Budget to increase by $5.7 million.
By: Kara Fitzpatrick
MONTGOMERY The Township Committee introduced a $31.2 million budget Thursday that should keep municipal tax payments at last year’s level for the average homeowner.
The budget represents a focus on infrastructure, said Donato Nieman, township administrator.
The budget, which has increased $5.7 million from 2004, includes $5.1 million for capital improvements, $3.2 million for police and a $145,000 increase in insurance costs. It was introduced by a 4-1 vote, with Committeeman Mark Caliguire voting against its introduction, citing concerns over the amount of money being used from the surplus.
About $8.4 million will be raised through property taxes.
If the committee grants final approval to the spending plan, the approximate tax rate would be 22.4 cents per $100 of assessed value, said Chief Financial Officer Randy Bahr. The average homeowner, with a property assessed for tax purposes at $513,000, would pay $1,149 in municipal taxes, said Mr. Bahr.
In 2004, the average assessed home value was $429,000 and the municipal property tax for that home was $1,145.
The budget is about $900,000 more than a draft budget that was presented to the committee last month. But the total to be raised through property taxes is $900,000 less. Mr. Bahr said the budget was reworked to draw more money from surplus.
"If you take the theory of the whole town," the budget will have a neutral levy, Mr. Bahr said during a budget workshop session Tuesday.
Although property assessments increased about 24 percent across the board, Mayor Louise Wilson said the tax rate has decreased 19 percent. Other money has been gained through increased township revenues.
Responding to Mr. Caliguire’s concerns about use of the surplus, Mayor Wilson said using the surplus funds for certain items in the budget is completely reasonable.
"We’re not talking about funding wish-list items," she said.
The items being funded by surplus will not continue to swell the budget in the future, said the mayor.
"These are not new positions, they’re not benefits, they are not things that will continue to grow in the budget," Mayor Wilson said.
The Township Committee will hold a public hearing on the budget on May 5.

