East Windsor Township property owners will not see an increase in the municipal tax rate for the sixth straight year under the proposed $22.4 million municipal budget for 2018 that has been introduced by the township council.
Officials said the municipal tax rate will remain at 43 cents per $100 of assessed valuation. The owner of a house assessed at the township average of $258,287 will pay $1,121 in municipal property taxes. Municipal taxes are one item on a property owner’s total tax bill, which also includes school taxes and county taxes.
The 2018 municipal budget of $22.4 million increased by approximately $400,000 over the 2017 budget of $22 million. The amount of taxes to be collected to support the 2018 budget is $12.2 million, compared to $11.9 million for 2017.
A public hearing on the budget and final action by the council is set for the governing body’s May 8 meeting.
Municipalities rely on several sources of revenue to support the budget – from the use of surplus funds (savings) to miscellaneous revenues such as licenses, fees and permits, municipal court fines and costs, and a hotel tax. The remainder of the revenue needed to fund the budget is made up through property taxes.
In East Windsor Township’s proposed budget, licenses for alcoholic beverages are expected to generate $32,444, while municipal court fines and costs are expected to generate $463,000. The hotel tax will produce $210,000 in revenue, according to the budget.
Officials will apply $3.1 million from surplus funds to support the budget and expect to receive $3.5 million in state aid. Construction code fees will generate $387,572 in revenue. Shared service agreements for animal control, the senior center and police dispatching will produce $239,626.
Property taxes collected from residential and commercial property owners will make up the difference of $12.2 million to support the municipal spending plan. Under state law, officials could have raised up to $12.9 million in municipal property taxes – an additional $700,000 over the amount projected to be raised – but chose not to do so.
“This is an excellent budget. This fiscally conservative budget will continue to deliver a high quality level of services to residents,” Mayor Janice Mironov said, adding that the council “takes very seriously” its responsibility for budgeting and spending taxpayers’ money.
Noting that council members could have raised property taxes up to the 2 percent maximum allowed by state law, Mironov said their decision not to do so “shows sensitivity to the residents and their pocketbooks.”
The mayor said preparing a municipal budget that does not have a tax increase is the result of the township’s commitment to continually seek out more efficiencies, cooperative purchasing agreements and shared services agreements.
There is a significant increase in new businesses and ratables, and a low level of debt, which combine to keep a lid on property taxes, she said. Officials take a proactive approach to carefully plan and to closely monitor expenses and revenue all year, Mironov said.