After a 30 minute public hearing, the Township Committee unanimously adopted a $25.7 million budget for the 2013-2014 fiscal year that will require residents to pay an extra $44 in property taxes.
By Charley Falkenburg, Staff Writer
MONTGOMERY — After a 30 minute public hearing, the Township Committee unanimously adopted a $25.7 million budget for the 2013-2014 fiscal year that will require residents to pay an extra $44 in property taxes.
The approved 2013 budget includes a .009-cent municipal tax hike, bringing the new tax rate to 32.1 cents per $100 assessed home value. So, homeowners with a house assessed at the township average of $503,000 will pay about $1,609 this year — an increase of about $44 over last year.
This year’s budget is up 1.7 percent largely due to nearly $1 million in mandated cost increases associated with union contracts, health premiums, pensions and Hurricane Sandy relief efforts.
The hike also takes into account the ongoing balloon debt payments from the 2006 Skillman Village purchase as well as three new police cadets that were recently hired.
However, town officials pointed out that despite the increases, overall spending remains below 2005 levels and the township continues to do more with less.
”This was a difficult budget, but we worked hard and came up with a plan that is right for Montgomery,” said Mayor Ed Trzaska. “As always, we prioritized public health and safety services and invested in new police cadets and important road projects.”
Resident Bob Kress was the only member of the public who participated in the debate. His concerns, which were largely focused on the township’s structural budget gap, sparked a half an hour-long conversation with the elected officials.
”Somehow we need to get that structural deficit out of the way and merely cutting, cutting, cutting doesn’t do it — we can’t cut anymore because we’re down to our fundamental services,” he said. “These guys are like gourmet chefs trying to turn out a gourmet meal with Spam.”
Mr. Kress suggested one big tax increase that would essentially amount to about $400 per household, which would require a voter referendum since it would exceed the 2-percent state cap.
”Unless you can close it (the deficit), we’re just kicking the can down the road,” he added.
The structural budget gap — a little more than $1 million — is a result of the township using its surplus to balance nearly have the budget years ago, particularly in 2006-07. This year, only 10 percent of the surplus is used to fund the 2013 budget.
”We’re trying to right some of the wrongs from the past,” explained Mayor Trzaska to Mr. Kress. “We had a big hole to dig out of from what was dug for us in the past couple of decades.”
Although he acknowledged the need to continue working to close the gap, it appeared Mr. Kress’ solution was not the way he had in mind.
”I was very surprised by this request — obviously, the Township Committee doesn’t support this action and I doubt many Montgomery residents do either,” he said. “We will continue to keep taxes as low as possible and listen to the community.”
In lieu of surplus, the 2013 budget uses the tax levy, or amount to be raised by taxation, to fund about half of the budget. The bulk of expenses go toward a combination of health and public safety, debt, construction, engineering, planning and public services.
The only municipal service that would be impacted would be the code department, which would return to full-time due to increased construction activity in the township.