By Lea Kahn, Staff Writer
In front of a small but vocal group of residents, Township Council gave final approval Tuesday night to the $43 million municipal budget for 2013.
Mayor Jim Kownacki and Councilmen Stephen Brame, David Maffei and Michael Powers voted to approve the spending plan following a brief public hearing. Councilwoman Cathleen Lewis was absent.
The budget carries a 5-cent increase in the municipal property tax rate, from 89 cents per $100 of assessed value to 94 cents. The owner of a house assessed at the township average of $160,262 will pay $80.13 more in municipal property taxes for 2013.
The amount to be raised by taxation — also known as the tax levy — represents about 55 percent of the revenue to support the 2013 budget and has been set at $23.5 million. That number is $152,000 below the statutory 2-percent cap on increases to the tax levy. The tax levy could have been raised to a maximum of $23.6 million.
The municipal tax levy and the municipal property tax rate are not the same thing. The tax levy is the amount of money to be raised by property taxes, and is capped at 2 percent from one year to the next.
The municipal property tax rate is the number of cents-per-$100 of assessed value — 94 cents per $100 of assessed value, for example. Each property owner’s tax bill is determined by the assessed value of his or her property. The tax rate varies from year to year, but does not have a mandatory cap.
A portion of the increase in the municipal property tax rate is due to a decline in the overall property tax base from 2012 to 2013. The tax base, or taxable value of all property in Lawrence Township, has declined by $27 million and resulted in a loss of $254,953 in property tax revenue. The taxable value of all property in Lawrence is $2.5 billion.
Tuesday night, township resident Amy Davis pointed out that the $80 increase, combined with a new $25 bulk trash collection fee, means the average homeowner will pay $105 more in municipal property taxes and fees — which exceeds the 2-percent cap on municipal property taxes.
”The municipal tax increase, added to the school and county tax increases, is why our property taxes have more than doubled in recent years. Council must think, ‘What’s another $105?’ But it’s the bigger picture. It’s all these increases each and every year that don’t appear shocking alone but when continued over 10 or 20 years, they all add up and stun you,” Ms. Davis said.
Ms. Davis also noted that many surrounding towns have either reduced the property tax increase or held it steady. Property taxes in other towns are increasing by a much lesser amount — $36 in West Windsor Township and $50 in Ewing Township and the City of Trenton, she said.
”They understand that there are many unemployed, underemployed and others who haven’t received salary increases in many years. So, why don’t you get it? I’m convinced now that you will never get it,” Ms. Davis told the council.
Township resident Ian Dember said that he “believes in the facts.” The 2013 budget is under the 2-percent cap, he said, adding that he appreciated the work that Township Council has done to keep spending in line.
Councilman Michael Powers said that “no one is happy” with the 5-cent increase in the tax rate, but “we have to play with the cards we are dealt.” He acknowledged that there are fewer police officers, but hiring a private company to perform 911 dispatching has allowed the Police Department to put two officers on the street.
Councilman David Maffei thanked Municipal Manager Richard Krawczun for his “hard work,” and added that everyone is aware of the poor economic situation facing the township. He said he appreciated that there are no staff layoffs this year.
Councilman Stephen Brame said he, too, supports the municipal budget.
”Let me assure you, the fiduciary responsibility weighs heavily on us. The increase in the tax burden hurts us all,” he said.
Mayor Jim Kownacki reminded the audience that the municipal tax levy increase is less than the 2-percent cap.
”(Being an elected official) is a hard job,” Mayor Kownacki said. “You have to have an alligator skin. People can be mad at me because of my position, but this is the job you elected me to do, and (I am doing) the best I can.”
