By Lea Kahn, Staff Writer
Montgomery Township Committee approved its proposed $27.1 million municipal budget for 2017, following a brief public hearing at its March 16 meeting., The 2017 municipal budget carries an increase of $86.35 on the municipal property tax bill for the owner of a house assessed at the township average. The municipal property tax rate will increase from 37 cents per $100 of assessed value to 39 cents., This means the owner of a house assessed at the township average of $499,451 will pay $1,934 in municipal property taxes, or $86.35 more than last year. The state-mandated 2-percent cap on the municipal property tax would have allowed township officials to raise property taxes by as much as $248.21., Montgomery Township officials were quick to point out that the 2017 spending plan is $500,000 less than last year’s budget of $27.6 million, despite mandated increases in costs such as pensions and health care premiums. There will be no reductions in municipal services., “This is a great accomplishment,” Mayor Ed Trzaska said., Chief Financial Officer Michael Pitts, who outlined the 2017 municipal budget for Township Committee, said township officials already have arrangements with other towns to share services, and new shared services agreements are in the works. This will reduce costs., Breaking down the spending categories, health and public safety account for 23 percent of the budget. The Construction, Engineering, Planning and Public Works departments make up 18 percent of spending. Pensions and Social Security, plus insurance and benefits, total 24 percent of the budget., On the revenue side, property taxes make up 55 percent of revenue. The budget calls for $14.8 million to be raised in property taxes to support the spending plan. State aid is flat at $1.3 million., Other sources of revenue include $4.3 million in surplus funds; $810,000 in fees and permits; $175,000 in Municipal Court fines; and $100,000 in interest income., It was pointed out that the municipal property tax makes up about 12 percent of a property owner’s overall tax bill. The school district accounts for 70 percent, and the Somerset County tax is 17 percent. The municipal open space tax is 1 percent of the total tax bill., Township resident Bill Randolph, who was the only one to speak at the public hearing on the budget, said he appreciated township officials’ “hard work” on the budget., Nevertheless, taxpayers are still “saddled” with a 5-percent increase in municipal property taxes, Mr. Randolph said. Families are struggling., “The bottom line is, taxes are going up by 5 percent. I have the same cost problems you have, but I do not have the ability to tax anyone else,” Mr. Randolph said.
