Budget Meeting

MARCH 29, 2025 BUDGET MEETING OF MAYOR AND COUNCIL, MARCH 29, 2025, AT 9:00 A.M. IN COUNCIL CHAMBERS OF BOROUGH HALL Mayor Michael W. Mangan read the statement re: Open Public Meetings Act of 1975 and that adequate notice has been provided by transmitting the Resolution of Annual Meetings to the Asbury Park Press and the Coast Star, by posting it in the Borough Hall on a bulletin board reserved for such announcements, and by posting it on the official website of the borough. Mayor Mangan welcomed the audience and invited them to join in a moment of silent prayer and a salute to the Flag. ROLL CALL: Present: Council Members Bruce Bresnahan, Jay Bryant. Brian Holly, Gregg Olivera, Lori Triggiano, and Sheila Vidreiro. Absent: None Also present was CFO Amy Spera and Borough Administrator Thomas Flarity. Mayor Mangan made a statement regarding the Utility Budgets. He stated that the Beach Utility Budget is financially stable, while the Water-Sewer Budget is tight, with an effort to maintain a 3% increase. He emphasized that revenue would continue to be closely monitored. Mayor Mangan also noted that the budget presentation is for informational purposes and asked the council to consider presenting the budget at a regular council meeting in the future. Councilman Bryant expressed that the Water-Sewer Budget is self-liquidating and that some increases are due to necessary system upgrades. He stressed the importance of this budget, noting that it supports crucial infrastructure for the town. Councilman Bryant further emphasized the administration’s annual goals, which include maintaining or enhancing public services, strategic capital planning, infrastructure upgrades, responsible debt management, building financial reserves, and ensuring long-term sustainability and predictability for taxpayers. WATER/SEWER BUDGET CFO Amy Spera presented the proposed 2025 Water/Sewer Utility Budget, using a visual display to outline the details. She explained that both the Water/Sewer and Beach Utility Budgets are self-liquidating and funded through user fees. The primary goals of the budget are to maintain essential services, upgrade and repair infrastructure, support capital planning, manage and reduce debt, build reserves, and — most importantly — ensure sustainability and predictability. Ms. Spera reported that the 2025 Water/Sewer Budget totals $3,657,651.17, representing a 3.74% increase over the 2024 budget. She provided a breakdown of the expenditure, noting that 40% of the budget is allocated to fees paid to the South Monmouth Regional Sewerage Authority (SMRSA). The remaining budget supports operating expenses, salaries and wages, and statutory expenses. She emphasized that 62% of the budget is non-discretionary, covering necessary costs like SMRSA fees, debt service, and infrastructure investments. Ms. Spera also reviewed the Utility Appropriations, highlighting that $150,000 in capital improvements were funded through cash payments. These non-discretionary improvements include fire hydrant replacements, valve repairs and replacements, lead service line replacements, and other smaller infrastructure projects.Looking ahead, she outlined future Sewer Capital Requests and Water Capital Requests that are not yet incorporated into the current budget. Mayor Mangan raised concerns about the current water rate structure, noting the flat rate billing system does not reflect actual water usage, especially between private and commercial users, and does not maximize potential revenue. Ms. Spera reviewed the debt and deferred charges, totaling $670,402.70, and pointed out that recently completed infrastructure improvements are expected to help reduce debt in future years.  MARCH 29, 2025 Ms. Spera reviewed the Water & Sewer Revenue, which includes rents, miscellaneous income, and surplus funds. She provided historical revenue data and discussed the current surplus balance. Ms. Spera asked the council members if there were any questions regarding the presentation, There were no questions. BEACH UTILITY BUDGET Ms. Spera presented the Beach Utility Budget on the large screen. She stated the budget totals $3.2 million, a 2.5% decrease over last year. A large portion of this budget is allocated to salaries and wages, primarily due to statutory requirements for minimum wage and contractual obligations. She reviewed the operational expenditures, noting that the $873,000 increase this year is largely due to higher property insurance and health insurance costs, along with contributions for Social Security and pensions. Ms. Spera also provided a review of the utilization of surplus, capital improvements, debt, and deferred charges. She addressed the revenue side of the budget, noting that the primary source of income is generated through beach fees. She acknowledged the variability in this revenue stream due to fluctuations in weather conditions, which directly impact beach attendance. She explained how the surplus is utilized to pay down debt and fully fund certain items with cash. Ms. Spera asked the council members if there were any questions regarding the presentation, There were no questions. AUDIENCE PARTICIPATION Councilman Holly made a motion to open the meeting up to the public, seconded by Councilman Olivera. Motion carried unanimously. Cindy Weaver, Third Avenue, inquired about the number units billed on Water & Sewer. Amy Spera responded that 3750 average number units are billed throughout the year. There being no other comments Councilman Holly made a motion to close the public portion, seconded by Councilwomen Triggiano. Motion carried unanimously. Mayor Mangan read the Closed Session Resolution. Councilman Holly made a motion to pass the closed session resolution, seconded by Councilwomen Triggiano, motion carried unanimously. The closed session portion of the minutes begins on the next page. The signature and approval date are located on the last page following the closed session meeting minutes. Councilman Holly made a motion to close the regular meeting at 7:56 p.m., seconded by Councilwoman Triggiano. Motion carried unanimously. Respectfully submitted, Nancy Acciavatti Municipal Clerk DATE APPROVED _____________________ MARCH 29, 2025