The Township Council voted unanimously on Tuesday to adopt a $49.57 million budget for 2008.
The spending plan calls for the tax rate to remain at 62.5 cents per $100 of assessed value, the same as it was in 2007. Under this rate the owner of a home assessed at the township average of $194,400 will pay $1,215 in municipal taxes in 2008.

Though taxes will remain stable, total spending will increase $503,765 from 2007’s $49.07 million budget. The spending increase is being offset by increased surplus use. Much of the spending increase is being caused by increases in pension, Social Security and health care contributions mandated by the state.

This year, the budget calls for the use of $9 million of surplus as revenue, about 91 percent of the $9.8 million available as of Dec. 31. In 2007, the township used $8.5 million of its surplus as revenue, about 80 percent of the $10.5 million available on Dec. 31, 2006.

John O’Sullivan, a Republican candidate for the Township Council in the November election, criticized the all-Democratic council, saying the budget uses too much of the surplus.  ”It is not surprising in an election year the governing body has chosen to spend reserve rather than propose a budget that will allow us to live within our means,” Mr. O’Sullivan said. “What happens next year, when there is no local election? All those expenses will still be there, but the surplus will be gone.”

The council members disagreed with Mr. O’Sullivan, saying that the surplus builds each year and that they are confident it will regenerate for 2009.

”Every year that I have been on this council, and I have been here for 11 years, I have heard that we are using too much surplus,” Mayor Frank Gambatese said. “Surplus is the people’s money. When it builds up it should go back to the people.”

Mayor Gambatese said that several new businesses and warehouses have come into South Brunswick this year, and he believes the township will be able to recover the surplus it is using.

”The surplus is a renewable line item, and we have succeeded in renewing it in the past,” Councilman Charlie Carley said. “That should give people confidence.”

Other changes in revenue include a $418,943 decrease in state aid to $6.5 million. Interest earned on investments and deposits is expected to increase to $1.37 million from $1.1 million. Revenue from Uniform Construction fees is expected to increase $500,000 to $2.5 million, while revenue from shared services with neighboring communities is expected to increase from $173,380 to $305,477. Receipts from delinquent taxes are expected to increase to $1.2 million from $1 million.

On the appropriations side, mandatory Social Security expenditures required by the state increased by $130,000 to $1.7 million. In addition, mandatory contributions to the Public Employee and Police and Fire Retirement Systems increased by $839,250 collectively, with $1.5 million going to police and fire and $843,250 going to municipal employees.

The budget calls for a decrease in spending on road maintenance salaries from $1.56 million to $1.41 million, and a decrease in snow removal costs of $300,000.

Police salaries will increase by $507,179 to $8.7 million, and employee group insurance expenses will rise from $4.4 million to $4.6 million. Salaries and other expenses for uniform construction code enforcement will fall by $199,094 to $966,368.

Funding for the public library will decrease by $367,044 to $2.44 million. However, when pension and Social Security for library employees is included, the funding is raised to the state minimum of $2.78 million.