Politics & Government

Township Approves Budget With 2.5-cent Tax Bump

Owner of a home assessed near the township average will see an increase of between $40 and $50 on their municipal tax bill.

Municipal taxes are on the rise after the Township Council voted unanimously Tuesday to approve a budget that carries a 2.5 cent tax increase.

The spending plan raises the tax rate from 72-cents to 74.5-cents per $100 of assessed valuation. The new rate would bring an annual municipal tax increase of about $47 for homes assessed at the township average of $188,400.

The budget cuts spending by about $115,000, as total spending since 2008 has been slashed by nearly $1.5 million. However, the net decrease in the township ratable base, weighing revenue from new businesses versus the loss of revenue from tax appeals, came in at a loss of about $8 million.

Find out what's happening in South Brunswickwith free, real-time updates from Patch.

"Originally I said I wouldn't support a budget unless it had a reduction in spending, and this budget does have that," said Councilman Joseph Camarota. "The other side of the token is that 2.5-cents is about $400,000 for every tax point. Can we cut another million (to get down to a zero increase) without affecting core services? Quite frankly I can't see us doing that."

The drop in total assessed value last year alone would've accounted for a 2-cent tax rate increase for the coming year, according to township officials. 

Find out what's happening in South Brunswickwith free, real-time updates from Patch.

South Brunswick also had to account for emergency spending on Hurricane Sandy and other storms. A portion of those funds will eventually be reimbursed by FEMA, but still must be included in the spending plan.

The township's pension obligations also rose by about $72,000. South Brunswick's pension costs have increased by nearly $4 million over the last seven years. 

"The state is holding about $317,000 worth of FEMA money that would have us closer to a 1-cent (tax rate increase)," said Deputy Mayor Chris Killmurray. "The FEMA money is approved, it goes through the State of New Jersey and you don't get it all back. Some of that money will come back, but you can't count it as revenue and we're at a point where we're ready to move on this budget. (Additionally the state) is making two-sevenths of their pension payments and we pay 100 percent."

On the plus side for the township, South Brunswick finished number one in the entire state in terms of new permits issued last year, as new construction revenue saw a $2.4 million spike in permit fees. Revenue from a hotel tax brought in an additional $80,000 last year, revenue from cable fees increased by $227,000, and revenue from court fees rose by about $27,000. South Brunswick will also save a projected $500,000 by switching health care providers.

Council members pointed to a more focused approach towards working with businesses to bring them into town, which helped code enforcement see a growth in revenue from about $930,000 to $2.3 million.

"Things are moving in town and we've got to be ready for that," Camarota said. "It's been three years since I supported a (tax increase), but after a lot of deliberation and introspection, I will support this budget."

The township workforce has been cut by 44 employees since 2007. With four positions in the South Brunswick Police Department to be lost this year to retirement, the new budget includes adding seven new police officers throughout the year to bring the total number of officers to 76.

The budget also bolsters the revenue-generating code enforcement office, including making a part time electrical inspector a full time position, as well as hiring of a new counter person.

"I was looking to keep the budget at a zero increase," said Councilwoman Jo Hochman. "When we were presented with the budget, we did intense scrutiny of every line item. It's important to keep services that protect our residents. We saw with Hurricane Sandy how important our police and emergency services are. Police officers retiring need to be replaced. Utility vehicles 10 years or older need to have major repairs or be replaced."

Under the mandated 2-percent tax cap, the township was permitted to raise taxes by about 10-cents due to the cap allowing the addition of health, pension and emergency costs. 

The full South Brunswick tax rate last year was $4.49 per $100 of assessed valuation, with municipal taxes accounting for 16 percent of that total and school taxes accounting for 63.5 percent of that total, according to Chief Financial Officer Joseph Monzo. South Brunswick's average municipal bill last year came in at $1,589.53, below the average municipal bill statewide of $2,324.66, according to Star Ledger analysis.

With several new hires included in the budget, council members praised the work of the current municipal workforce during a difficult past couple of years.

"I want to thank our employees, because for the past two to three years they've had to do more work with less people," said Mayor Frank Gambatese. "They've had to absorb the work of their fellow workers retiring, or not being replaced, or they had to cut back (on hours). Some people accuse municipal workers, who are suddenly villains in the budget process, and they're not. They provide a tremendous quality of life and I want to thank them all."


Get more local news delivered straight to your inbox. Sign up for free Patch newsletters and alerts.

We’ve removed the ability to reply as we work to make improvements. Learn more here