I found the following press release (see below) on the Middletown Board of Education (BOE) website. There will be a public hearing this upcoming Monday night, May 5th on the proposed 2014-2015 school year budget. According the press release the proposed school budget is expected to include a 2% tax increase.
The press release also states that the BOE plans to utilize a portion of the district's "banked" tax levy saved from previous years, to fund a pending pension liability assessment from the New Jersey Division of Pensions and Benefits. What the press release doesn't state though is how much of an additional levy will be imposed through the use of the banked cap levy. The BOE would prefer to inform residents at the meeting Monday night.
Don't fret however, you needn't wait all weekend to find out. I've learned that the there will be an additional 1.6% added to the tax levy to fund they pension liability, which would bring the overall tax levy for the upcoming school year to 3.6%.
If you have any further questions about the proposed budget make sure to attend Monday's BOE meeting and ask. I'm sure you'll get the answers you're be looking for.
FOR IMMEDIATE RELEASE:
Middletown, New Jersey, May 1, 2014 – The Middletown Township Board of Education will be
conducting a public hearing on its final proposed budget for the 2014-2015 school year on Monday,
May 5th at 8:00 p.m. at Middletown High School North, 63 Tindall Road, Middletown.
The Board of Education approved a tentative budget that includes a 2% increase in the tax levy. The
final proposed budget that the Board will be voting on at this meeting includes the utilization of a
portion of the district’s total banked tax levy to fund a pending pension liability assessment from the
New Jersey Division of Pensions and Benefits. The banked cap utilization will increase the 2014-2015
tax levy. This change will be discussed at the May 5th public hearing.
The May 5, 2014 voting meeting agenda is currently posted online at www.middletownk12.org.
Showing posts with label tax levy. Show all posts
Showing posts with label tax levy. Show all posts
Friday, May 2, 2014
Saturday, June 15, 2013
Monmouth County Library System in Trouble?
According to an article posted on NJ.Com, it looks like Monmouth County Freeholder John Curley wants to do to the Monmouth County Library system what Tony Fiore and the cronies here in Middletown have done to our library, which is to systematically disparage and cripple it to the point where a few individuals speak out and confront its leadership about the extravagant cost in tax dollars it takes to operate the library and then accusing its administrators of neglect and mismanagement of funds. All of which then leads to the threat of to defund the library, take its surpluses and get rid of (fire or lay-off) those that oppose them, all in the name of budgetary austerity.
From NJ.Com:
From NJ.Com:
The Monmouth County Library system continues to modernize and expand, but the cost is alarming some residents and officials.
The Board of Chosen Freeholders approved a $13.6 million tax levy to help fund the libraries’ $19.2 million budget, but not without protest from one member.
“I am very much concerned over these expenditures and how the library needs to reign itself in,” Freeholder John Curley said.
Curley said the library was on the path to fiscal insolvency.
“There has to be a drastic overhaul of the library system,” Curley said. “It can’t sustain itself. In 2014 at this rate the library’s bankrupt. I hope this plan can be incorporated.”
Monmouth County Libraries Director Ken Sheinbaum demurred, arguing that the system is a paragon of how to do more with less.
"Our library is among NJ's large public library systems and by a substantial measure the most efficient," Sheinbaum said. "Based on the number of circulations that each full time employee is responsible for, our employees are doing twice as much work as some of our sister institutions, and that was before we had a cut. It presents an exciting challenge for us to see how long we can maintain services on the level... while at this point losing eight percent of our staff over the past eight months."
Though the library's budget has decreased around $650,000 from 2012 levels, the gap between the library’s budget and its tax levy has increased. That shortfall been filled over recent years by Monmouth County’s surplus funds – this year, almost $6 million will be spent keeping the library solvent.
Sheinbaum said the money will come out of the system's fund balance.
"It is a library surplus, the library operates on a dedicated tax," Sheinbaum said. "We don't rely on the county to make a contribution, we take that from our own reserve." ...Continue reading.I suppose if you're a Middletown Library supporter and advocate the good news is the Middletown Library won't be changing hands anytime soon no matter how much Fiore wants to destroy it.
Saturday, March 30, 2013
Most Middletown homeowners will see a 2.9% rise in their municipal taxes for 2013
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.
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.
Monday, March 18, 2013
Independent Article On $1.2M Increase In School Budget Gives Potential Insight Into This Year's Municipal Budget
Last week's Independent had an article about the Middletown Board of Education's budget introduction for the upcoming 2013-2014 school year," Decline in property values drives M’twn school tax hike; $78M loss in property valuations contributes to $1.2M tax levy increase", this article may give us some insight into what this year's municipal budget may have in store for us. I recommend reading the article, it went into great detail explaining how the budget for the upcoming school year was put together and what were the priorities. You can then take a look at the Budget Presentation that the school administrators put together for its introduction that took place back on February 27th.
