Hopewell Borough budget is adopted

At the new tax rate, the average property owner in the borough will pay $1,220 for municipal services, as compared to $1,107 in 2005

By Aleen Crispino
   On May 18, Hopewell Borough Council members voted 4-0 to adopt a $2.15 million budget for 2006, down 5.6 percent from last year.
   Council invited public comment before the vote at its special budget meeting May 18, but none was received.
   Voting in favor were Councilmen Paul Anzano, David Knights, David Mackie and Schuyler Morehouse. Councilmen Robert Lewis and Mark Samse were not present.
   The budget, introduced on April 17, contains no layoffs or program cuts and will increase the municipal portion of the average homeowner’s property tax bill by about $113.
   The property tax increase can be explained by the county-ordered revaluation of property in Hopewell Borough, which more than doubled the value of the average home — from $197,719 in 2005 to $451,873 after the recent revaluation. Property revaluations also were done in Pennington Borough and Hopewell Township. The last property revaluation in Hopewell Borough took place 10 years ago.
   This year’s municipal tax rate is estimated at 27 cents per $100 of assessed value, said Judie McGrorey, chief financial officer for Hopewell Borough, in April. The new rate is less than half of the municipal tax rate for 2005, which was 56 cents per $100 of assessed value.
   When property values go up, the tax rate goes down, said borough Administrator/ Clerk Michele Hovan, in April, assuming the total budget stayed at or near the previous level of spending.
   At the new rate, the average property owner in the borough will pay $1,220 for municipal services, as compared to $1,107 in 2005.
   The borough tax makes up only one portion of the total tax bill for borough property owners. Other taxes are assessed by the school district, the county and the fire district, as well as an open space preservation tax of 1 cent per $100 in property value.
   "Putting this budget together has been a difficult challenge," said Ms. Hovan in April. "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 Hopewell Township for police services through an interlocal agreement. The borough and township have been at odds over how much Hopewell should be paying Hopewell Township for police services.
   A state consultant, Jersey Professional Management, has been hired by the borough and township to study the agreement. The consultant’s report, expected in mid-summer, will make recommendations regarding the terms of a future, multiyear agreement, but does not affect the 2006 budget.