Budget increases by $5.7 million.
By: Kara Fitzpatrick
MONTGOMERY The Township Committee approved a $31.3 million municipal budget Thursday night by a vote of 4-1, with Mark Caliguire dissenting.
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. About $8.4 million of the $31.3 million will be raised through property taxes.
Mr. Caliguire said he voted against the budget because of its drastic increase from last year.
"I don’t see how anyone could adopt a budget with a 22 percent spending increase when voters have just overwhelmingly rejected a 16.5 percent increase in the school budget, and that was in a year which you could call extraordinary, because a new high school is opening," Mr. Caliguire said.
Mr. Caliguire said using surplus "to finance an increase of that magnitude is a bad decision."
According to figures presented Thursday, the estimated municipal tax rate for 2005 will be 22.4 cents per $100 of assessed value. The average homeowner, with a property assessed for tax purposes at $513,800, will pay about $1,151 in municipal taxes.
Chief Financial Officer Randy Bahr emphasized that the budget is one of tax stability, adding that the increase is largely due to capital projects.
"Montgomery remains in very good shape, financially," Mayor Louise Wilson said after the meeting. "We continue to have among the lowest municipal taxes in region and the most generous surplus."
Mayor Wilson supported the strategy of using surplus funds. She pointed out that after the township uses the needed funds from its surplus of which there is about $20 million to draw there will still be a surplus balance of about $6.2 million.
The capital expenditures include money for road repairs including Fox Chase Lane, Tall Cedar Court and Deer Run Drive and engineering expenses for the rebuilding of Spring Hill , Orchard and East Mountain roads. In addition, capital funds will be spent trying to alleviate traffic congestion with the creation of two loop roads off Route 206.
"I am looking forward to seeing some of these capital projects under way, finally," Mayor Wilson said Thursday, attributing the increase to "long overdue" capital projects that have broad public support.
In addition, capital funds will go toward open-space purchases and new snowplowing equipment.
Following the meeting, Mayor Wilson pointed out that municipal operating costs are rising only 5 percent, despite major increases in utilities, pension payments and energy prices.
"Also included in the 5 percent increase to the operating budget is bringing our police force up to its authorized strength of 34 officers and adding two parks employees and two recreation employees," Mayor Wilson said. She added that the recreation employees will conduct additional programs that are likely to offset the cost of the added salaries.
Several residents experienced a leap in property values during the December reassessment, which caused concern throughout the township. Mayor Wilson said that because of that reassessment, some residents may see a variation in their tax payments from last year.
If an assessment increased by no more than 24 percent, the homeowner would pay the same or less in municipal taxes than in 2004, Mayor Wilson said. If an assessment went up by more than 24 percent, the resident will experience a larger bill this year than last year, she said.

