The Hillsborough Township Committee has introduced a $30.2 million municipal budget for 2019 and will ask residential and commercial property owners to pay a total of $19.7 million in property taxes to support the plan.
Officials introduced the budget on June 11 and discussed the municipality’s expenditures and fiscal goals for 2019. They said if the budget is adopted, it would reduce the tax rate and save homeowners $397,655 in taxpayer savings.
“This budget is a result of our team’s continued fiscal responsibility regarding municipal operations,” Hillsborough Township Mayor Frank DelCore said in a statement.
The finance team is comprised of Mayor DelCore, Committeeman Shawn Lipani, Township Administrator Anthony Ferrera and Chief Financial Officer Nancy Costa.
Officials said they saw an increase in the township’s ratable value for 2019 of $225 million, a 3.97% increase, which increased the tax base over which the tax levy is distributed.
After holding a flat rate for three consecutive years, the 2018 municipal tax rate was reduced and again for 2019, there will be a reduction.
From 2015-17, officials said that homes assessed in the township at $350,000 paid $1,155 a year in taxes. A household at that same assessed value paid $1,137 in taxes for 2018.
In 2018, the municipal tax rate was reduced from 33 cents per $100 of assessed valuation to 32.5 cents due to the annual reassessment program as well as continued growth in the township; for 2019, the tax rate will be reduced another 0.5 cents to 32 cents per $100 of assessed valuation. If the budget is adopted as proposed, residents with a home assessed at $350,000 would pay $1,120 in municipal taxes for 2019.
Officials said there will be allowable exceptions over the 2% tax levy cap, which for the 2019 budget could have added $397,655 to the tax levy, were not used in order to reduce the tax impact on property owners.
Available exceptions include pension obligation increases, deferred charges to future taxation and increase in debt service and capital improvement appropriations, according to officials.
Since the inception of the tax levy cap in 2011, municipal officials said they had $2.1 million in available exceptions, which could have been used to increase taxes above the 2% cap.
“It is important to note this budget represents just over 13% of your total tax bill,” Mayor DelCore explained. “If the township were to take advantage of the allowable exceptions and exceed the 2% tax levy cap, the taxpayers would have incurred an additional $397,655 in taxes.”
In terms of debt service, the township paid $1.45 million in 2018. The proposed debt service for 2019 is $1.56 million.
“This budget is a direct result of the Township Committee’s commitment to continued fiscal responsibility; working efficiently while providing our taxpayers the same level of service excellence they expect and deserve,” Mayor DelCore said. “It has been the position of this Township Committee to take a fiscally prudent stand when dealing with the township’s finances.
“In addition, cost savings have been a part of the municipal employees’ annual goals and objectives. Their efforts are additionally realized in the results of this budget,” Mayor DelCore said.
Officials said they would continue a “Pay As You Go Program” for routine capital purchases and make payments on debt service greater than what is required, which is aimed to reduce the township’s debt.
Officials said they believe this practice would allow the township to maintain its AA+ bond rating. The budget includes money allocated for the capital improvement fund of $600,000, an increase of $30,000 for 2019, which is aimed to fund future capital ordinances.
The public hearing and adoption of the 2019 municipal budget is scheduled for July 9 in the municipal building. Full budget documents can be found online at hillsborough-nj.org