RED BANK – The Red Bank Borough Council has introduced a $23.19 million budget to fund the operation of the municipality in 2020.
Red Bank’s residential and commercial property owners will pay $14.17 million in a local tax levy to support the municipal budget and an additional $786,640 in taxes to support the maintenance of the Red Bank Public Library, according to the budget.
Other revenues in the 2020 budget include the receipt of $2 million in state aid and the appropriation of $2.43 million from the borough’s surplus fund (savings).
In 2019, the borough’s budget totaled $22.99 million and was supported by a tax levy of $13.45 million. Property owners paid an additional $766,853 in a library tax. Red Bank received $2 million in state aid and officials appropriated $1.48 million from the surplus fund.
In 2019, Red Bank’s municipal tax rate was 63.7 cents per $100 of assessed valuation (includes municipal purposes tax levy and library tax levy). The average home in the borough was assessed at $376,216. The owner of that home paid about $2,400 in municipal taxes.
In 2020, the average home in the borough is assessed at $383,981.
In response to an inquiry from the Atlantic Hub regarding what the municipal tax rate would be in 2020, Chief Financial Officer Peter O’Reilly, said, “That remains to be seen. It is under deliberation among the governing body with further consultation and advice provided by the business administrator and (the Borough Council’s) other Finance Committee members.
“(The municipal tax rate) is likely to be higher this year due to the pandemic, resulting in a shortfall from other miscellaneous revenue sources. The (final) adopted budget in July will likely not be identical to the introduced budget,” O’Reilly said.
Municipal taxes are one item on a property owner’s tax bill, which also includes Red Bank Borough Public Schools taxes, Red Bank Regional High School District taxes and Monmouth County taxes.
An individual pays more or less in taxes depending on the assessed value of his home and/or property, and the tax rate that is set by each taxing entity.
Selected appropriations from Red Bank’s 2020 budget include $5.3 million to be paid in police salaries and wages; $1.23 million to be paid in public works salaries and wages; and $254,742 to be paid in parks and recreation salaries and wages.
Red Bank will pay $629,000 for Sanitation, other expenses, and $590,000 for Landfill, other expenses. The payment of bond principal will cost the borough $1.14 million and interest on bonds will cost $476,024. Capital lease obligations show an appropriation of $701,113 for principal and $159,159 for interest.
Other appropriations include $2.35 million for employee group health insurance; $364,400 for workmen’s compensation insurance; and $269,900 for liability insurance.
During 2020, Red Bank officials will pay $1.26 million to the Police and Firemen’s Retirement System of New Jersey; $432,086 to the Public Employees Retirement System; and $450,000 to the Social Security System.