Strong Fiscal Policy Helped Keep Taxes Low In East Brunswick: Mayor

EAST BRUNSWICK, NJ — In March Mayor Bard Cohen announced that residents should expect only a “marginal” increase in taxes this year. Residents of East Brunswick will see an increase of 0.75 percent in their taxes this year, thanks mainly to the township’s strong fiscal policy.

Last week, Cohen addressed residents of the township and explained how the local government managed to keep taxes low, especially at a time when inflation is high across the country.

The overwhelming message on taxes this year is the net effect of lower school tax, minor municipal increase and flat county tax should net out to be a "once in over 30-year tax decrease" Cohen said.

Property taxes in New Jersey are made up of three parts: school, municipal, and county. Cohen said municipal staff worked with all agencies that make up the tax bill to ensure the final bill remained flat.

Municipal taxes make up around 20 percent of property taxes in the township. This year’s increase, 0.75 percent, will amount to about a $50 to $60 increase per year for most residents, Cohen said. Staff came up with this number based on the township’s ability to control expenses while continuing to provide residents with services they need, Cohen said. The municipality has been “strict with their expenses” and has had “strong fiscal control.”Read More: Municipal Budget Includes 0.75% Tax Increase In East Brunswick

With various township redevelopment projects well on their way, East Brunswick is also beginning to collect revenue from places that “have not been paying their fair share,” Cohen said.

One of the biggest expenses for the municipality is salaries. Over the next five years, township employees will be getting a 2.5 to 3.5 percent increase in salary. These numbers are going to be predictable and manageable over the next five years, Cohen said.

Another area where the township has been able to save has been garbage collection. The garbage and refuse contract for East Brunswick expires in 2024. This ensures that costs are controlled for the next two years at a time when other towns are seeing a 50 percent increase over the last year, Cohen said.

None of the township’s savings have resulted in cutting down of services, Cohen confirmed. The Parks and Recreations Department has not cut down on its programs and road work across town continues. Much of the funds for road work come from federal grants and they don’t affect property taxes, Cohen said. Read More: $1.6M Grant To Repair Dunhams Corner Road In East Brunswick

“This marginal increase on the municipal side is providing you with a wealth of services and we’ve cut back on nothing,” Cohen said.

Even the school district has contributed its fair share towards lowering taxes in the township, Cohen said. Last year, East Brunswick schools got $5 million in state aid, this helped keep the tax rate flat for the school boards.

This year the school district got $7.5 million in state aid, further reducing their “need from property taxes,” Cohen said. Read More: East Brunswick Will See An Increase Of $7.4M In State Aid

"We expect that there is going to be a 0.73 percent decrease in the school’s levy and since they make up 62 percent of your tax bill, their decrease more than makes up for any marginal increase that the town put,” Cohen explained.

As far as county taxes were concerned, they will remain relatively flat this year, according to an announcement made by the county.

Summing up the staff’s work in keeping taxes low, Cohen said it was not “a one-time trick. The formula is sustainable and hope to continue in the next couple of years. Our expectation is taxes should be able to stay on a stable trend.”

Watch the mayor's message here:

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