Aid to tune of $300,000 will defray tax increase

By jamie dougher
Staff Writer

By jamie dougher
Staff Writer

MILLTOWN — Residents can sleep easier, now that the borough has received enough state aid to defray a municipal tax increase for 2003.

Milltown will receive $300,000 in discretionary aid from the state to appropriate in this year’s budget, which was initially prepared in the spring without anticipation of the state aid.

Council President Gerard Cappella said the assistance was garnered for the borough with the help of state Sen. Bob Smith (D-17th District).

The discretionary aid lowers the tax burden on Milltown residents because it brings the tax rate increase to 6 cents for every $100 of assessed value, as opposed to the 12-cent increase residents could have received without the state funds.

The municipal tax rate will go from 69 cents to 75 cents per $100 of assessed valuation, unless the Borough Council can adjust the budget to further lessen the increase, and depending on county appropriations. The increase means the owner of property assessed at $100,000 will pay $750 in municipal taxes this year — an increase of $60.

Municipal taxes represent about 19 percent of Milltown residents’ property taxes, which also include school and county taxes. Last year’s overall property tax rate in Milltown was $3.71.

"This has been my goal since I have been in office — to eliminate spikes," said Mayor Gloria Bradford.

She said it is unrealistic to say the council could eliminate the tax increase entirely, because budgetary changes this year could have an adverse effect on the next year’s budget. She said it is her job to keep the council focused on the big picture.

"It’s wonderful to say no tax increase, but what does that do to the next year?"

Bradford said it is a challenge to prepare a budget each year because the council is unaware of how much, if any, money will be granted by the state in discretionary aid.

"We are very, very grateful to receive it, and we will certainly use it to work toward a stable tax rate," she said.

Milltown’s budget this year is tentatively set at $6,186,390 — a decrease of $105,033 from the previous year. Officials said it may be approved by August.

Borough Business Administrator Richard Rydstrom said the budget differs because of changes in employee salaries and in the cost of items necessary for municipal departments to function. Milltown has not hired new employees or instituted new programs recently.

"As always, we fine-tune the budget as well as make certain adjustments within the budget to offset [the tax] increase for our residents," Cappella said. "It does help our residents. We hope they see that we work very hard to achieve that."

Bradford said the council is looking for ways to minimize a tax increase by cutting any unnecessary funding from the budget.

"We will go back and continue to look for ways we can decrease the taxes," she said.