Budget brings first municipal tax increase since 2001.
By: Rebecca Tokarz
The Township Council approved a $41.6 million municipal budget Tuesday that carries the first municipal tax increase since 2001.
The council voted 4-1 in favor of adopting the budget. Councilman Ted Van Hessen, the lone Republican on the council, voted against the budget.
Mr. Van Hessen said he was "uncomfortable with a number of elements" in the plan, but was comfortable with about 90 percent of the budget.
"It’s an expression of discontent with the overall public policy issues," he said, adding some portions of the budget were "poor public and economic policy."
The municipal budget was introduced on March 18 and was unanimously approved by the council. Mr. Van Hessen was present for the meeting, but left prior to the budget introduction.
The spending plan is 14.9 percent larger than last year’s $36.2 million budget and carries a 3-cent tax rate hike, from 43 to 46 cents per $100 of assessed valuation. That means the owner of a house assessed at the township average of $186,900 would pay $859.74 in municipal taxes.
In March, Township Manager Barbara Sacks said two of the driving forces in the budget are the cost of snow removal and the reduced income on township investments.
The township allotted for an additional $20,000 for roads and street maintenance which will cover the increased overtime and other costs of snow removal caused by the February blizzard. It will spend $1.51 million for its roads and street maintenance this year.
Ms. Sacks has said the recent economic decline has led to reduced dividends on township investments. According to the budget, the township is anticipating $600,000 in interest on investments and deposits. Last year, the township anticipated $1.52 million, but generated $610,000. By the state law, the township is not allowed to anticipate more revenue than it earned last year.
The loss in investment income also had an impact on the township’s surplus account funds that are used to soften the tax rate blow to taxpayers. The township had $6.03 million available in surplus on Jan 1, compared with $8.2 million available in January 2001.
To keep the tax increase minimal, council members cut or adjusted some proposed staff hiring, which were included in a preliminary draft of the plan.
The budget includes provisions for three patrol officers sworn-in in January. The patrol officers will attend the Somerset Police Academy. They will earn $37,515 for their first year, which will be paid for by a federal COPS grant. The township will receive up to $375,000 to cover the salaries of the three officers for their first three years on the force.
The budget also includes $20,000 for a Senior Center social worker. The position is expected to be covered by a Community Development Block Grant, township officials said.
Mr. Van Hessen said he was concerned with several items, including the relationship that exists between water and sewer and the municipal budget.
Municipal employees who are not part of the Water and Sewer Department occasionally work for the department and charge the hours they work to the Water/Sewer Department.
"It paints a false picture of spending," he said. "Water and sewer (spending) should only be for direct water/sewer activity," Mr. Van Hessen said.

