By Joanne Degnan
MILLSTONE The Township Committee has adopted a $6.1 million budget for 2011 that spends less money and carries fewer employees than last year, but still requires an annual municipal tax increase of $63 for the average assessed home.
The sluggish economy has caused a decline in the town’s ratable base and a drop in investment income while costs for items such as fuel and employee pensions have risen sharply even though there are fewer personnel, township officials said.
”This has probably been one of the more challenging budgets in Millstone’s history … predominantly due to economic conditions,” Township Administrator Phil Del Turco said at the July 6 Township Committee public hearing on the budget.
Mr. Del Turco said the municipal tax rate is projected to increase 1.25 cents from 8.6 cents to 9.85 cents per $100 in assessed valuation. The tax rate won’t be finalized until the county strikes the tax rate.
Under this budget, which was approved July 6 by unanimous vote, the owner of a Millstone home assessed at the municipal average of $511,000 would pay approximately $503 in municipal taxes for 2011.
Municipal taxes represent only a portion of the total property tax bill. Residents’ property tax bills also include the taxes owed to the school district, the county and the township’s municipal open space fund. The township collects the money for all of these taxing districts, but only keeps the municipal portion of the taxes.
Total property taxes for a home assessed at the township-wide average of $511,000 are expected to be $11,717 in 2011 with school taxes comprising 75.51 percent of that amount, Mr. Del Turco said. County taxes represent 13.86 percent of the total, township taxes represent 4.3 percent, municipal open space taxes represent 2.62 percent, and fire district taxes represent 3.71 percent, he said.
A net reduction of two township employees in 2011 through attrition will save the township $155,000 in salaries, wages and health benefits costs. However, higher expenses for fuel, pensions, health care, capital improvements and other accounts totaling $192,743 negate these savings.
Overall, the $6,129,303 total budget spends $104,194 less than the 2010 budget, continuing a five-year trend of leaner budgets, Mr. Del Turco said. Since 2007, township budgets have shrunk nearly 17 percent, and the number of municipal employees has been reduced by 22 percent.
”We’re trying to run a leaner machine here and make the best use of our resources,” Mr. Del Turco said.
Millstone has received a number of grants that are reflected in the township budget, including $160,000 for the reconstruction of Conover Road; $13,970 for the prevention of alcoholism and drug abuse; a $7,391 recycling grant; and other smaller awards. The township also is applying for a $25,000 federal recreation trail grant and a $250,000 county open space grant, but those still are pending.
The budget earmarks $880,000 for capital improvement projects, including $550,000 for roads. Department of Transportation grants totaling $300,000 will help defray some of that expense.
”We’re going to be trying to make some improvements to the roads; they do need some attention,” Mr. Del Turco said.
In addition to Conover Road, the township is using funds in the current budget as well as authorized debt to make improvements to Battleground Road and Disbrow Hill Road, Mr. Del Turco said.
The main revenue sources that fund the budget are the $1.74 million property tax levy and $1.86 million in surplus funds, which account for 29 percent and 30 percent, respectively, of all funds. The anticipated surplus at the end of 2011 is projected to be $429,449.
The budget’s other revenue categories include $550,000 in receipts from delinquent taxes; $260,000 in uniform construction code fees; $841,000 in state aid; and $866,975 in miscellaneous revenue, such as interest income, fees and fines.
