Bank Passes Budget With Deficit and $1.6 Million Of New Spending; Officials Say It Will Be Covered By Fund Balance

Wednesday, June 22, 2022

The Red Bank Commission voted 4-1 on Tuesday to approve a new $8,311,319 budget without a tax increase but with a "deficit." City officials said the deficit will be handled by use of fund balance (rainy day fund).

The tax rate remains at $1.10 per $100 of assessed valuation.

Mr. Alexander said of the fund balance use, "It's taxpayers' money and shouldn't be just sitting there accumulating forever." He said the same process had been used before.

Spending is to increase from $6,702,760 to the $8.3 million amount - a rise of $1,608,559.

A budget document shows a deficit of $806,874 and a surplus of $714,263 with a difference of $92,611 to be made up.

There are new positions that will cost $347,746. They include a Fire training captain ($91,515), IT specialist ($74,102), Stormwater manager ($94,027) and Parks professional ($74.102).

Commissioner Ruth Jeno, who cast a no vote, said, "I don’t think our city needs to hire some of the positions; they are a luxury not a necessity. The fire chief asked for nine additional firefighters and the police chief asked for three new officers to keep our families and homes safe and they were not even considered."

She said the state Comptroller's Office has instructed municipalities that "the budget must be balanced when it is adopted."


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