propose $392 million
spending plan for 2003
Increasing value of county
aids effort to hold tax rate
Monmouth freeholders
propose $392 million
spending plan for 2003
By dick metzgar
Staff Writer
A familiar scenario continues with the Monmouth County budget in 2003, which was adopted by the county Board of Freeholders on Feb. 27. The budget was introduced on Jan. 23.
While the county’s budget to maintain its operations continues to increase, the average tax rate for its 53 municipalities continues to decrease.
The county’s total spending package of $392.5 million for 2003 is up $16.2 million from $376.3 million in 2002. The amount to be raised through taxation on county property owners is $250.2 million, an increase of $14.2 million from $236 million in 2002.
The county tax rate of 37.12 cents per $100 of equalized valuation to support this year’s budget is a decrease of 2.99 cents from 40.11 cents from 2002. That tax rate does not include either library or health taxes, which are paid as separate taxes.
That means a person who owns property with a true value of $150,000 will pay $556.80 in county taxes in 2003, down from $601.65 in 2002. A person with property having a true value of $200,000 will pay $742.40 in county taxes this year, down from $802.20 last year.
The county tax rate can vary from one municipality to another depending upon each municipality’s total property value. Some property owners could see an increase in the county taxes they pay, while others may see a decrease this year.
As has been the case for the last decade, one of the reasons the county has been able to maintain a stable tax rate is the steady increase of the ratable base — equalized property valuations. This year the ratable base is projected to increase $8.61 billion to $67.425 billion, according to information provided by Monmouth County.
The county tax is one of several assessments in the tax package levied on property owners. The others are the municipal tax, the regional school tax and the local school tax. Residents of some communities also pay a fire district tax and an open space tax. In addition, there is a county open space tax assessment.
Salaries and wages take $148 million of the county’s 2003 budget, up $11.5 million from last year’s $136.5 million.
The human services and heath functions take the biggest departmental bite out of the budget, 24 percent, or $85.5 million this year.
Public safety functions will account for the second largest chunk of the budget at 19 percent, or $68.1 million, Debt service will take 12 percent, or $41.6 million of the budget.
The biggest source of revenue this year — 64 percent — is that raised through taxation. The surplus accounts for 9.56 percent, or $37.5 million, while state aid will account for 9.17 percent, or $36 million.
The biggest reason for the jump in the total spending package this year is the increase in salaries and wages, according to Mark E. Acker, the county’s finance director.
"Our health benefits are also up from last year and we’re subjected to the general inflationary pressures just like everyone else," he said.
Acker also said anticipated revenues in two areas are expected to decrease this year.
"Our interest on investments was down $5.2 million in 2002," Acker said. "We don’t expect it to be that much this year, but we expect the interest rates will be down and we will lose some revenue in that area."
State aid is another area in which revenues are expected to decrease, Acker said.
Last year the county anticipated getting $39.5 million in state aid, but actually received $43.1 million. This year, the county anticipates getting about $36 million in state aid, according to Acker.
The increasing real property values have proved to be a real bonus for county budget-makers over the last decade. Acker was asked what would happen in a worst-case scenario in which property values stayed the same or even decreased in the future.
"It wouldn’t affect our budget because we would have to have the same amount of money to run the county," Acker said. "However, the tax rate would increase. But I can’t see real property values going down in the foreseeable future. I think they are going to continue increasing."