by Linda Baum
Middletown’s municipal tax rate will be increasing from $0.482 in 2012 to $0.496 this year per the proposed 2013 municipal budget, introduced on March 28th. Residents whose property assessments haven’t changed since last year will see a 2.9% jump in the municipal portion of their tax bill.
The 2013 municipal budget of $66.4 million reflects an increase of 4.4% – almost $2.8 million – over the 2012 budget of $63.6 million. The portion of this year’s municipal revenue to be collected through taxation is $48.6 million, an extra million or so more than last year, or a 2.2% increase.
The Township pointed to Superstorm Sandy as a primary reason for the budget and tax rate increases. The 2013 budget includes a $500,000 debt payment for storm costs, one of five equal payments over the next five years. Overall, Sandy costs comprise 4.2% of the budget, and debt service for all obligations comprises 11.7% of it, according to Township CFO Nick Trasente.
The combined impact of tax appeals and storm-related re-assessments has resulted in a $68.5 million reduction in the town-wide assessment base for 2013, a change of less than 1% that Trasente described as an assessment reduction of about $4,500 per home, on average.
The CFO talked about anticipated FEMA reimbursement for Sandy debris clean-up and emergency response costs. The budget assumes 75% reimbursement of the $14 million spent on storm clean-up. Trasente said that a 90% recovery is possible, but didn’t say how much money had already been received from FEMA or when the Township expected to receive any additional amounts. FEMA monies not anticipated in the 2013 budget upon its adoption in late spring or early summer will not offset this year’s municipal tax rate, which is set when the budget is adopted.
Pension and healthcare expenses are two other cost drivers. Healthcare costs are projected to increase $630,000 this year, resulting in a net cost to the Township of $8.4 million net of employee contributions, putting the gross amount of healthcare expenses in the $9.5 million range.
The slide show presentation by the CFO was relatively brief and was presented to a room that consisted of only a handful of people. Low turnout for the March 28th meeting may be due in part to the holiday weekend, but may also stem from inadequate notice by the Township of the change in the meeting time from 6:00 to 5:00 p.m. The earlier time may also have prevented some residents from attending.
In addition to the 2013 municipal budget, the 2013 solid waste budget was also introduced at the meeting. There will be no change in the rate per one hundred of assessed value for those who have Township-provided garbage collection.
12 comments:
What happened to the greater than 5% that was predicted by the blogger?
Anon 12:19p.m.,
Hey Sybil, that 2.9% does not include the increase in the school tax. Always a fault finding pain in the rear aren't you?
How can you say 2.9% for most then write that a 2.2% is raised by property taxes? That makes no sense. Where was the rant about the school taxes going up? They spend most of the taxes in this town and get the least amount of scrutiny from your left wing debbie-downer blog. It seems like it is almost time to change party names. No more democrat/republican. They should be called pessimist/optimist! You guys can never be happy or look to a brighter future. If you want a brighter future- go out and make one, it's not the governments job to do that for you!
Well the permit fees for fields added this year was a nice way to hide a tax increase as well.
Anon 9:40AM,
You need to get a grasp of budget language and read more carefully and maybe work on comprehension. The 2.9% is an increase in the TAX RATE. The amount of REVENUE TO BE COLLECTED THROUGH TAXATION is $48.6million, which is a 2.2% increase over 2012. There is a difference between a tax levy and a tax rate. The overall budget dollars to be collected increased 4.4% -- from $63.6 million to $66.3 million.
Please note that the Township debt service, as a percent, is almost three times the cost of Sandy in this budget and that healthcare expenses for active and retired employees and their families has increased and is over $9 million dollars. As an aside, this includes healthcare expenses for the sewerage authority board members, not employees, which the Township Committee refuses to eliminate from the budget, which taxpayers pay for.
Anon 12:19 PM the topic is the municipal budget not the BoE budget.
By-the-way the Township entered into a shared services agreement with the BoE to build turf fields -- Township pays $2.8 million and the BoE pays $250 thousand. BoE did much better with saving their budget dollars the the Township did
2.2% is an average, so for some the change in their municipal taxes is more, some less. I think the article is clear that 2.9% is the increase if your assessment hasn't changed since last year, which is most of us I would think.
Anon 12:28,
Please tell us where the BOE and Middletown are going to place "turf fields" on a shared services plan. Sure the people who fought against the last plan will be ready and waiting to hear the details.
Is this another election year project (like the last time he ran ) of this man who has another year as temporary mayor, who is desperate for something to "run on" again?
Please spare us from the incompetence this time around . There is no money for "turf fields" today. Clean up and maintain the parks we already have and that would be an honest endeavor for a change.
Where is the BOE and the town proposing to build turf fields now? The people on West Front St. would like to know?
Not in Lincroft.
The fields are being planned for the grounds of Harmony/Thorne and Thompson schools.
We can't afford to maintain the parks we already have and the TC has invoked usage fees on the Little League for upkeep. Where are the funds coming from for turf fields under current financial conditions in this township. Are turf fields again a priority as a S&S re-election ploy or what ?
They'll be looking for babies to kiss at Shadow Lake next.
One quick note --- salaries and benefits for employees of TOMSA ARE NOT INCLUDED IN THE TOWNSHIP BUDGET!
TOMSA is a separate municipal authority, they have their own budget which is not controlled by the Township.
That is all...
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