This article is part of a series looking at ratables in Washington Township.
By: Mark Moffa
WASHINGTON Over the past two decades, typical suburbs have experienced significant residential growth in association with sprawl, leading to increased costs for services and the need to expand facilities, such as schools.
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Related stories: • Taxing problem (Sept. 20, 2001) |
"Washington Township is basically the prototypical New Jersey suburb," Committeeman Jack Mozloom said. "We’re just now coming to grips with the cost of all this development."
Mr. Mozloom and Mayor Dave Fried commented on the chase to bring new business to the township, thereby reducing the tax burden on residents.
"We’ve increased ratables over the last 18 months by 60 percent," Mayor Fried said. He said about $2 million in commercial ratables were added to the tax rolls in the past year, an amount that equates to 20 cents in the tax rate.
Currently, the township’s total tax rate is $3.21 per $100 of assessed property value. The township’s budget is responsible for 40 cents of the tax, while the school district’s tax rate is $1.88. The fire district is responsible for 16 cents of the $3.21, and the municipal open space tax is 5 cents. Mercer County’s tax rate is 63 cents, the county library tax accounts for 7 cents, and the county open space tax is 2 cents.
The township this year began a subcommittee for recruiting new businesses as a part of the Economic Development and Business Retention Committee. Mayor Fried said the group really hasn’t started working yet.
He said the township needs to change its reputation in order to attract businesses.
"We’ve had a reputation over the years for turning projects down," he said, pointing to the difficulties BP Amoco currently is having at the zoning board.
The company is applying for variances to locate a gas station at the corner of Meadowbrook Road and Route 130. Nearby residents have objected to the plan.
Mr. Mozloom, who has supported the residents in fighting the gas station, said the township should be aggressive in marketing itself to businesses but that Washington needs to make sure it does not urbanize. It’s hard to tell, he said, if all types of commercial ratables are good.
"The ratables chase is not the great payoff that municipal officials think it’s going to be," he said. "I would hate to see, for example, a mall in Washington Township."
Such an entity, although it would bring in a lot of tax revenue and may be attractive to planners, would increase costs in other areas such as trash collection, police, and fire services, he said.
Mayor Fried said the township’s Northeast Business Park will be the main player in adding commercial ratables to the tax base. He said the township has three advantages a great location, a relatively low tax rate, and a speedy approval process.
But, he said, if businesses wishing to locate in Washington are given a hard time and if the tax rate increases substantially as is predicted with the possible construction of a $50 million high school Washington will lose its edge in attracting commercial entities.
"The competition for us here in Washington Township is really Exit 8A," he said, referring to the New Jersey Turnpike exit that borders South Brunswick and Monroe townships. Exit 7A of the Turnpike is in Washington Township.
"If our tax rate gets too high and the economy continues to slip, odds are we aren’t going to get any new businesses.
"It’s something that the Township Committee is very, very, very worried about," the mayor added.
Mr. Mozloom agreed.
"The tax rate, as it increases, is going to make it more difficult for us to bring in businesses," Mr. Mozloom said. "I was a little bit discouraged, frankly, to see the school board reject the idea of cutting their plan down."
He was referring to the school board’s recent decision to reject a proposal to cut $7.4 million off the cost of the high school proposal. The board this week approved a cost reduction of less than $2 million.
"There’s really not much municipalities can do, frankly, except control their own budgets," Mr. Mozloom said, noting that tax abatements are illegal.
"Some of our smaller employers are already feeling the squeeze," he said.
Mr. Fried said larger companies, such the Seaman’s warehouse in the business park, have been affected as well. Seaman’s, he said, has seen a $250,000 increase in taxes since moving in last year.
He said the high school was not the only tax concern facing the township.
"A high school by itself probably won’t kill us," he said. "But when you look at all the projects together, that’s when you get a look at what your true tax rate will be."
Some of the other costs, Mayor Fried said, include a new facility for the Public Works Department, a new court house which may be required by a court order, and a rescue squad service to be provided by the fire district.
Last week, the Township Committee discussed hiring a private accounting firm or recruiting the state’s Treasury Department to estimate Washington’s tax rate for the next five years.
Another legislative aspect affecting taxes is a proposed ordinance to regulate home-based businesses in the township, Mr. Mozloom said. That ordinance, which he helped to write, was introduced at last week’s committee meeting and seeks to "grandfather" all existing home-based businesses.
It’s important, Mr. Mozloom said, to keep home-based business owners in town even though those businesses are taxed simply as residential units.
"To the extent that they can stay here and continue to pay taxes as a residence is important," he said.
Mayor Fried said the commercial growth witnessed by Washington this year was unprecedented.
"This is the first time in Washington Township’s history that our commercial base grew more than our residential base," he said.
But, he added, the township would need to keep that pace for the next five to 10 years to preserve its tax rate. And that, he said, is a daunting task, particularly with the current nationwide economic downturn.
"It’s going to be difficult to maintain this kind of commercial growth," he said.