By MICHAEL NUNES
Staff Writer
EAST BRUNSWICK – Without much fanfare, the Township Council introduced its 2016 municipal budget.
According to information provided by the township, the 2016 introduced budget totals $63.01 million, a total that is up from $59.47 million the previous year.
The tax rate is expected to increase from $1.88 out of $100 to $2.01 out of $100. A home assessed at the township’s average of $100,000 would have a tax bill of $2,010, which is an increase of $130 from the previous year.
“The largest increase is both a revenue and an appropriation, which is $1.3 million shared services agreement where the township is funding improvements [for the East Brunswick Board of Education]. Last year we agreed to fund $6 million to be paid back in five years. This is the first year of the five so one of the first items in the increase from $59.47 million to $63.01 million is the board item,” said Lou Neely, chief financial officer for the township.
Neely also added that insurance costs have also seen an increase over the past year.
“Next, pension costs jumped by $431,400 and insurance is up because of the Affordable Care Act by $1,144,573. These are factors beyond the control of the mayor,” he said, adding, “Take out the mandatory pension and health benefits and the change is very small.”
The proposed budget, which is scheduled to have a public hearing at the council’s May 23 meeting, is supported by a $40.62 million tax levy on residential and commercial property owners. Last year’s budget was backed by a $38.08 million tax levy on those same property owners.
The total does not factor in school or county taxes.
Contact Michael Nunes at [email protected].