On Wednesday night this week (March 20th), the Middletown Board of Education will hold a public hearing on the budget, after which a vote will take place for its adoption.
Here's a snippet from the Independent article:
The only issue that I have with this article and the budget presentation is it states that the tax levy will increase by $1.2M due to the loss of $78M in property values caused by Hurricane Sandy. However, it does not give us the exact percentage of the increase, only saying that it keeps this years tax levy below the state mandated 2% cap. Based on my calculations that's correct, I figure the increase to be ~ 1.5%, which is fine. I just wish that the people putting this stuff together treated their intended audience as grown-ups and not children, you'll see what I mean when you examine the presentation.
The presentation goes to great length to explain how well the administrators have done over the past 3 years staying within the parameters of the mandated cap, using that argument to justify this years increase. I find this type of justification nauseating. I'd feel better about it if the school administration just stated the facts and not try to tippy-toe around the truth of the situation, which is, thanks to the damage caused by Hurricane Sandy throughout the township, property values are down and the school district can't make any further cuts to the upcoming budget without severely effecting the education of our kids.
Knowing that the loss of township property values is now at $78 million (as per the school budget) and the costs to clean up after Hurricane Sandy is in the millions of dollars, some of but not all of which, will be reimbursed at some point by the federal government and knowing that this years municipal budget should still be in the neighborhood of $65 million as in previous years, supported by a tax levy of nearly $45 million, I don't see how this year's budgeted tax increase will be below the state mandated 2% cap on property taxes.
Last year's tax cap increase was 1.97% and seeing how nothing significant has changed, we can use that as the baseline for this year's increased. Add to it an increase in the cost to health-care and other benefits along with all the clean-up costs associated with Hurricane Sandy and the $78 million hit taken from lost property values, I'd say that Middletown is looking at a budget increase of nearly 5% or more on top of our baseline, making this years increase in the neighborhood of 7% or potentially greater.
If this year's increase to the tax levy is going to be greater that 2% we should know within the next month or so. Middletown will need to ask its residents to approve the budget increase on Primary Day, June 4th.
On Wednesday night this week (March 20th), the Middletown Board of Education will hold a public hearing on the budget, after which a vote will take place for its adoption.
Here's a snippet from the Independent article:
MIDDLETOWN — Declining property values throughout Middletown contributed significantly to the tax levy increase in this year’s district Board of Education budget.
Proposed at the Feb. 28 board meeting, the $147,856,250 budget represents a tax levy increase of $1,250,042 over last year, which would account for a $68.90 annual hike for residents with a home valued at the township average of $375,500.
That increase is offset, however, by a decrease in the district’s annual debt service payments caused by recent refinancing. The total taxpayer increase would stand at $53.24 per year, or $4.44 per month.
According to board professionals, much of the increase is due to the loss of $78 million in township tax assessment valuations throughout the past year....
The only issue that I have with this article and the budget presentation is it states that the tax levy will increase by $1.2M due to the loss of $78M in property values caused by Hurricane Sandy. However, it does not give us the exact percentage of the increase, only saying that it keeps this years tax levy below the state mandated 2% cap. Based on my calculations that's correct, I figure the increase to be ~ 1.5%, which is fine. I just wish that the people putting this stuff together treated their intended audience as grown-ups and not children, you'll see what I mean when you examine the presentation.
The presentation goes to great length to explain how well the administrators have done over the past 3 years staying within the parameters of the mandated cap, using that argument to justify this years increase. I find this type of justification nauseating. I'd feel better about it if the school administration just stated the facts and not try to tippy-toe around the truth of the situation, which is, thanks to the damage caused by Hurricane Sandy throughout the township, property values are down and the school district can't make any further cuts to the upcoming budget without severely effecting the education of our kids.
Knowing that the loss of township property values is now at $78 million (as per the school budget) and the costs to clean up after Hurricane Sandy is in the millions of dollars, some of but not all of which, will be reimbursed at some point by the federal government and knowing that this years municipal budget should still be in the neighborhood of $65 million as in previous years, supported by a tax levy of nearly $45 million, I don't see how this year's budgeted tax increase will be below the state mandated 2% cap on property taxes.
Last year's tax cap increase was 1.97% and seeing how nothing significant has changed, we can use that as the baseline for this year's increased. Add to it an increase in the cost to health-care and other benefits along with all the clean-up costs associated with Hurricane Sandy and the $78 million hit taken from lost property values, I'd say that Middletown is looking at a budget increase of nearly 5% or more on top of our baseline, making this years increase in the neighborhood of 7% or potentially greater.
If this year's increase to the tax levy is going to be greater that 2% we should know within the next month or so. Middletown will need to ask its residents to approve the budget increase on Primary Day, June 4th.
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