PLUMSTED — Concerns about an ongoing dust-up among the governor, state legislators and unions that represent state employees have been addressed in a manner that allowed the Township Committee to adopt Plumsted’s 2015 municipal budget.
In May, the committee held off on adopting the budget due to the possibility that Gov. Chris Christie could be ordered by a court to make a full payment to the state’s pension fund for the 2015 and 2016 budget years. The payments could exceed $1 billion.
Local officials said they were concerned that if Christie were forced to make the pension payments, Plumsted could receive less state aid than it had been promised.
“Our chief financial officer (CFO) was away when everything with that was happening, so we decided to wait to discuss it with her,” Mayor Jack Trotta said. “We had plenty (of money) in the temporary budget to go to the end of June, so we had money to spend in the meantime.”
Trotta said that after officials spoke with CFO June Madden, they determined they would be able to make appropriate adjustments to the municipal budget if state aid were reduced for any reason.
“We can go back and look at both sides of the equation … and see what we can do to keep a balanced budget,” the mayor said.
Plumsted is expecting to receive $452,322 in state aid in 2015 — the same amount received in 2014.
As a result of Madden’s assurances regarding the state’s issues, members of the committee opted to approve the budget on June 3, according to Trotta.
“As long as we have a way out of that situation [with the state], we are going forward,” he said.
Plumsted’s $3.58 million budget was unanimously approved and will be supported in part by the collection of $1.89 million in a local tax levy from the owners of residential and commercial properties.
The municipal tax rate is projected to increase from 23.5 cents to 24 cents per $100 of assessed valuation.
The increase in the municipal tax rate will have a different impact on each property owner depending on the assessed value of one’s home and/or property.
In 2014, the average home in Plumsted was assessed at $276,048, and the owner of that home paid $648 in municipal taxes. In 2015, the average home in Plumsted is assessed at $279,100, and the owner of that home will pay about $670 in municipal taxes.
If an individual’s home was assessed at $250,000 in 2014 and is assessed at $250,000 in 2015, the municipal tax will increase from $588 to $600.
If an individual’s home was assessed at $350,000 in 2014 and is assessed at $350,000 in 2015, the municipal tax will increase from $823 to $840.
If an individual’s home was assessed at $350,000 in 2014 and is assessed at $375,000 in 2015, the municipal tax will increase from $823 to $900.
Municipal taxes are one component of a property owner’s total tax bill. Property owners also pay Plumsted Township School District taxes, Ocean County taxes and other assessments.
The municipal budget pays for items such as the police department, municipal professionals such as attorneys and engineers, and the administration of the municipality.
Police salaries and wages have increased from $735,000 in 2014 to $762,200 in 2015, according to the budget. Police salaries and wages account for slightly more than 21 percent of the municipal budget.
In 2015, municipal employees will pay about $75,000 of Plumsted’s projected group health insurance costs of more than $489,000. The employees’ payments will cover slightly more than 15 percent of the insurance premium.
This year’s operating expenses include interlocal services agreements with the Plumsted Township School District for the continuation of courtesy busing ($54,778) and a school resource officer ($70,000).
Municipalemployeesreceiveda2percent salaryincreasefor2014anda2percent salary increase for 2015.