New developement offsets an increase in spending
By: Matt Kirdahy
Township spending is slated to increase 20.7 percent this year, but taxes will not rise because of a growing ratable base, according to a budget introduced by the Township Committee on Monday.
The proposed $7.89 million budget calls for a 47.8 percent increase in debt service payments and a $354,462 increase in payments to the township capital improvement fund. Last year’s total budget was $6.53 million.
The increased spending will be offset by an increase in taxable property. According to the township, the total ratable base increased 3.2 percent over the course of 2002. That means the proposed tax levy of $3.18 million will be spread over a larger base.
In addition, the growth in ratables led an increase in available surplus, allowing the township to increase the amount it plans to use as revenue in this year’s budget because it meant the township raised more in taxes than it had anticipated when it approved its budget. The budget calls for $2.4 million in surplus to be used, up from $1.57 million in 2002.
If adopted, the budget would keep the tax rate at 68 cents per $100 of assessed valuation and would mean the owner of a house assessed at the township average of $215,000 would pay $1,462 in municipal taxes.
This year’s budget relies for revenue on $2.4 million from the township’s $3.9 million surplus account; $3.18 million in property taxes; $658,000 in state aid and $710,000 from township trust funds collected from developers for construction of affordable housing and sewer lines and pump stations.
The developer fees will be used to complete the Parkside affordable housing complex on Danser and Bergen drives and to build two new pump stations called for in the settlement of litigation with South Brunswick. The township used $298,004 in trust funds and dedicated fees as revenue in 2002.
The $3.18 million tax levy is $204,309, or 6.9 percent, larger than the $2.98 million called for in the 2002 budget.
The increased levy is being offset by $31 million in new ratables in the township, bringing the total tax base to $490 million.
Driving this year’s spending increase is a rise in the amount of debt service the township will be paying for past construction projects. The township anticipates paying $1.32 million toward debt $585,000 in interest and $432,000 in principal on bonds and payments and $121,125 in interest and $167,253 in principal on notes. It paid $896,100 in debt service in 2002.
The $428,339 increase in debt payments represents 31.5 percent of the total spending increase in the 2003 budget.
The township also plans to pay $355,000 more into its capital improvement fund in 2003 than it did in 2002. The fund contains money set aside for future capital projects, such as road construction. The township will pay $370,000 into the fund this year, compared with $15,538 in 2002.
The cost of health benefits for township employees also is increasing. According to the budget, the township expects to pay 425,000 for employee health insurance, up $120,000 from 2002 because the township anticipates hiring three new employees.
Altogether, the township will spend $2.14 million in salaries for all employees, down from $2.16 million last year.
The township plans to spend $1.34 million on the Police Department, including the hiring of two new officers, and $537,200 on Public Works, including the hiring of a new employee.

