Allentown Borough’s municipal tax rate could increase by 8 cents due to rising fuel, electricity and trash collection costs.
By: Lauren Burgoon
ALLENTOWN Growing costs for state-mandated, but nonfunded, expenses are hitting the borough hard this year.
Early tax rate projections suggest that the municipal rate could go up by about 8 cents, or about $128 for the average homeowner, this year thanks to rising costs in everything from fuel and electricity to trash collection.
"This budget is being impacted mostly by things we have no control over," Mayor Stu Fierstein said Tuesday.
That includes things like trash collection Allentown uses a public system and bids for the service originally came back for tens of thousands more than the borough was paying. The borough also pays for street lighting, unlike many towns nearby, and costs for that are rising. On the benefits side, state-mandated contributions to workers’ pension funds went up by 50 percent this year after remaining flat for several years.
There are also items like a new Breathalyzer machine required by the state for the Police Department. Towns that don’t use the updated machine will run into trouble having drunken driving tickets hold up in court, Mayor Fierstein said. But Allentown received no funds to buy the new machine and the price tag would account for a 2-cent tax rate increase alone.
All of these cost increases are occurring as Allentown is receiving no special grants or even any more state aid than last year to help lessen the tax impact on residents. It’s a situation felt all over New Jersey this year.
Even in a rough budget year, there is some evidence of a silver lining. Officials were originally considering a 20-cent rate increase, but worked to trim that down to 8.3 cents now. There will be a few more budget workshops before the public hearing May 26 to see if the rate can be slashed even more.
"There are a number of issues were facing and we’re struggling to find the answers," Mayor Fierstein said.
For example, the town looked into renting the Breathalyzer machine or sending detainees to the Hamilton state police barracks to be tested, both which were determined to be unfeasible. Officials also examined using credit cards for court fee payments. With fines sometimes in the hundreds of dollars, most defendants do not have enough cash with them and the town can’t collect the money immediately. But current state legislation would force the town, not the card user, to pick up credit card fees.
Other cost-cutting measures may be more achievable. Utility bills at the municipal building were high, largely because the building is old and not heat-efficient. But recent improvements to the heating, ventilation and air conditioning system should rectify that, Mayor Fierstein said, and lead to lower bills.
Now officials and residents will have to take a hard look at reality and make some decisions, Mayor Fierstein said. Should trash collection go private? Should the town pay for street lighting, realizing it is a public safety issue but a huge expense? Are there more shared services Allentown can utilize? The town is due for serious considerations on these issues and more, the mayor said.
The budget, introduced April 27, will likely continue to evolve. But if the tax rate increase stays at 8.3 cents, the municipal tax will be set at 95.6 cents per $100 of assessed property value, translating into a $1,472 municipal tax bill for a resident with a house assessed at the borough average of $154,000. That is about a $128 increase over last year.
The public hearing is scheduled for May 26 at 7 p.m. in the municipal building.