Officials say the increase is due mainly to grant projects and the development of a park on Ferry Street.
By: Linda Seida
NEW HOPE For the first time in four years, municipal taxes will be going up in 2006 if the almost $3.6 million budget proposed by the Borough Council is approved next month.
The tax increase would total $16.59 more a year for the owner of a house assessed at the borough average of $47,408.46.
The council will hold a public hearing on the proposed budget Dec. 13 and could vote to approve it that night.
Copies of the budget are available to the public at Borough Hall at 41 N. Main St.
The tax increase is due mainly to an increase in grant projects and the development of a park at 52 W. Ferry St., according to borough Manager John Burke. The borough bought the lot for $260,000 after a natural gas explosion razed a 200-year-old house on the site in February.
The expense will be offset by a $72,228 grant from Bucks County. Also offsetting the purchase price and the cost of development will be a $200,000 donation from developer George Michael as well as more grant money the borough hopes to win from the state.
A proposed increase also exists in the funds budgeted for the Lambertville-New Hope Ambulance and Rescue Squad, which would rise from .125 mills to .25 mills "because they were under-funded," said council President Richard Hirschfield. "They’ve been getting a real workout the last few years."
The total represents an increase of $7,286 in the borough’s annual contribution.
"The New Jersey-based squad continues to provide exemplary service and rapid emergency response within the borough, especially in times of natural disasters," Mr. Burke wrote in his budget report.
The squad has dealt with a number of serious emergency situations since 2004. Hurricane Ivan flooded the region in September 2004, and almost seven months later, the town had to deal with another major flood. In February 2005, a contractor struck a natural gas line and caused the explosion on Ferry Street that left five people homeless.
Mr. Hirschfield said another increase is represented in the funds allocated for street lighting, which would rise from .5 mills to .75 mills. The borough installed additional streetlights last year, which contributed to the expense. Also last year, the borough agreed to pay part of the light bill for two developments, Riverwoods and Village II.
The total proposed budget for 2006 is $3,598,967.72, an increase of $704,960 over 2005. The proposed tax rate is 9.725, an increase of .35 mills over 2005. One mill is equal to $57,288.
The total of 9.725 mills, or $577,360, would be divided among five categories. The general fund would equal $417,000; the fire protection fund would equal $88,932; the street lighting fund would equal $42,034; the library fund would receive $14,822; and the ambulance and rescue fund would receive $14,572.
The main source of revenue is the real estate tax, which is estimated to be $577,360 in 2006, an increase of $76,245 over 2005.
Revenue is derived from several sources. Tax sources include earned income tax, which is projected to be $425,000; a real estate transfer tax, $205,000; and a business privilege tax, $95,000.
Non-tax sources of revenue include grants in the amount of $799,045; parking meters, $365,000; motor vehicle code fines, $311,400; rent, $120,250; permits, $99,400; and business licenses, $41,960.
Expenditures include $43,350 for general government; $21,058 for the fire marshal’s office; $74,300 for code enforcement; $31,100 for planning and zoning; $58,057 for the Visitor Center; $321,659 for Public Works; and $10,500 for highway maintenance.
The Public Works Department is budgeted to purchase a new pickup truck and plow for $24,214. Also, the department’s budget includes $2,327 to replace depleted emergency management supplies, which were used up in response to floods.
One of the largest expenses is the Police Department’s budget of $1,130,855. Nine salaries total $508,563, broken down as $83,200 for Chief Rick Pasqualini, $67,550 for the position of sergeant, a total of $128,262 for two corporals and a total of $229,551 for five patrolmen.

