During the unveiling of Jackson’s 2015 municipal budget, Business Administrator Helene Schlegel emphatically described the township as a “financially sound institution.”
Schlegel’s assertion, which she made as part of a budget presentation during the April 26 Township Council meeting, stems largely from what she described as a systemic change in the way the township has gone about spending taxpayer dollars.
“The township continues to maintain a businesslike approach in the area of municipal finance. This requires making careful and often difficult decisions today, while bearing in mind the impact on future years,” Schlegel said.
Officials have proposed a $41.6 million budget that will be supported in part through the collection of $30.3 million in local property taxes.
The proposed tax levy represents a more than $545,000 increase from the $29.8 million tax levy in 2014.
The tax levy is the total amount of money to be collected from residential and commercial property owners to support the operation of the township this year. Schlegel said the proposed tax levy for 2015 represents a 1.83 percent increase, which is below the state-mandated 2 percent cap on the amount the tax levy may increase from one year to the next.
She said the 1.83 percent tax levy increase did not include “tricks of the trade” such as taking an exemption for health care or deferring the payment of school taxes due to the Jackson School District.
“I would love to take credit for the town being in this great financial situation, but the finance department and the governing body have done a tremendous job,” Schlegel said. “This is not the norm.”
The budget proposes an increase in the municipal tax rate from 44.8 cents to 45.5 cents per $100 of assessed valuation. The increase in the tax rate will have a different impact on each property owner depending on the assessed value of his or her home and/or property.
In 2014, the average home in Jackson was assessed at $323,257, and the owner of that home paid about $1,448 in municipal taxes.
This year, the average home in Jackson is assessed at $325,216. If the budget is approved as proposed, the new tax rate would mean the owner of that home will pay $1,480 in municipal taxes, an increase of $32.
In a different example, if a Jackson home that was assessed at $300,000 in 2014 is still assessed at $300,000 in 2015, the owner of that home will see his municipal tax rise from $1,334 to $1,365.
Jackson’s total operating expenses will drop from $29.9 million in 2014 to $29.8 million in 2015, according to the budget. Capital improvements will increase from $100,000 in 2014 to $110,000 in 2015.
“The 2015 budget is designed to achieve a fundamental goal: to provide the level of service the community expects while operating in a fiscally responsible manner and balancing revenues generated against controlled expenditures,” Schlegel said.
Some of the other goals that Schlegel said officials are looking to achieve with the 2015 budget include maintaining labor standards and workplace safety, and ensuring that public services continue for all residents.
“The driving principles guiding this budget are living within our means, creating a more intensive customer-centered culture and supporting high performance and accountability in our organization,” she said.
Officials will use $2.65 million from the township’s surplus funds (savings) as revenue in the 2015 budget. In 2014, the budget included $2.2 million of surplus as revenue.
Schlegel said she is cautiously optimistic the budget heralds a brighter fiscal future for Jackson.
“We are just starting to see a recovery,” she said. “We are not really there yet, and we still need to be extremely careful with our spending.”
A public hearing on the municipal budget will be held on May 26.