Local purpose tax rate should remain at 43.9 cents
By:David Koch
BORDENTOWN TOWNSHIP Although the municipal budget has yet to be introduced, township officials said Monday the draft spending plan being developed would keep taxes stable at last year’s rate.
The proposed $6.1 million budget would keep the local purpose tax rate at 43.9 cents per $100 of assessed property value, according to a budget memorandum issued at the Bordentown Township Committee’s work session meeting.
If the township receives state aid from the Regional Efficiency Aid Program (REAP), it would be able to reduce the tax rate by 2 cents to 41.9 cents per $100 of assessed valuation.
If the rate is reduced to 41.9 cents, the owner of a home assessed at the township average of $132,000 would then pay $553.08 in local purpose taxes this year.
Township officials said work sessions still need to be held with township departments.
State law requires 28 days between the date the budget is introduced and the final vote on the spending plan.
Deputy Mayor George Chilly said he is still absorbing the draft budget figures.
"I’m glad we’re in a position where we don’t have to increase taxes, but we still have to go line by line over the budget and see if cuts can be made," said Mr. Chilly.
The draft budget represents an increase of 1.4 percent, or $87,000, from last year’s budget. Increases in the budget include insurance costs, police salaries and landfill tipping fees.
Mr. Mason said the tax rate would be kept down through use of surplus revenue, continued ratable growth and aggressive pursuit of government grants by the Township Committee.
"This budget provides for all existing staff and all the current programs in the township," said Mr. Mason.
Since 1997, the local purpose tax in the township has been reduced by 27 percent from 58 cents per $100 of assessed property value to 41.9 cents.
If the draft budget remains unchanged, it will be the first time since 1998 that the local tax rate has not been reduced.