Township Budget Would Increase 1.8 Percent

Township officials are proposing a $.01 increase in the tax rate with a budget increase of 1.8 percent.

The Township Committee introduced the $48 million budget during its meeting Tuesday night, and it will hold a public hearing on the proposal before approving it on June 22. The budget is under the spending cap by approximately $614,000 and below the revenue cap by about $906,000.

Before making the presentation on the budget, Gordon gave a presentation on property taxes in light of the recent proposals from the governor and the need to state aid and other revenue. There was a time when local communities didn't need state aid because officials were able to collect their own taxes and fees. But state officials stepped in and started to collecting the fees on behalf of towns before redistributing them.

State officials promised adjustments to the payments base on inflation, but that never happened, Gordon said. It means the township has not received $11.3 million in aid from the state. It's the equivalent of $.14 on the tax rate.

If local municipalities got the money they should, property taxes wouldn't be as bad as they are in New Jersey, Gordon said.

Municipal leaders need other funding sources to keep down property taxes, and there are recommendations for local taxes like a sales tax or personal income tax, he said.

To offset the loss of state aid—state officials cut Millburn's municipal aid by about $700,000—local officials are proposing to use $4.6 million in surplus. It's an increase from $3.5 million in surplus used a year ago, which is a $1.6 million increase.

Some of the biggest increases in the budget include insurance costs, which carry an approximate increase of $621,000. But Gordon said he foresees insurance costs leveling in the next couple of years because of the recent givebacks from employees.

And while many fees and revenues are down—incuding interest on investments and municipal court fees—building permit fees are starting to increase slightly. Because of the budget formula, Gordon said, the township cannot budget for an increase yet. But the fees are starting to increase slightly compared to a year ago.

One other area Gordon said he hopes state officials change is the need to hold a reserve for uncollected taxes in the budget. Millburn budgets for $2 million even though it has the money available in surplus. If a community has the surplus, it shouldn't have to budget for the reserve, Gordon said. It would save. $.025 in the tax rate.

James Suell, Township Committee member, questioned if any service cuts had been examined, including cutting back on the number of days the Department of Public Works yard is open. Gordon said officials are looking at public works functions and would bring more information to the committee soon.