By Amber Cox, Special Writer
BORDENTOWN CITY — The City Commission has unanimously introduced a budget calling for a 1.9-cent tax rate hike that would cost the average homeowner an additional $47 per year.
The new tax rate would be 81.1 cents per $100 of assessment if the budget is finalized.
The resident living in an average assessed home of $245,981 would pay $1,995 in local taxes.
The budget includes a 2.25 percent salary increase for all township workers, according to Mayor James Lynch, who added the increase is contractual.
The police pension employer contributions are increasing by $3,642, but public employees pension contributions are decreasing by $3,247.
The reserve for uncollected taxes did not change this year. Mayor Lynch said the city usually has a tax collection rate of 96 or 97 percent, but that number has decreased.
"As a result, that money has to be added into the budget and does affect it at the end of the day,” he said.
The reserve for tax appeal refunds decreased by $10,000.
Debt service in the city remains the same for next year.
However, the line item in the budget for gasoline was increased by $10,000 due to the rising fuel costs experienced around the country.
On the revenue side of the budget, the city is looking forward to $3,299 from the cell towers in Gilder Field. Mayor Lynch said the money received is done on a tier-system and the amount of money received each year by the city will increase by the terms of the contract.
"The budget package before us does not allow for any line increases without cuts anywhere else unless we increase the local purpose tax further,” Mayor Lynch said.
Mayor Lynch added the city originally was planning on no increase for the 2012-13 budget year, but uncollected taxes and increases in health benefits, insurance and other areas didn’t allow that to happen.
The public hearing and adoption on the budget will be held May 14.
