Hopewell Borough budget is introduced

Public hearing on the budget and tax resolution will be held at 7:30 p.m. on May 18 at Borough Hall

By Aleen Crispino
   Hopewell Borough Council voted 4-0 to introduce a proposed $2.15 million budget for 2006, down 5.6 percent from last year.
   Voting in favor were Councilmen Paul Anzano, David Knights, Robert Lewis and David Mackie. Councilmen Schuyler Morehouse and Mark Samse were not present.
   The proposed budget contains no layoffs or program cuts and would increase the municipal portion of the property tax bill by about $113 for the year for the average home.
   "We cut everything," said Borough Administrator/Clerk Michele Hovan of the 2006 appropriations. "It’s a very thin budget. When you factor in the cost of living, we’re operating as close as we can to 2005 levels."
   The budget has been in preparation for the past several months, said Ms. Hovan, and is a collaborative effort involving her, Chief Financial Officer Judie McGrorey and the borough’s Finance Committee.
   An additional factor in this year’s budget process has been the county-ordered revaluation of property in Hopewell Borough, as was the case in Hopewell Township and Pennington Borough, as well.
   "The values (in Hopewell Borough) pretty much doubled over last year," said Ms. Hovan. The last property revaluation in the borough took place 10 years ago.
   When property values go up, the tax rate goes down, said Ms. Hovan, assuming the total budget stays at or near the previous level of spending.
   In 2005, the municipal property tax rate was 56 cents per $100 of assessed value. This year’s municipal tax rate is estimated at 27 cents per $100 of assessed value, said Ms. McGrorey. At the new rate, a property owner in the borough whose home is valued at $451,873 (the borough average) would pay $1,220 for municipal services. Before the revaluation, the average borough property was valued at $197,719. At last year’s tax rate of 56 cents per $100, the average property owner paid $1,107 for municipal services.
   Ms. McGrorey said the borough’s tax rate is only "one piece of the pie" that makes up the total property tax bill. The other parts are the school district tax, the county and the fire district taxes, as well as an open space preservation tax, which is 1 cent per $100 in property value.
   "Since Hopewell Borough, Pennington Borough and Hopewell Township have all revalued their property, there could be a slight drop in the county rate," said Ms. McGrorey. "You’ll get that number in June or July," she said.
   "Putting this budget together has been a difficult challenge," said Ms. Hovan. "This budget is fiscally responsible. We’re not adding any new services. With the uncontrollable costs that we’re facing, we’ve exercised much prudence in this preparation."
   Ms. Hovan cited utilities and health insurance as examples of uncontrollable costs.
   Another increase in the 2006 budget is the 10 percent raise — from $318,478 to $349,500 — in the amount the borough pays the township for police services through an interlocal agreement. A state consultant, Jersey Professional Management, has been hired by the borough and township to study the agreement. The borough and township have been at odds over how much Hopewell should be paying Hopewell Township for police services. The consultant’s report, expected in mid-summer, will make recommendations regarding the terms of a future, multiyear agreement and will not affect the 2006 appropriation.
   Copies of the 2006 Municipal Budget for Hopewell Borough are available at the office of the municipal clerk at Borough Hall, Columbia and South Greenwood avenues. A public hearing on the budget and tax resolution will be held at 7:30 p.m. on May 18 at Borough Hall. At that time, council will listen to public comment and vote on whether to adopt the proposed 2006 budget.