You can calculate the tax impact
By Gene Robbins, Managing Editor
With the police issue settled, the Township Committee passed its $28.1 million budget for 2011 on May 10.
The budget would raise and spend $45,000 more than 2010 an increase of about two-thirds of one percent but the money to be raised through local property taxes is about $330,000 more than last year, about two percent.
It’s difficult to calculate a tax rate effect. Last year the local government cost property taxpayers about $430 for each $100,000 of assessed value (43 cents per $100 value). This year the rate should be slightly more than 30 cents per $100 assessment, or $303 for each $100,000 in value.
However, the first township-wide revaluation in years has increased the value of property in the township. Tax officials estimate the increase was 40-45 percent, valuing the average house at about $363,575 for tax purposes. That’s an average rise of more than $100,000.
The Township Committee also passed a reduction in the open space tax levy. The rate will decline to 2.8 cents per $100 assessed value, but should almost the same amount as the current levy of four cents per $100.Police salary will take $6.35 million in the budget; public safety will take 26.5 percent of the total budget, the largest single cost.
The budget will use less operating surplus ($2.8 million), with another $200,000 coming from capital budget surplus. It’s about as much as can be touched safely, said Township CFO Nancy Haberle.
One reason the township was able to hold down the budget was contract concessions by workers. Last year white-collar workers accepted a reduction in the work week to 37.5 hours, and other employees accepted a wage freeze.
Effective a year ago they’re paying 1.5 percent of their salary toward skyrocketing health costs, which Ms. Haberle estimated at rising 12 percent this year. Those contributions aren’t directly seen in the budget.
The budget also reflects $200,000 less in police salaries, which will lead to the layoff of the three least-senior patrol officers.
Salaries and wages will take almost $12 million of the $28.1 million budget. The budget estimated a payroll of 150 fulltime and 26 part-time workers, down from 157 fulltime and 27 part time in 2010.
The township will also pay $1.5 million for police and fire pensions, up $250,000 in the year, and $688,741 (up from just under $500,000) for other employees’ pensions.
Budget numbers change in the finance office, for instance, but it’s pretty much of a bookkeeping function, without adding or subtracting positions, said Ms. Haberle. It will mean replacing longtime people who left with newer employees at the bottom of the pay scale. For instance, in the public works department, one person retired as of May 1 and another has left; they’ll be replaced with less experienced workers, said Township Administrator Michael Merdinger.
A municipal court clerk of 30 years has retired, and will be replaced by someone at the lower end of the pay scale, he said.
On the revenue side, the sale of a liquor license that netted almost $389,000 for coffers helped balance the budget.
The capital budget includes two recommended items, a public works truck and Lattimore computer for police.
Road projects include work on Claremont Road, as well as overlay Hamilton Road, for which state aid has been granted.

