The owner of a house assessed at the township average of $673,176 will pay $2,356 in municipal taxes under the $12.2 million plan.
By: Lacey Korevec
Some residents say the township’s $12.2 million budget, adopted Monday, is asking too much of taxpayers.
About 15 community members attended the budget public hearing Monday night to speak about the budget, which is smaller than last year’s $12.5 million, and carries a municipal tax rate of.
The spending plan is smaller than last year’s because of a $900,000 decrease in payments on township debt from $4.9 million to $4 million.
The township introduced its budget Feb. 12, but has since made changes to it because of an additional $13,158 in municipal property tax assistance from the state, which was used to offset the amount of money to be raised by taxes, changing it from $6.496 million to $6.483 million. The state aid has little effect, however, since it takes $185,622 to cut 1 cent from the municipal tax rate, officials said.
The 2006 budget had a tax rate of 85 cents per $100 of assessed valuation. Under that rate, an owner of a house assessed at the township average paid $1,865 in municipal taxes.
It’s difficult to compare the new rate with the 2006 rate because of a township revaluation, which has increased the average residential property value from $219,439 to $673,176. Every property owner has been affected differently by the revaluation because every property is different.
Wynnewood Drive resident Richard Kallan said Monday that he’s frustrated because his taxes have increased drastically each year. He said that rising taxes are driving retired homeowners out of Cranbury and that many of those houses are then being bought by families with a lot of children, which is increasing the township’s population and crowding classrooms at Cranbury School.
"You have more and more people in this town who are retiring," he said. "I’ve been living in Wynnewood for 37 years and a lot of people who are retired are leaving."
Mr. Kallan, who is retired, said it seems the taxes will continue to rise each year, forcing seniors to move, and bringing larger families in, unless the committee does something.
He said a 4 percent wage increase for township employees is too generous at a time when residents are already feeling the effects of the township revaluation.
"We ought to be running this township like a business," he said. "When things get tough, you don’t get raises. When things really get tough, people get laid off."
In 2007, the township plans to spend $2.9 million on salaries and wages for township employees, up from $2.6 million in 2006. That includes $1.77 million for Cranbury police salaries and covers the hiring of two new officers, which committee members said is necessary because of traffic and safety concerns in the township.
"We felt we’re adding that in response to the public," Committeewoman Pari Stave said.
Committeeman Tom Panconi said the township currently has 17 officers, three of whom are superior officers and two of whom are detectives. He said the current number only allows the township to have two officers on duty at all times. The addition of two new officers would make it possible to have three on duty at the same time.
"We are adding two police officers because the community we are living in has changed," Mayor David Stout said.
Bergen Drive resident Carlene Reyes said her taxes went up approximately 24 percent between the years 2000 and 2006.
"Are we making any cuts"? she said. "Are we looking at anything to cut or are we just raising?"
Mayor Stout said the committee has made cuts in certain areas to keep spending down. But he said in past years, the township has used more from surplus to help offset the amount needed to be raised in taxes.
This year’s budget calls for using $1.2 million from the township’s surplus, leaving $3.7 million left in the surplus account. In 2006, the township used $2.3 million.
"Historically, our tax rate has been buffered by surplus," Mayor Stout said. "We are not able to do that this year."
Officials said the township is using less surplus this year because $1.4 million of it has been set aside to cover anticipated tax appeal settlements tied to the revaluation. There is also $985,906 less available this year than there was in 2006.
Committee members also said that state mandated expenses have increased drastically over the past few years.
The township plans to pay $109,025 into the Police and Firemen’s Retirement System, which is $50,000 more than it paid last year. It will also pay $49,670 into the Public Employees’ Retirement System, up from $27,563 in 2006. The township is also required to pay $532,295 for maintenance of the Cranbury Public Library, up from $462,865 in 2006.
"We’re one of you," Mayor Stout said. "We all pay taxes in this community and we’re spending our money as carefully as we can."
Township Tax Assessor Steve Benner said he understands that residents are feeling the effects of the township revaluation, the first done in Cranbury since 1986, but the revaluation was necessary to level out township property values and current market values.
"It’s not designed to raise your taxes," he said. "It’s designed to make you equal again. And the inequality out there was tremendous."
Some residents said the 2007 budget is not actually smaller than last year’s spending plan because the township is paying $900,000 less into debt service than it did in 2006.
But Mayor Stout said that is not the only reason the budget is smaller than last year’s.
"There is a net decrease in the budget and it isn’t only because we’re paying less debt," he said. "We have looked at other areas and we continue to look at other areas."