The story behind Hopewell Township’s proposed 2003 budget

GUEST COLUMN

By Christine Smeltzer
   The Hopewell Township Committee introduced the 2003 municipal budget on April 10. The proposed budget totals $15,046,182, which is 9.8 percent or $1,344,811 more than the $13,701,371 budget for 2002. The public hearing on the 2003 budget is scheduled for the Township Committee meeting of May 15. The meeting begins at 7 p.m. in the Hopewell Township municipal auditorium. The public is welcome to come, ask questions and comment on the municipal budget at this time.
   The major policies upon which this budget are based are:
   • Minimizing tax impacts while planning for the future;
   • Maintaining township services;
   • Keeping the affected budget below the 5 percent cap;
   • Reducing the use of surplus;
   • Providing funds for a limited 2003 capital program.
   The Township Committee reviewed more $16,000,000 in 2003 budget requests. These requests would have resulted in an 11-cent municipal tax increase. After determining that there would be no new positions added, certain vacancies would not be filled, and numerous operating expense requests would be reduced, the committee introduced a budget of $15,046,182 that will result in a 5-cent tax increase. The municipal tax rate is proposed to increase from $0.25 to $0.30 per $100 of assessed value. For a home assessed at $250,000 this means an increase in the 2003 yearly municipal tax bill of $125.
   The 2003 budget maintains existing levels of service and is $ 295,611 under the 5 percent cap. The use of surplus is $3,234,324, which is $148,808 less than that used in 2002. The contribution to the 2003 Capital Improvement Program is $100,000 compared to $300,000 appropriated in the 2002 budget.
   Health insurance, debt service, salary and litigation costs make up the major increases in the 2003 budget. Revenues have been negatively impacted by reduced interest rates. The township anticipates receiving only $350,000 in interest on investments, which is $267,000 or 43 percent less than that anticipated in the 2002 budget.
   Expenses have been driven by the substantial increases in population and development. The population in the township increased by 4,515 people, or 39 percent between 1990 and 2000. The population is now 16,105 according to the 2000 census. The 1990 census pegged the population at 11,590.
   The impact of development from 1995 to 2003 can be shown by the 54 percent increase in the township’s assessed value. The number of residential lots grew by 1,203 — from 4,238 to 5,441— or 28 percent during this period.