Borough officials are expected to pass a resolution to adopt a final 2008 budget at the council meeting Tuesday, Oct. 14.

The borough received approval Wednesday from the state's Local Finance Board to waive the state-mandated 4 percent budget cap, allowing the borough to collect an additional $466,084 in property taxes.

The cap waiver paves the way for final approval of this year's budget, which is about $14.6 million. Without the waiver, the council would have been forced to cut spending.

"The levy allows us to adopt the budget as amended," said Andrew Salerno, borough business administrator. "Residents won't see an increase in their tax bill. The increase has already been built in. In fact, residents will see a small reduction in November's bill."

The proposed budget calls for a 19 percent increase in the tax rate. Owners of a home assessed at the borough average of $88,000 would see their local property tax bill increase by about $290, he said.

Last year, the local tax rate was $1.62 per $100 of assessed value, he said. This year's tax rate is $1.95 per $100 of assessed value.

"The 2008 budget doesn't call for any new programs," said Mayor Raymond Eppinger. "The additional funds are needed to maintain a status quo in the borough."

Officials said mandated costs and loss of revenues resulted in the tax rate increase.

The borough is receiving $250,000 less this year in host community benefits from the Edgeboro Landfill in East Brunswick, officials said.

"These are all things that are out of our control," Salerno said.

The borough's original budget, proposed in March, would have resulted in a 22 percent tax rate hike, Eppinger said.

But the borough was able to secure $200,000 in so-called extraordinary aid from the state, resulting in the amended budget in September, he said.

"In the budget we're planning on adopting on Tuesday night, taxes will be going up five cents less than planned in the original budget," Eppinger said.

With the 2008 budget in place, officials already have begun working on next year's budget.

"It's never good when taxes go up, but we're trying to get the town on sound financial footing," Eppinger said. "We took the steps in 2008 and hope to reap the rewards in 2009."