BY LARRY HLAVENKA JR.
Staff Writer
HOWELL – Despite confidence that they would be able to reduce a projected municipal tax rate increase of 7.6 cents per $100 of assessed valuation, municipal officials’ hopes have been dashed.
The members of the Township Council had looked to pare the projected tax increase following the introduction of the 2006 municipal budget on May 23.
On June 13, the council members discussed final amendments to the budget but they did not remove any expenses.
The council was expected to hold a public hearing and to adopt the $40.3 million budget on June 20. The 2005 municipal budget came in at $36.9 million, so this year’s increase amounts to $3.4 million.
With the municipal tax rate rising from 45.6 cents to 53.2 cents per $100 of assessed valuation, the owner of a home assessed at $200,000 will pay $1,064 in municipal taxes in 2006, up from $912 in 2005. The owner of a home assessed at $300,000 will pay $1,596 in 2006, up from $1,368 in 2005. The owner of a home assessed at $400,000 will pay $2,128 in 2006, up from $1,824 in 2005.
The tax levy calls for $15.6 million of the total budget to be raised by the collection of local property taxes.
The municipal tax is one portion of a homeowner’s overall property tax bill. The tax bill also includes K-8 school district taxes, Freehold Regional High School District taxes, Monmouth County taxes and several other assessments.
On May 23, the council introduced the budget as officials stressed their displeasure with the increase.
Mayor Joseph DiBella said the introduction was more a matter of statutory requirements, rather than approval of the expenditures.
“We are forced to introduce it despite a litany of items for our attention,” he said at the time. “Right, wrong or indifferent, we need to introduce it. This does not bind anyone of us to any final position.”
The mayor also said, “people are begging for tax relief, we need to do something.”
However, it seems as though relief will not come.
DiBella lamented that fact, but stressed that officials are doing their best to provide services while keeping a rein on costs.
“We have reduced the size of our work force, cut spending and in spite of that, I’m not happy,” the mayor said. “I have more frustration because of the total tax levy being considered, almost 5.5 cents is outside of the control of the municipality. We are suffering from the fact the state government will not address property tax reform.”
One area of the budget that is seeing a large increase this year is what Howell must pay to fund pensions for public employees. Over the past few years the state government has shifted more of the cost of the public employees’ pensions to municipalities – and officials in other towns have indicated that the shift in payments and the increases will continue through 2009.
According to the budget appropriations, Howell’s cost to fund public employees’ pensions will increase from a $51,167 payment in 2005 to a $145,035 payment in 2006. Howell’s cost to fund police pensions will rise from a $370,827 payment in 2005 to $739,521 in 2006. The combined increase to Howell taxpayers this year of those two line items is $462,562.
The mayor said he appreciates the work of the public employees, but he implored the state government to address the “astronomical” sums of money being spent on pensions.
“There is no group of individuals more entitled to a pension than our policemen and public employees – they deserve a world class pension,” DiBella said. “[Pensions] just need to be more in line with what an average Howell resident would receive. We have an antiquated system that costs people in Howell.
“There needs to be statewide pension reform. We’re all being punished because the state government will not deal with the issue. They care about many special interest groups. I care about one special interest group – the residents of Howell.”