City taxes to rise $27 on average

Lambertville missed the deadline for "extraordinary" aid from the state for flood-related expenses.

By: Linda Seida
   LAMBERTVILLE — Municipal property taxes will be going up, but not by as much as officials initially thought they might because of flood-related expenses.
   The property tax will increase $26.70 per year for the average homeowner.
   When the City Council first proposed the budget last month, officials said the increase could be as high as $62 per year if the state refused the city’s request for a category of funding termed "extraordinary aid."
   The city missed the deadline to request such extraordinary aid and, therefore, is not eligible for the funding. Mayor David Del Vecchio said the city missed the deadline because the flood occurred after the deadline had passed. The city had not intended to request extraordinary aid until flood-related expenses mounted and made the request necessary, he said Tuesday.
   The council adopted an amended $3.51 million budget Monday night. The budget came in lower than the $3.53 million originally proposed because officials finally had in hand an accurate tally of flood-related expenses, such as overtime for the Police and Public Works departments and the cost to rehab the flooded Justice Center.
   Municipal flood-related expenses are not eligible for federal relief funds under the disaster declaration signed by President George W. Bush last month, although property belonging to residents and merchants is eligible for funding from the Federal Emergency Management Agency.
   The city’s coordinator of the Office of Emergency Management, David Burd, has said the tally of flood damage to both public and private property is $26 million.
   For a homeowner whose property is assessed at the city average of $290,525, taxes will rise $26.70 for a total of $579.25. Last year, when the average property was assessed at $260,129, the tax was $551.45.
   The tax rate will be 19.9 cents for every $100 of assessed valuation. Last year, the tax rate was 21.2 cents per $100 of assessed valuation.
   The portion of the budget paid for by local taxes, known as the tax levy, will be $1,127,484. Last year, the tax levy was $1,068,061.
   "That’s still only 16.5 percent higher than the tax levy in 1991," Mayor Del Vecchio said.
   Cleanup of the Justice Center on South Union Street has cost the city $20,000, and another $105,000 is needed for rehab. Mayor Del Vecchio said the city will have the money to cover these costs, and tax dollars will not be used.
   Twenty-five thousand dollars will come from the city’s insurance policy. The remaining $100,000 will come from a state Treasury grant diverted from its original propose of upgrading the building’s sound and lighting systems and making it accessible to record and televise city meetings.
   The city’s revenue includes $190,000 collected from parking meters. Revenue from hotel tax is $69,582. Municipal court will bring in $225,000. Fees and permits will bring in $62,762.
   Licenses will net $19,838. Funds from UDAG, the state’s Urban Development Action Grant program, will be $125,000.
   Expenses include more than $9,000 in police overtime and more than $3,000 in Public Works overtime for the early April flood.
   Police Department salary and wages total $765,363. Last year the department’s salaries and wages totaled $720,165.
   Public Works salary and wages total $200,000. Last year, they totaled $188,149.
   Group health insurance for city employees totals $305,000. Last year the city paid $284,098 for benefits for its employees.