Initial calculations indicate
1-cent increase in tax rate
By jeanette M. eng
Staff Writer
MARLBORO — Frozen state aid and a decrease in federal grants coupled with close to $500,000 in snow removal costs this winter may mean a 1-cent increase in the municipal tax rate for residents this year, Mayor Matthew Scannapieco predicted at a Feb. 27 Township Council meeting.
"I just want to give the public a preview of some significant issues pertaining to the budget. This is not final," Scannapieco said, noting that he plans to introduce his administration’s budget in two weeks.
The mayor predicted a $985,000 increase from the 2002 municipal budget of $24.6 million and a hike in the municipal tax rate from 41.9 cents to 42.9 cents per $100 of assessed valuation.
With a tax rate of 42.9 cents, the owner of property assessed at $200,000 will pay $858 in municipal taxes in 2003, up from $838 in 2002. The owner of property assessed at $300,000 will pay $1,287 in municipal taxes in 2003, up from $1,257 in 2002. The owner of property assessed at $400,000 will pay $1,716 in municipal taxes in 2003, up from $1,676 in 2002.
Municipal taxes are one portion of a township property owner’s tax bill. Other taxes are paid to the Marlboro School District, to the Freehold Regional High School District and to Monmouth County.
The projected tax increase is a result of decreasing revenues and increased expenses for the town, the mayor explained.
"We are receiving $350,000 less in federal grants than last year," he said, referring to a combination of three- and four- year grants used to hire additional police officers. "The grants have run out" and now the officers’ salaries must be paid entirely by the township, he noted.
This is also the second year in a row that the town has received no increase in state aid.
According to Scannapieco, the town has spent close to $500,000 in snow removal costs this winter, which is at least $200,000 more than was spent a year ago. Increased expenses also include a rise in contractual salaries and benefits which include many of the town’s union employees.
The mayor’s budget synopsis used $7 million in surplus funds and $4 million in deferred school taxes to help offset taxes.
The mayor said he may find cuts to decrease the budget, but noted that he was doing his best.
"Last year and the year before there has been no [tax] increase at the municipal level," he said. "I think that a 1-cent increase in three years is a prudent move."
Councilman Barry Denkensohn, however, did not feel so comfortable with the mayor’s plan to use deferred school taxes in this year’s budget.
"This year we have $7 million available in surplus. I don’t think that using $4 million in additional deferred school taxes is prudent at all," Denkensohn said. "When revenues go down, expenses need to go down. That’s the responsibility of the council."
According to Scannapieco, using deferred school taxes toward the budget is a right the council has practiced since 1990.
"If we don’t use the deferred school tax, we will have a lower surplus of $4 million to carry into next year," the mayor said, adding that this will ultimately have to be made up through increased taxes.
Scannapieco responded to Denken-sohn’s comment about cutting spending by saying that "what you think you can cut is not always what you can."
"Marlboro has a certain lifestyle and there’s no way to cut certain things," he said, adding that too many cuts would take a toll on services to residents.
The mayor said he would return with the final budget at the next council meeting for discussion.