Township introduces 2007 budget

By: Rebecca Weltmann
   PLUMSTED — The Township Council voted unanimously to introduce a proposed budget of about $3.7 million — down from last year’s budget of $3.8 million.
   At a tax rate of 9 cents per $100 of assessed value, and the average home assessed at $386,000 (up from $180,000 after a revaluation), taxpayers can expect a new municipal tax bill of about $347.40. Last year’s municipal tax bill was $216 for a home assessed at the 2006 township-wide average.
   Mayor Ron Dancer said that while he’s pleased with the new budget, it has not been an easy process. After undergoing a revaluation process, the average home assessment figure has gone up, so the tax rate has gone down.
   "It’s certainly a very tight budget, and the tax rate reflects that," Mayor Dancer said. "We didn’t want to cut the tax rate below what it’s been historically because I think that sets the township up for a future increase. We’ve just had it stable."
   The last time Plumsted saw a 9-cent municipal tax rate was in 1987, he added. Since then, the municipal tax rate has fluctuated between 9 and 12 cents.
   Plumsted’s 2007-08 budget is less than last year’s by almost $100,000. The reason for the drop is that the township looked harder at the numbers and made several cuts in the interest of savings, Mayor Dancer said. The operating expenses are down $49,280 and the capital expenditures are down by $175,667, he said.
   He added that the total amount to be raised by taxation is $985,401. Of the 9-cent increase, he said that only 3 cents actually goes into the municipal operating budget.
   "The other 6 cents goes into what we call the reserve for uncollected taxes," Mayor Dancer said. "The township has to provide for 100 percent of the school taxes, the fire taxes and the county taxes, so we have that reserve available in case we have people that don’t pay their taxes. The municipal budget is about 6 percent of the total property tax bill. School tax bills are 70 percent, the county tax is 17 percent, the fire tax is 5 percent and the open space trust fund is 2 percent. That’s how your property taxes are broken down."
   In essence, of the $985,401 to be raised by taxation, $623,972 goes towards the reserve for uncollected taxes while just $361,429 goes toward the municipal operating budget.
   "Some people’s taxes will go up, some will go down and some will remain about the same," Mayor Dancer, referring to the effect of the revaluation. . "It’s just a rule of thirds when it comes to taxes. We’re looking for stability and predictability with this budget and we felt given the new values in the township that we could have tax stability and predictability with a 9-cent tax rate, even though it’s the lowest tax rate in the township’s history."
   A public hearing is set for May 2, 2007 at 8 p.m. in the Municipal Building.