By Mark Rosman
Staff Writer
MANALAPAN — The Township Committee has adopted a $32.78 million budget to fund the operation of Manalapan during 2016. Members of the governing body voted 5-0 during their May 11 meeting to put the budget in place.
In her budget presentation, Township Administrator Tara Lovrich said the owner of a home that is assessed at the township average of $408,142 will pay about $12 more in municipal taxes in 2016 than in 2015.
“We continue to provide high-quality services residents expect and deserve,” Lovrich said. “We stay within caps and tax levy guidelines.”
The 2016 budget will be supported by the collection of $21.29 million in local taxes from residential and commercial property owners. Other revenue includes $3.82 million from surplus funds (savings), $3.87 million in state aid and $2.3 million in local revenues.
Manalapan’s municipal tax rate for 2016 is projected to be 33.7 cents per $100 of assessed valuation and the owner of a home assessed at the township average will pay $1,375 in municipal taxes.
The municipal taxes an individual pays will be more or less than what is paid by the owner of a home assessed at the township average depending on the assessed value of his home and/or property.
During the public hearing on the budget, resident Ray Kalainikas asked questions about the township’s surplus funds.
Municipal auditor Robert Oliwa said the surplus balance on Dec. 31, 2015, was $6.58 million. The 2016 budget uses $3.83 million from surplus, leaving the township with a balance of $2.75 million in surplus.
Kalainikas asked how much more money from surplus would have had to have been used to avoid the $12 increase in taxes.
“I want to see our tax levy go down,” he said.
Oliwa said the use of $384,000 more from surplus would have negated the need for a tax increase this year.
Chief Financial Officer Patricia Addario said that using a very large amount from the surplus fund can be a one-time or two-time fix to avoid a tax increase, but she said that could leave the township in a less stable position when it comes to regenerating surplus the following year, and leave less surplus available for use as revenue in the next budget.
Committeeman Jack McNaboe picked up on Kalainikas’ comments regarding the use of surplus to reduce the amount to be collected in taxes, saying, “This year we did push our CFO a little farther to the line than she would like to be. We had some extenuating circumstances. We try to run very lean and mean in this town.”
Among the extenuating circumstances to which McNaboe referred were a $323,000 increase in solid waste collection and an estimated $115,000 cost to dispose of recyclable materials, both of which were cited by Lovrich during her presentation.
Lovrich said Manalapan will continue to provide garbage and recycling collection as a municipal service. Homeowners are not required to seek their own contracts with waste haulers. She said the budget continues to fund public safety (police); recreational, cultural and senior citizen programming; the Department of Public Works; a municipal health department that provides many services; and the administration of the municipality.
Resident Deborah Smarth raised the issue of open space preservation, and officials said more than 1,800 acres have been preserved in Manalapan during the past 15 years. Smarth asserted that the preservation of open space is a net financial gain for a municipality.
Lovrich said the preservation of open space means there is less space to generate ratables and revenue and she said it is not without cost because open space must be maintained by the DPW and because debt is generated to pay for the cost of buying property.
The purchase of open space “is a philosophical discussion. How much land can you preserve?” she said.
Municipal taxes are one part of a property owner’s annual tax bill. Other items include Monmouth County taxes, Manalapan-Englishtown Regional School District taxes, Freehold Regional High School District taxes, a fire district tax and other assessments.