Overall spending to decrease by $1.2 million
By: Jake Uitti
MONTGOMERY The Township Committee introduced a proposed $30.1 million municipal budget Thursday, which represents a decrease from last year’s $31.3 million.
May 18 is slated as the date for the public hearing and vote on formal adoption.
"This budget is very aggressive," Chief Financial Officer Randy Bahr, said. "But I am comfortable with it and our use of our surplus."
The township was able to decrease the total budget by cutting about $3 million from the capital improvement plan. This year, the township slated about $2.1 million for capital improvements, which includes such projects as road and park maintenance.
In 2005, about $5.1 million was put into capital improvements.
The municipal tax rate is expected to remain at 22.5 cents per $100 of assessed value. The owner of an average home in Montgomery, which is assessed at about $514,000, would pay about $1,156.50 in municipal taxes in 2006, the same as in 2005.
"The goal was not to have a municipal tax increase," Mr. Bahr said. "And we were able to achieve that. We went though the individual departments and really took a strong look at what was necessary."
Of the $31.3 million, about $8.5 million is expected to come from property taxes, about $2 million from state aid and about $13.7 million from the township’s surplus. Other revenues include fees, permits and grants.
Large anticipated increases in the 2006 municipal budget include a 146 percent increase in pensions, and 12 percent increases in health benefits, insurance and the reserve for uncollected taxes.
The budget also includes funds for replacement police officers, new recreation programs, road improvements, new roads and traffic light installation.
"This year may be the last year we can have no tax increase," Mayor Louise Wilson cautioned.
Next year, however, Township Committee members said there should be increased revenue from new ratables including the Sharbell and Madison Marquette developments.
The total tax rate this year including school, municipal, county, open-space, library and fire district taxes will be about $2.36 per $100 of assessed value. That amount is still just an estimate because the county tax rate will not be known until the end of May, Mr. Bahr explained,
Committeeman John Warms, despite this year’s municipal tax decrease, said, "We have to take a serious look at how we’re going to increase revenues. We have to sit down with the school board and come up with a plan. The burden that’s being put on the taxpayer in the township is absurd."

