Special hearing to be called later this month
by James McEvoy, Managing Editor
PLUMSTED — Due to possible changes in the Plumsted municipal budget — which township officials believe will not impact the tax levy — a second public hearing on the 2014 spending plan is expected.
At a special meeting April 24, officials said changes could be finalized in time for the May 7 meeting, but a more likely scenario entails an additional special meeting being heldlater in the month.
On March 13, the committee introduced a $3.45 million budget, which if ultimately adopted, would raise the municipal portion of the average property owner’s tax bill by $28.
Under the proposed budget, which falls under the 2 percent tax levy cap, an owner of a home assessed at the township average of $276,048 will pay $635 in the municipal portion of their property taxes, an 3 percent tax increase. The tax rate is increasing to 23 cents per $100 dollar of assessed valuation ($2,760 x .23 = $634.80).
In 2013, the owner of the home assessed at the township average of $275,900 paid $607 in the municipal portion of their property tax.
Assemblyman Ron Dancer, who serves as the voluntary business administrator, said the upcoming hearing would only involve the amendments. The committee could adopt the budget thereafter.
”Our overall goal was to keep the budget the same, but we’re working with some changes within line items,” Mr. Dancer said, noting than a 10 percent change in any budget line item constitutes an amendment requiring an additional advertised hearing.
After the public hearing, during which no residents spoke on the spending plan, June Madden CFO, broke down the factors that would necessitate the additional hearing.
In addition to pension and health benefits, the township may have to expend as much as $14,000 to demolish a foreclosed home downtown.
Ms. Madden noted currently there is only $900 in that specific line item.
Following the meeting, Mayor David Leutwyler said he hopes the bank will step up to “do the right thing.”
Noting it’s the bank’s responsibility to maintain the property, the mayor said the town might have to step in if it’s determined the home presents a “health and safety issue.”
Another budget change is due to Microsoft no longer supporting the XP operating system. Ms Madden said the change would necessitate the township to replace 12 computers instead of the original six budgeted.
Specifically, she said she would like to see approximately $8,000 more in the capital line item for computers. She noted the purchase would be outside of the cap.
Township officials stated the spending plan actually includes $28,711 less in appropriations than last year, however, an additional $89,000 will need to be raised to support the budget. In addition, the 3 percent increase includes debt service, which is not subject to the 2 percent cap.
According to a budget summary provided by the township, the salary and wages portion of the township’s operating expenses is expected to increase by approximately $9,500. Other operating expenses are proposed to jump by over $207,000.
Capital improvement costs are the most significant proposed decrease at $144,026 from 2013, while debt service is also slated to decrease by approximately $97,000. The reserve for uncollected taxes is nearly flat with just over a $50 decrease, and deferred charges and other appropriations are expected to decrease by just over $3,700.
After the introduction Mr. Dancer said a significant factor in the budget was the fact the municipality is losing $140,000 in transitional aid, which was included in the 2013 budget of help offset tax appeals, which were a significant factor in last year’s budget, which resulted in the average tax payer paying $55 more in municipal taxes than in 2012.
During a budget presentation during the special meeting, Committeeman Jack Trotta noted the fact that the reassessment was effective and that the ratable base had been stabilized.
From 2012 to 2013 the township lost nearly $270 million in its tax base a result of the reassessment. Due to the reassessment, the average assessed value of a home in Plumsted in 2013 was $275,900, compared to $372,067 in 2012.
Previously, Committeeman Trotta noted the township had to absorb the impact of the tax appeals, necessitating the municipality to borrow $145,000 and $282,000 for refunds in 2011 and 2012, respectively.
Mr. Dancer said previously that there have been “very few tax appeals” this year.

