LAWRENCE: Tax rate could show a decrease

For the first time in more than a decade, Lawrence Township property owners are in line for a decrease in the municipal property tax rate

By Lea Kahn, Staff Writer
   For the first time in more than a decade, Lawrence Township property owners are in line for a decrease in the municipal property tax rate, based on the proposed $43.1 million municipal budget for 2014 unveiled before Township Council Tuesday night.
   The proposed budget, which sets the municipal property tax rate at 53 cents, means the owner of a house assessed at the township average of $281,970, would pay $1,486 in municipal property taxes. This is the first municipal budget to be prepared following a township-wide property reassessment conducted last year.
   The 2013 municipal property tax rate was 94 cents, which meant the owner of a property assessed at the then-township average of $160,262 paid $1,507 in municipal property taxes. The difference between the two tax rates translates into a $21 savings for 2014.
   Although a year-to-year tax rate comparison was not available, Mr. Krawczun said the reduction is attributable to an increase in the surplus fund, which led to an increase in the amount of surplus funds being applied as a revenue source in the budget. The township also is “not seeing such a large contraction in some areas of revenue,” he added.
   Mr. Krawczun said the proposed $43.1 million municipal budget for 2014 is $330,480 more than the 2013 spending plan of $42.9 million.
   ”Service demands on the municipal government remain at the same need or higher in 2014, when compared to previous years,” he said. The township is responsible for serving more than 33,000 residents — plus thousands of visitors and employees of local businesses — with police, fire and emergency services around the clock, he added.
   ”There are 200 lane miles of roads to be maintained and 1,000 acres of parks. There are planning, health, recreational and financial administration all needing to be provided. We do not retreat from the responsibility of implementing each of these services, but continue to seek innovative methods to improve the efficiency of delivery,” he said.
   On the revenue side, Mr. Krawczun said, the proposed budget calls for using $3.4 million in surplus funds as a revenue source. This is $100,000 more than was used in the 2013 budget. Surplus accounts for 8 percent of total budget revenues for 2014, he said.
   ”The amount of surplus regenerated from 2013 fiscal activity was $4.2 million,” Mr. Krawczun said. “I am pleased to report for the first time in six years, the amount of surplus regenerated was more than the amount used as revenue in the budget.”
   Miscellaneous revenues make up 34 percent of the budget revenue for 2014, Mr. Krawczun said. This includes licenses, fees and permits, plus Municipal Court fines. It also includes contributions from Rider University and The Lawrenceville School, which total $95,000. State aid, which is another miscellaneous revenue, will remain flat at $3.9 million.
   Property taxes make up 56 percent of total anticipated revenues, Mr. Krawczun said. The amount to be raised by taxes is $24.1 million, which is $12,000 less than the statutory 2-percent cap on increases to the tax levy, he said.
   ”Important to note is that the current change in assessed values (from $2.5 billion in 2013 to $4.5 billion in 2014) resulting from the revaluation of taxable property does not in any way create a windfall of tax revenue. Current taxes are 56 percent total anticipated revenues,” he said.
   Turning to the spending side of the proposed budget, Mr. Krawczun said major increases include $45,000 for increased costs in the reimbursement for municipal trash pickup for apartment complexes, and $225,000 in the capital improvement fund. That money will be used to increase cash payments, reducing the issuance of debt.
   There are decreases in municipal spending, as well. The township is saving $358,000 in salaries, through a combination of the balance of savings from privatizing the Police Department dispatching services, plus lower salaries for newly hired employees to replace retirees. It also includes labor contract adjustments.
   Mayor Cathleen Lewis and Councilmen Stephen Brame and Michael Powers praised Mr. Krawczun and the administration for the proposed budget. Mayor Lewis said that Lawrence Township “finds ways to do more with less” and is able to tighten its belt when there do not appear to be any more notches.
   Mayor Lewis said she hopes that township residents will be pleased that that the average municipal property tax bill will be going down.
   Township Council will begin its review of the budget at its March 18 meeting. The 6:30 p.m. meeting will be held in the Township Council meeting room at the Municipal Building.