Mayor blames state’s raid of energy funds
by James McEvoy, Managing Editor
HAMILTON — Despite decreases in municipal spending, Mayor Kelly A. Yaede has announced a $96.4 million budget, which is set to include a 7-cent tax increase.
Officials announced the increase during a press conference Tuesday afternoon. Mayor Yaede said the budget would be presented to the council later that evening.
The increase in the budget, which meets the 2 percent tax levy cap, will result in the homeowner of a residence assessed at the township average of $135,000 paying an additional $94 a year in local property taxes, according to township officials.
Mayor Yaede laid the blame for the increase squarely at the feet of state government due to taking of energy tax receipts, which she has said has resulted in a loss of $5 million to the township annually since 2010.
Recently, the mayor announced she’s pursuing a constitutional amendment for the return of the funds.
”Despite cutting spending by over $3 million dollars, eliminating 69 full-time positions – an almost 11 percent reduction – since 2008, utilizing shared services and meeting the highest level of state recommend practices for several years, it is beyond frustrating to me that taxes must increase to balance this year’s budget when the fact remains that if state government returned our property taxpayers’ energy receipts to 2010 levels, we could have actually reduced taxes this year,” Mayor Yaede said.
”The municipal government does not have a spending problem,” she said. “There is a revenue issue that Hamilton and other towns are facing and it is beyond frustrating to me as mayor that taxes must increase to balance this year’s budget,” she said.
The mayor noted that by pursuing a constitutional amendment and going straight to voters, they could bypass a potential veto from Governor Chris Christie.
After meeting with Tom Neff, director of the Division of Local Government services, Mayor Yaede was told “to not anticipate movement” on it from the state.
John E. Barrett, township CFO, said that surplus funds had been used in recent years to offset losses in energy tax receipts.
”We’re at the one percent mark for unallocated surplus, and that’s really in my professional opinion really the bare bones that you want to be at,” Mr. Barrett said.
Business administrator John Ricci noted that taxes have increased by approximately 1.7 percent a year since 2008, or a 8.5 percent total over the period.
Mr. Ricci said the increases in Hamilton compare favorably to neighboring communities including Ewing, Hopewell, Lawrence and Trenton, which have seen increases of 43, 29, 32 and 51 percent, respectively.
Another reason for the tax increase, according to officials is that the township had to triple its budget for snow plowing and salting operations. The increase – approximately $1 million more than last year – alone accounted for 2 of the 7-cent increase, officials said. Other increases included an additional $340,000 for township employee pensions.
A major component of this year’s budget is expenditures for police equipment, including an appropriation of $1.36 million to replace the police division’s radio system – a matter that came up during the most recent mayoral election.
Mr. Ricci said they will seek grant funds to offset costs of the radio communication work, but noted the township would move forward with the improvements regardless as to whether such funds were awarded.
An additional $340,000 has been set aside for replacing 11 police vehicles, the mayor added, noting public safety is of “paramount importance” in the budget.
The budget is $3 million less than last year’s with the largest decrease – approximately $1 million – due to employee health benefit savings through negotiations for a new healthcare provider and increased employee contributions, Mr. Ricci said.
In addition, seven positions are being eliminated through attrition, the mayor noted.
Mr. Ricci further noted due to the state’s senior freeze program, a majority of seniors would not experience the tax increase.
The mayor further stated the township will continue to court new businesses and ratables to come into Hamilton, which would further offset future increases.

