Living in Edgewater is going to costs homeowners 4.86 percent more, according to the municipality’s budget, which government leaders introduced Sept. 15.

The $21.7 million plan is 2.13 percent higher than the last budget, according to figures that have been released.

If the council approves the fiscal year budget residents who own a home assessed at $550,000 will pay roughly $6,000 in municipal taxes.

Borough Auditor Steve Wielkotz said the percentage of the tax levy increase is more than the budget’s increase because of a rise in pension contributions and less state aid this year.

The spending plan is expected to under go more revisions now that it has been introduced.

"If you want to keep up the same services and payroll then this is the budget," Wielkotz said.

The budget uses $3 million of the borough’s $3.8 million 2008 surplus. Wielkotz recommended against using all of it because $500,000 was a one-time payment from the sale of Edgewater Municipal Utilities Authority to Bergen County.

Councilman David Weschler asked if the borough could expect another large surplus. Wielkotz said that for the last four or five years it has always been more than $3 million. He said construction fees have been slowing down lately but court fees still provide good revenue.

Borough Tax Collector Joseph Iannaconi Jr. said he saw a lot of homeowner tax appeals after the recent revaluation but not much from businesses. He said he does not anticipate a major loss in tax revenue from that area.

The borough applied to the state for extraordinary aid, but given the shape of New Jersey’s budget and amount of Edgewater’s surplus, Wielkotz said the chances of getting it are not great.

A public hearing on the budget will be held before the council votes to adopt it.