Council unanimously approved the proposed $38.9 million
municipal budget for 2007 this week
By: Lea Kahn
Township Council unanimously approved the proposed $38.9 million municipal budget for 2007 at its Tuesday night meeting, following a public hearing on the spending plan.
There was no comment from the five people in the audience.
The 2007 municipal budget carries a 2-cent property tax rate increase from 65 cents per $100 of assessed value to 67 cents. 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 thanked Mr. Krawczun for his "hard work" in preparing the budget, which the mayor described as " very austere."
"Somehow, you pulled us through," Mayor Puliti said. "This is a very austere budget, (but) it keeps the level of services that township residents expect. It’s a nice piece of work."
The proposed 2007 budget increased by $1.7 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 $6.1 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 $13.9 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 million in revenue. Township officials anticipate collecting $768,000 in delinquent, or unpaid, property taxes from prior years.