By Nicole Malcazan and Joanne Degnan
MILLSTONE — The Township Committee had adopted a $5.9 million budget for 2012 that spends 3.3 percent less than the prior year, but still requires a local municipal tax increase of $241 for a home assessed at the township average.
The overall property tax bill Millstone residents receive, however, will remain flat because the municipal tax increase is offset by an average $300 decrease in school taxes, according to a PowerPoint presentation prepared by Business Administrator Tom Antus for the June 20 public hearing.
The 2012 property tax bill — which collectively includes school, county, municipal, fire and open spaces taxes — is projected to total $11,716 for a home assessed at the new township-wide average of $449,756. This is about $1 less than the overall property tax bill for 2011 when the average property assessment was $511,000. (The municipality reassessed properties in November).
Municipal spending has decreased 19.4 percent over the last five years and is down 3.3 percent from 2011, Mr. Antus said. However, the loss of state aid and a dwindling budget surplus is forcing an increase in the municipal tax rate to 16.5 cents per $100 in assessed value.
In a June 27 phone interview, Mr. Antus broke down the increase as follows. The recent reassessment of Millstone properties, which resulted in overall lower property values, meant the tax rate had to be raised from 9.8 cents to 11.5 cents in order to collect the same amount of money as before. Then the decline in state aid, coupled with the need to wean the township of its reliance on the surplus account, is responsible for the rest of the increase to 16.5 cents.
Under the new projected tax rate, the municipal portion of property tax bills will rise from $501 to $742 for a home assessed at $449,756.
The township has made $207,651 in spending cuts in the 2012 budget that vary by department and range from 5 percent to 27.6 percent. The town had 41 employees in 2007, compared to 29 today.
Since 2011, there have been four retirements and three resignations. Funds for only four of those seven positions are in the 2012 budget, providing a net salary and health benefits savings of $196,000.
The reductions have been necessary because the township cannot rely any longer on its surplus revenue account to balance the budget, Mr. Antus said. Running a tighter ship means there’s less surplus left over to help balance the next year’s budget.
”When you cut your operating budget by $1.4 million over five years . . . there’s nothing leftover to roll into surplus, and it becomes a self-fulfilling prophecy that you are going to have budget problems in the next year,” Mr. Antus said.
Mr. Antus predicted that despite the increase in the municipal tax rate, Millstone still would retain its distinction of having the lowest municipal local purposes tax of any of the 53 towns in Monmouth County in 2012.
Neither the Township Committee nor members of the public made any comments during the public hearing. The committee voted 4-0 to adopt the budget with minor technical amendments. (Township Committeeman Gary Dorfman was absent).
The Township Committee also introduced two bond ordinances on June 20 for road projects and the purchase of Public Works equipment. The public hearing and adoption vote for these ordinances is set for 8 p.m. July 18.
The first ordinance would authorize issuing $356,250 in bonds or notes to leverage $700,000 for road repair projects. The rest of the funding comes from the township budget (the required 5 percent bond down payment of $18,750) and two state grants collectively totaling $325,000.
The roads to be repaired are Schoolhouse Road (between Stage Coach and Backbone Hill roads); Brookside Road (between Paint Island Spring and Stage Coach roads); and Disbrow Hill Road (between Battleground and North Disbrow Hill roads).
The second bond ordinance would authorize $95,000 in debt for the purchase of $100,000 worth of DPW equipment, including a backhoe. The total appropriation includes the required 5 percent down payment for the borrowing.

