The tax rate increase stands at 3 cents. The original proposed budget included an increase of 5 cents.
By: Matthew Armstrong
The Township Council plans to keep whittling away at a proposed tax hike, after cutting the increase by nearly half since the budget was first unveiled in January.
The council voted 4-1 to introduce a $34.7 million budget Tuesday that calls for a 7 percent municipal tax increase, from 41 cents per $100 of assessed valuation to 44 cents. The budget is 7.4 percent, or $2.4 million larger than the 2000 budget, primarily due to rising health insurance and the cost of managing growth in the township.
Council members on Tuesday promised to continue working to cut spending to further reduce the tax rate by another penny. The council already has reduced the proposed rate by 2 cents.
"I think we’ve addressed the needs of our town and offered more services with this budget, " said Councilwoman Carol Barrett. "We will not be looking at a 3-cent increase when we are done. There are still parts of the budget that can be cut."
"I think it will end up being 2 cents and that’s what I will be looking at," said Mayor Debra Johnson.
Under the proposed 3-cent hike, the owner of a house assessed at $181,600, the township average, would pay $799.04 in municipal property taxes in 2001, an increase of about $54.78 over the 2000 bill.
If approved, the tax increase would be the first since 1997 when the municipal tax rate climbed 12.8 percent, or 5 cents. The township approved a 1-cent reduction in 1998 and held the tax rate steady in 1999 and 2000.
"When you look at what we’ve done over the past three or four years it shows tremendous restraint in spending taxpayers’ money," said Councilman Edmund Luciano.
The proposed 3-cent increase is down from the preliminary proposed budget which called for a 5-cent increase. Over the past few Saturdays, the council has been working to trim various areas of the budget to bring down the tax increase.
The township was able to increase its revenue projections because actual 2000 revenues were higher than first estimated, said Township Manager Matt Watkins. The state does not allow a municipality to estimate more revenue in a proposed budget than it generated the previous year.
Estimated expenses could change depending on labor negotiations with unions representing township employees, including police officers.
Currently, an estimated 5 percent or $658,093 increase in salaries and wages is expected. The township spent $13.1 million on salaries and wages for 2000.
Because the Township Council has sought to limit the amount of development, the increase in ratables or taxable properties was not as large as the year before. In 2000, the township had an approximate 4 percent increase in ratables whereas in 1999 there was a 6 percent increase.
One major force pushing the budget up this year is the rising cost of health insurance for township employees. Health insurance costs for the township increased by $477,848, up from $2.82 million in 2000. Workers’ compensation costs nearly doubled, rising $209,563 from $221,000 in 2000. Property and casualty insurance increased by $62,040 from $330,060 in 2000.
The township has been seeking new insurance policies, but to switch levels of service the township would have to renegotiate employees’ contracts, said Mr. Watkins.
The library budget will increase $125,952, or 6.2 percent, totaling $2 million for 2001.
The Health Department’s budget for 2001, excluding wages and insurance, is a proposed $49,335. Last year, the budget was $82,936, but the increase was due to the purchase of Hepatitis B vaccinations. In 1999 the budget was $36,585.
The Department of Recreation and Community Affairs will also grow. The township plans to expand its preschool and summer camps to include the disabled, maintain youth sports programs for more than 3,000 children in the community and have a fireworks display for the Fourth of July. Though most of the recreation programs are funded by user fees, the recreation department could spend $144,165 in 2001.
The water and sewer budget increased 6 percent, or $1.13 million, from last year’s $17 million largely due to 694 new customers in 2000.
The township’s debt service also has risen because of the number of capital projects that have been completed within the past year. Once projects are completed, the debt must be paid off. Debt service for 2001 is $5.2 million, up $57,625 from 2000.
The township plans to tackle a number of new capital projects in 2001 including the renovation and expansion of the Community Center, the extension of Route 522, which will connect to Route 535 near the NJ Turnpike, the creation of a historic museum and the study and possible construction of an aquatic center.
"We’re looking to buy more open space, and doing more for seniors and single families," said Mayor Johnson. "This is a very good budget."
But Councilman Ted Van Hessen said he would not support the proposed budget because he says the township is charging expenses against the water and sewer budget that should be charged to the municipal budget.
"Taxpayers should pay for taxpayer related items and users should pay for using township services," said Mr. Van Hessen. "If too much is being pulled from utility, then users could see a rise in fees. Conversely, if too much is being taken out of the general fund, then taxpayers are paying too much. I just want an accurate accounting."
The township estimates how much time employees work on water and sewer related business and then bills those hours to the water and sewer budget, not to the municipal budget. Township employees who perform work for both the water and sewer department and the township fill out surveys to calculate how many hours they work for each.
Mr. Van Hessen said the estimates in some township departments have been done haphazardly and inflate the water and sewer budget while artificially lowering the municipal budget.
Other council members disagreed.
"Trying to allocate the hours from shared services is difficult and we try to do the best we can," said Councilman Frank Gambatese. "I could see his point if we were raising water and sewer fees, but we haven’t raised them in years. Nobody is paying more for this. We have a $7 million surplus in the general fund and $4 million surplus in the water and sewer fund. The township has gotten much better."