The Council introduced the proposed budget earlier this week, which calls for a 3 percent increase in the municipal tax rate.
By: Lea Kahn
Township Council voted unanimously April 5 to introduce Lawrence Township’s proposed $38.2 million budget, which calls for a 3 percent increase in the municipal tax rate.
The 2007 spending plan, which is subject to a May 15 public hearing before the council takes final action, carries a 2-cent property tax rate increase from 65 cents per $100 of assessed value to 67 cents.
This means the owner of a house assessed at the township average of $164,400 would pay an additional $33 in municipal property taxes $1,101 for 2007, as compared to $1,068 last year.
When Municipal Manager Richard Krawczun unveiled the proposed budget in January, it carried a 3-cent tax rate increase. An infusion of $103,335 in additional state aid, combined with an additional $166,197 from the township’s surplus fund, shaved a penny off the tax rate.
Mayor Gregory Puliti expressed satisfaction with the proposed budget.
"I am very satisfied with what I think is a very austere budget that provides (municipal) services at the level that residents expect," Mayor Puliti said. "It is a very modest tax increase."
Township Councilmen Rick Miller and Michael Powers said they were pleased that money is being returned to taxpayers, through an increase in state aid and by pumping more surplus funds into the budget as a revenue source.
Councilwoman Pam Mount noted that a 2-cent tax rate increase is "very conservative." She commended the administration for holding the line on the tax rate increase.
"I am very happy that all the council members are on the same page" and agreed to use more budget surplus funds to reduce the municipal property tax rate increase, Councilman Mark Holmes added.
The proposed 2007 budget increased by $1.1 million over last year’s budget. Increases in the cost of salaries, pensions, trash collection, utilities and the reserve for uncollected taxes accounted for the budget increase.
The reserve for uncollected taxes is required by the state. The township collects property taxes for the Lawrence Township public school district and Mercer County, as well as for itself. The reserve is used to cover the amount of money the township must turn over to the school district and the county, regardless of the tax collection rate.
Revenues to support the budget come from four sources surplus funds, miscellaneous revenues, current property taxes and receipts from delinquent property taxes.
The budget includes $5.9 million in surplus funds as a source of revenue, which is the same amount of surplus funds used in last year’s budget. When the township closed its books Dec. 31, it had $9.4 million in surplus funds.
The township expects to generate $13.2 million in miscellaneous revenues, including fees for alcoholic beverage licenses, business licenses, fees and permits, Municipal Court fines and costs, recreation program fees and hotel and motel room taxes.
Municipal property taxes are expected to produce $18.3 million in revenue. Township officials anticipate collecting $768,000 in delinquent, or unpaid, property taxes from prior years.

