South Brunswick officials are reviewing a preliminary municipal budget that would raise taxes by $113 on the average home.
As it stands, the 2014 tab totals $48.8 million and includes a 6-cent increase in the municipal tax rate. That would raise the tax bill by $9.42 per month on a home assessed at the township average of $188,400.
The potential increase would come on the heels of a 2.5 cent hike in the municipal tax rate in 2013.
South Brunswick officials are still in the beginning stages of the budget process. Business Manager Bernard P. Hvozdovic Jr. and Chief Financial Officer Joseph Monzo presented the preliminary budget to Mayor Frank Gambatese and the Township Council during a Feb. 4 workshop meeting.
Hvozdovic said 1 cent of the tax increase is the result of a decrease in assessed value, the need to spend emergency funds, the loss of state tax-court appeals and accumulated leave.
The township is also facing a loss of surplus funds, which totaled $1.85 million at the start of the year — down $1.2 million from a year earlier.
The budget includes $27.7 million in contractual obligations and $17.55 million in statutory obligations, including an increase in the minimum library allotment of $54,000. Another major budget component is utility costs, which include electric, gas, street lighting, fuel, water and sewer, and snow removal, totaling $2.3 million. Snowremoval costs were $270,000 in January alone, officials said.
The township will save $170,000 on health care expenses this year, as employees are now required by state law to contribute to their health insurance costs.
The township expects to save money with four employee retirements this year. Officials said the township has saved $1.8 million over the last four years in retirements. Though officials said 2013 was a good year for code enforcement, its revenue of $2.1 million was still below the 2012 mark of $2.4 million.
Workers’ compensation costs were $127,000 in 2013 for pre-2011 claims. The 2014 budget would allocate $33,000 for these costs.
Pension costs are up $111,000, and debt service is increasing by $251,000.
The proposed utility budget is $58,000, which is also an increase from 2013. Officials said the current rate structure cannot sustain the utility budget, and the administration will consider a rate increase of 2 to 4 percent.
Officials said they would discuss the budget in detail with department heads.
The municipal budget is slated for introduction on Feb. 25. Contact Kathy Chang at [email protected].