Property owners in Metuchen will see a 5 percent increase in their municipal tax bills if the council votes to adopt its proposed budget.
Introduced at the June 15 Borough Council meeting, the $18.3 million municipal budget includes an $11.1 million tax levy — roughly $100,000 more than the amount paid by taxpayers in 2014.
“It’s a very tight budget, even though there’s an increase,” Mayor Thomas Vahalla said.
The 5.33 percent hike represents a $95.68 increase for taxpayers with homes assessed at Metuchen’s average of $191,368, according to Borough Administrator Jennifer Maier.
Comprising a major part of the increase are bonds owed by the borough for work on Borough Hall and the refinancing of other bonds, according to Vahalla. He said officials took advantage of lower interest rates by refinancing.
“In the long term, it creates savings,” he said, adding, “You have to pay the piper somewhere.”
While the budget includes funds to pay down debt for past projects, no funds are earmarked for new capital projects in town, Maier said.
According to Maier, police expenditures represent the largest portion of the borough’s tab.
“The reason they are such a significant part of the budget is that a lot of their expenses are mandated,” she said. “They put their lives on the line every day, so that’s why they’re paid higher [than those in other departments].”
Still, she said, police spending is only up 1.5 percent from last year.
The budget will use $1.2 million in surplus funds, Maier said.
Metuchen is set to receive $1.4 million in state aid, consisting of $84,411 in consolidated municipal property tax relief, and $1.3 million in energy tax receipts. Vahalla pointed out that while the borough’s roughly 13,574 residents are facing an increase, they can rest assured that they will continue receiving the same services to which they have become accustomed.
“We have to maintain the services we have, because that’s important in Metuchen,” he said.
Vahalla cited the Pearl Street Piazza and The District at Metuchen — which will house Whole Foods Market — saying the two major developments will be a financial boon for the borough.
“Once those ratables are on [the books], that will help the borough exponentially for years,” the mayor said.
The council will hold a public hearing and vote on the budget July 20.