By Lea Kahn, Staff Writer
MONTGOMERY — The average property owner will see an increase of $97 in the municipal property tax bill for 2016, under the proposed $27.6 million municipal budget that was introduced by the Township Committee.
The proposed 2016 municipal budget, which will be subject to a public hearing at Township Committee’s June 2 meeting, calls for a 2-cent increase in the municipal property tax rate — from 35 cents per $100 of assessed value to 37 cents.
Walter Sheppard, the township’s chief financial officer, walked Township Committee through the budget at its May 5 meeting. He noted that this is the ninth municipal budget that he has prepared for Montgomery Township.
“Every year is a challenge,” Mr. Sheppard said, but steps are taken to ensure that the needs of the township are met. The 2-cent increase in the municipal tax rate is “reasonable,” he said. State law would have permitted Township Committee to increase the municipal property tax to $304 for the average property owner, but it has been kept to $97.
Much of the $774,000 increase in the proposed 2016 budget — from $26.8 million to $27.6 million — is attributable to mandatory increases in pension and health care insurance costs, plus statutory and contractual salary increases, and additional investments in the Police Department.
Montgomery Township is doing more with less, Mr. Sheppard said. Over the years, the number of full-time municipal employees has been reduced from 189 to 163, but steps have been taken to train the employees and provide them with equipment that allows those employees to be more productive.
The proposed budget does not call for any reductions in core services, he said. Money will be earmarked for improvements to the Department of Public Works and the Recreation Department for improvements in the parks and playgrounds.
“We budget a fair amount of money for roads, and the list continues to grow,” Mr. Sheppard said. The township plans to do an overlay of new asphalt on a section of Bridgepoint Road, plus some work on streets in the Williamsburg neighborhood.
Breaking down the spending categories, health and public safety account for 22 percent of the budget. The Construction, Engineering and Planning departments, and the Department of Public Works make up 16 percent of spending. Pensions and Social Security, plus insurance and benefits, total 22 percent of spending.
On the revenue side, property taxes make up 51 percent. The budget calls for $14 million to be raised in property taxes to support the budget. Other sources of revenue include $4.7 million in surplus funds; $752,125 in fees and permits; and $204,000 in Municipal Court fines. State aid is flat at $1.3 million.
It was pointed out that the municipal property tax rate makes up 12 percent of a property owner’s overall tax bill. The school district tax accounts for 70 percent of the tax bill and the Somerset County tax is 17 percent. The municipal open space tax is 1 percent of the total tax bill.
Deputy Mayor Ed Trzaska said after the meeting that while the 2-percent cap on the municipal property tax would allow the township to hike property taxes by $304, it has chosen to craft a budget to minimize the tax increase to $97.
“Many towns take as much of an increase as allowed, year after year,” Deputy Mayor Trzaska said. “Montgomery is different. We are proud to stay as below the 2-percent cap as possible. Just like last year, we are using less than one-third of the eligible amount.”
“(And) staying true to our core governing principle of protecting and enhancing public safety, we are investing our limited resources where it will benefit the community most —in our Police Department and township roads,” he said.
Several police officers are expected to retire this year and there are plans to hire new officers, Deputy Mayor Trzaska said. Township Committee also expects to buy three new police cars, new radar and finger-printing equipment, and upgrades to the communications system.
