Budget Talks, Tax Debate Begin In Gloucester Township

GLOUCESTER TOWNSHIP, NJ — In every town throughout the state, each year's municipal budget is accompanied by an ordinance that allows the municipality to exceed the 2.5 percent cap. Gloucester Township Council took the first step in their 2020 budget cycle Monday night when they approved this year's proposal on introduction. Not everyone in attendance was happy about it.

"We need to live within our means," resident David Hague said before council introduced the proposal at its meeting Monday night at the municipal building.

He compared it to when a member of council told him a few years ago that residents had to exactly that. He said there was no reason for council to need to raise the cap. The proposal allows the township to exceed the municipal budget's appropriation limits and establish a cap bank.

The township can increase its budget by 3.5 percent over last year's final appropriations, as opposed to the 2.5 percent cap, and bank the excess.

This year, Gloucester Township is permitted to cap $540,996.37 (1 percent) in excess of the 2.5 percent increase in final appropriations. This brings the total final appropriations increase of 3.5 percent to $1,893,487.30, according to the proposal posted on the township’s website.

"Every time you can bank a cap, you bank it," resident Ray Polidoro said. "Will you ever say no to an increase?"

Business Administrator Tom Cardis said there are things in the budget, such as snow removal and storm cleanup, that the township can't necessarily anticipate the cost of. Being able to exceed the 2.5 percent cap helps the township with budget preparations, Cardis said.

Even with these preparations in the past, the township had to raise taxes in part due to a rare case of two bad storms hitting the region over the course of six months. In April 2016, council approved a 12 percent tax rate increase, citing a storm from the previous summer and a winter storm that occurred four months earlier as contributing factors. Read more here: Council Approves Tax Hike For Gloucester Township Residents

There was no tax increase the following year, and about an 8 percent increase in 2018. There was no tax increase last year. The 2020 municipal budget has yet to be introduced. Polidoro asked what the bottom line might be for this year's budget, but Cardis was unable to say Monday night.

Polidioro asked if the cancellation of some projects and increased revenue from the Gloucester Township Premium Outlets might help keep taxes down this year and over the next three years, but Cardis was unable to say.

Cardis said he couldn't make that promise, as he can't predict what would come up during the budget process. Council approved the proposal on introduction. The public hearing and final vote will take place at the Feb. 24 meeting at the municipal building.