Tax Levy Increase In Howell Municipal Budget

HOWELL, N.J.—The Township Committee has adopted its 2022 municipal budget, with an estimated 3.69 percent increase from 2021 in the municipal purposes tax levy.

The municipal purposes section of the tax levy (not counting schools and other taxes) is $30,280,000, up from $29,201,215 last year, said Louis Palazzo, chief financial officer for Howell.

The municipal purposes total spending was $55,562,000, but was reduced by various revenues, such as permits, surplus, and other revenues, Palazzo said. Last year, the spending was $54,843,000, before revenues.

"I feel we have a responsible spending budget," Palazzo said, adding the adoption was voted on May 10.

The current-year residential assessment rose from $372,000 to $417,000 for the average assessed home, he said.

He said it's difficult to paint the tax impact for individual homeowners "with a broad brush." But for the average assessed valuation, a homeowner could expect an increase of $58 over one year.

The municipal purposes budget is just part of a larger township budget including still-estimated costs for local and regional school budgets, Monmouth County and fire district taxes, a reserve for uncollected taxes, among other taxes, Palazzo said.

The total estimated budget (including municipal spending) is $176,995,764.90, up 5.28 percent from last year's amount of $168,124,368.70.

Overall, the ratable base increased since last year from approximately $7.6 billion to $8.5 billion, meaning the municipal purposes tax rate actually decreased by 7.24 percent, from .387 in 2021 to .359 this year, he said.

At this point the overall budget is still estimated for school, county, fire district and other taxes, he said.

As finalized figures come in, the new tax bills will be prepared for distribution in July, he said, and will await approval by the county Tax Board. The first payments would be due in August, with a grace period to be determined once all budgets are state certified, he said.

The amount of tax individuals pay is based on their property's assessment, Palazzo noted. But under the county program of adjusting ratables to market value every year, "it avoids the big swings," in taxation from assessments performed every five years.

Palazzo said the municipal budget included "normal increases" for pension and health insurance. Overall, the various unions representing township employees, including police, saw salary increases of 2 percent.

He said "nominal amounts" were added to line items to address inflation, such as gasoline purchases and utilities. He noted there are ways to remedy any unusual spikes in those costs.

Send local news tips to Pat McDaniel at patricia.mcdaniel@patch.com.