Middletown planning for zero tax rate increase Depending on state aid figure, picture may change, mayor says

Staff Writer

By ELAINE VAN DEVELDE

Middletown planning for zero tax rate increase
Depending on state aid figure, picture may change, mayor says

MIDDLETOWN — If township officials get their way with state funding, they claim there won’t be an increase in the municipal portion of the 2002 property tax.

Introduced at the workshop meeting, the proposed budget boasts a lean 1.9-percent increase in municipal spending, from $48,745,419 in 2001 to $49,706,102 in 2002.

This means that the municipal portion of the tax rate would remain at 59.6 cents per $100 of assessed valuation. Translated, officials said, it amounts to $2.45 a day for a homeowner with property assessed at $150,000.

However, Mayor Patrick Parkinson cautioned in a previous interview that if Gov. James McGreevey persists in his threat to freeze state aid to municipalities, an increase would become inevitable.

"We’re counting on the amount of aid that the N.J. Department of Community Affairs Division of Local Government Services previously said Middletown would receive," he said.

Aid or not, Parkinson attributed an ability to keep the municipal rate low for the third year in a row to the collaborative expertise and sound fiscal monitoring of the Township Committee and the budget team, headed by administrator Robert Czech. He also cited a growing efficiency in municipal services.

"We’ve pulled our belts in," said Parkinson last week. "We’ve sought additional funding to strengthen our departments. There’s greater efficiency in departments as well. For instance, public works is working with greater efficiency each year. Parks and recreation uses corporate sponsors for events, such as the summer concerts, and seeks funds."

Keeping the budget tight was accomplished with no cuts in staff or services, Parkinson said.

Another factor contributing to the rate stabilization is that "the tax collection rate was very high this year," said Chief Financial Officer Robert Roth. "The collection rate was 98.44 percent in 2001 and 97.8 percent in 2000."

Pointing to stability in the township’s governing body as a key factor in maintaining a reasonable municipal tax rate, Parkinson said the township’s 2002 spending plan is well below the state cap on budget increases. He did call attention to the fact that the municipal tax rate is not to be confused with school taxes.

The municipal rate comprises about 20 percent of the entire bill received by taxpayers. Sixty percent is garnered for school expenses and another 20 percent goes to county services.

There is no date set for the budget’s public hearing. Roth said, though, the state budget is not expected to be introduced until March because 30 to 60 extra days are usually allocated for a new governor to transition and get a budget together.

"We’re in our budget year already," said Parkinson, "so we’d like to move as quickly as possible with the budget, but we’ll have to see what McGreevey is going to do about municipal aid. It will be his responsibility if we have to increase municipal taxes. We’ve done what we can."