Upper Freehold budget to increase average tax bill by $93

Two-cent tax-levy increase compensates for reduction in other revenues

BY JANE MEGGITT Correspondent

Ahouse assessed at the Upper Freehold Township average of $492,900 will see its tax bill increase a total of $700 this year.

The township just passed a municipal budget that would increase the average homeowner’s taxes just under 2 cents per $100 of assessed value, from $636 to $729. Although the final tax rates have yet to be determined by the Monmouth County Board of Taxation, the average homeowner’s school district tax is expected to increase $532, to $7,058, and county tax will rise $74, to $1,336.

The township’s budget for 2010 totals $5,184,000, down $392,586 from last year. At the June 17 Township Committee meeting, the governing body voted 4-0 to pass the municipal budget. Deputy Mayor Lori Horsnall Mount was absent.

Township auditor Michael Cesaro said the budget is normally adopted by mid- June, but these are “extraordinary times.” He said activity in Trenton has impacted everyone, and taxpayers’ pocketbooks. Cesaro noted that Gov. Chris Christie has proposed a 2.5 percent cap on annual municipal spending. The current cap is 4 percent. If the Legislature approves decreasing the spending cap, the state will put the question to voters in a November referendum, he said.

The municipality plans to raise 36.9 percent of the revenue needed for its budget from the tax levy, up $177,376 from last year to $1,915,067. Fund-balance anticipated revenue accounts for 33.6 percent of the budget, dropping $310,000 to $1,740,000 in 2010. State aid accounts for 10.1 percent, or $522,027, a loss of $156,990 from last year. Special item revenue accounts for 7.6 percent of the budget, mostly in the form of grants. This revenue has increased $190,054 to $392,846 in 2010. Delinquent tax receipts account for 7.2 percent, or $375,000 of the budget, which is the same as last year. Miscellaneous local revenues total 3.2 percent, down $80,440 from last year to $168,060. Uniform code construction fees have also decreased $14,000 from last year to $71,000.

According to the budget presentation, construction fees have dropped from nearly $500,000 at the height of the building boom in 2004 to $72,761 last year, although the 2009 budget anticipated $85,000 in fees.

In the same time period, the tax levy has increased from $1,043,670 in 2004 to $1,915,067 this year.

The governing body did not raise municipal taxes in 2004, 2006, 2007 and 2009.

Rates went up 2 cents in 2005 and 2008, and just under 2 cents this year.

Last year the township went to a four-day workweek with corresponding salary reductions for employees.

Areas of significant expenditure decreases last year, according to Chief Financial Officer and Township Administrator Dianne Kelly, include electricity use, from $40,268 in 2008 to $37,074 in 2009, and telephone expense, from $27,715 in 2008 to $25,551 in 2009.

Total utility expenses decreased from $166,190 in 2008 to $133,370 in 2009.

Kelly attributed the decreases to the shorter workweek, lower fuel costs, and the animal control truck not being on the road since the September 2009 death of animal control officer Mary Klink.