Tax Rate Down, Tax Levy Up: Officials Explain Stafford Budget

STAFFORD, NJ — What's the difference between a tax rate and a tax levy? Some residents were confused about Stafford's 2024 municipal budget, so Mayor Rob Henken and CFO Doug Gannon sat down together to explain in detail.

The two spoke in a Mayor's Briefing video shared to the official Stafford Township Facebook page to shed some additional light on the proposed budget. Read more: $56 Million Municipal Budget Introduced In Stafford

Gannon explained that the tax rate has decreased in the new budget. However, there is a one percent increase in the tax levy - which is where some people got confused.

"We've actually increased over $59 million in taxable value in the prior year. Most of that, $54 million of that, is specifically residential properties," Gannon explained. "So naturally, we have more taxpayers to pay taxes. Therefore, the levy will go up, because we're collecting for more people."

A tax levy increase will also help to build up the surplus, which is needed "basically to have financial stability and flexibility," Gannon said.

Gannon referenced Super Storm Sandy, where the township only had about $3 million in surplus and ended up needed $7 million in special emergency funds, he said. The township lost about $1.8 million in tax revenue and that was funded through a disaster loan, he said.

That wouldn't have happened with a larger surplus, according to Gannon.

"I look at a surplus as being kind of a rainy day fund as well for emergencies and things like that," Henken said. "As well as things like a higher surplus increases our bond rating and we can borrow money at a cheaper rate."

Henken said that he sees the budget as "very positive."

"Everything we're doing now is setting up the future Stafford," Henken said. "Ten years from now, they'll be able to reap the benefits of what we're doing now."