ALLENTOWN — Taxpayers in Allentown could see a $100 increase in their municipal tax bill this year after the Borough Council adopted the 2015 budget.
On April 28, council members unanimously approved the $2.26 million spending plan that will be supported in part by the collection of $1.52 million in taxes from Allentown’s property owners.
Borough officials will use $230,000 in surplus funds (savings) as revenue in the 2015 budget. The borough will receive $131,595 in state aid in 2015, the same amount as 2014.
The municipal tax rate has increased from 76.5 cents to 79.4 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 home and/or property.
In 2014, the average home was assessed at $285,971, and the owner of that home paid about $2,187 in municipal taxes.
According to the Monmouth County Board of Taxation, in 2015 the average home in Allentown is assessed at $289,233. Under the new budget, the owner of that home will pay $2,296 in municipal taxes this year — an increase of $109.
In a different example, if an Allentown home that was assessed at $250,000 in 2014 is still assessed at $250,000 in 2015, the owner of that home will see his municipal tax rise from $1,912 to $1,985.
Operating expenses will drop from $908,799 in 2014 to $839,397 in 2015, according to the budget. Capital improvements will decrease from $50,000 in 2014 to $25,000 in 2015.
According to Chief Financial Officer June Madden, municipal taxes represent about 28 percent of a property owner’s total tax bill. Other entities supported by taxpayer dollars include schools (59 percent of taxes paid), Monmouth County (12 percent of taxes paid) and open space acquisition (1 percent of taxes paid).
— Andrew Martins