Municipal tax rate could go up 16 cents
Mayor says budget keeps status quo in face of rising costs
BY VINCENT TODARO
Staff Writer

EAST BRUNSWICK - Residents would see the largest municipal tax hike in years under a newly proposed 2007 budget.

The Township Council last week introduced the budget, which calls for a tax rate increase of 16 cents per $100 of assessed valuation, or $160 for the owner of property assessed $100,000.

The municipal tax hike is one component of a homeowner's property tax bill, which also includes school, county and fire district taxes. East Brunswick residents will see a separate 37-cent increase in the school tax rate under a 2007-08 school budget that recently was approved by voters.

In his budget message April 21, Mayor William Neary said the past two years' municipal budgets have been the most difficult out of the 10 he's presented as mayor.

"Movement on property tax reform in Trenton has stalled and our reliance on property taxes to fund necessary local services continues to challenge elected officials," Neary said.

The 2007 budget, which stands at about $62 million, represents an increase of about $2.1 million, or 3.5 percent from last year's package. Neary attributed this to a number of factors including flat state aid, expensive state mandates and contractual obligations. Needed services have also increased in cost.

"Once again, the budget being proposed was scrutinized and trimmed throughout the budget preparation process," he said.

"The instruction given to our various departments was, 'No increase in services or expenses over last year,' and to look at each and every expenditure for possible cuts," the mayor said. "Therefore, the budget as introduced maintains the status quo and in many areas is reduced."

The Township Council will hold budget workshops starting in May to review and possibly make changes to the budget. Its final adoption will likely take place in July, when the state releases its municipal extraordinary aid figures.

The township has applied for $800,000 in state aid, which would reduce the tax rate hike by about 4 cents, leaving the increase at 12 cents, unless the council cuts the budget.

The current municipal tax rate, before the increase, is $1.25 per $100 of assessed valuation.

Councilman David Stahl said the state is cutting back on aid to municipalities, and he is doubtful that East Brunswick would receive the full amount it requested.

Stahl voted against introducing the budget last week, and has also opposed the periodic temporary appropriations that have come before the council this year. He said the 16-cent increase is the largest he's seen as a councilman, but the council has limited options in terms of cuts because most of the year's money will have been spent by the time it adopts the budget.

Public turnout at last week's meeting was sparse, but one resident offered her feelings on the township's property tax situation.

Camille Ferrara said that while she commends Neary for keeping municipal tax increases low in previous years, she thinks it is time to perform township-wide property revaluation.

She said many residents are getting short-changed because businesses, especially those along the Route 18 corridor, are not paying their fair share of taxes.

"They are prospering on the backs of the town people," she told the Sentinel after the meeting.

No member of the governing body responded to her comments during public session.

Neary said pension contributions are increasing, along with solid waste costs, library costs, gasoline expenses and even street lighting.

But part of the reason for the increase, he said, is a "decrease in the assessed value of real estate," as some businesses in the township were able to lower their assessments through tax appeals.

Neary also discussed economic achievements the township has made. He pointed to the medical corridor on Cranbury Road, as well as an effort by the Brunswick Square Mall to invest in the building and keep major tenants by renovating and expanding the building. He also pointed to a number of new businesses that have moved into East Brunswick in the last 10 years.