Moorestown Council Looks To Avoid Tax Increase Amid Pandemic

MOORESTOWN, NJ — At a time when people are out of work and the future is uncertain due to the outbreak of new coronavirus, Moorestown Council is looking to avoid raising taxes on residents.

"This year is historic as we are facing record numbers for unemployment," Moorestown Mayor Nicole Gillespie said. "There's all kinds of questions as to when this is going to end, and it doesn't fell right to give the residents a tax increase this year."

Moorestown Township Manager and Chief Financial Officer Tom Merchel had been proposing a 1.1 cent municipal tax increase over last year’s budget, to offset a possible loss of $248,000 in revenues. The township also faces a possible $160,000 increase in its sanitation contract.

During its July 27 meeting, though, Gillespie and the other members of Moorestown Council asked Merchel to consider using the township’s surplus to offset those costs, rather than raising taxes.

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Gillespie said she recognizes taking funds out of surplus is not the best decision, but she feels it's the better alternative to a tax increase. She also asked Merchel if there's a way to cut costs elsewhere.

Last year, Moorestown taxes increased by 2.48 percent, which was less than the originally proposed increase of 5 percent. Read more here: Moorestown Council Adopts Budget With Tax Increases

At that time, Council Members Victoria Napolitano and Mike Locatell asked the township to use surplus to help cover increases in taxes that were due in part to pay for $325,000 to Moorestown Mall owner PREIT for Macy's and Lord and Taylor's tax appeals.

Merchel was hesitant to use surplus funds at that time, but Mayor Nicole Gillespie and Council Members Lisa Petriello and Brian Donnelly decided against using the surplus.

A year later, a pandemic has put a different face on possible tax increases across the country, and the numbers in New Jersey may change again following a second state budget address in August.

Gov. Phil Murphy delivered his first budget address that included state aid figures in February, before the coronavirus pandemic threw the economy into complete disarray nationwide.

Another budget address will take place in late August. Officials across the state said it wasn't clear how that might impact local budgets, but many believe bonds may be issued.

The discussion at the July 27 council meeting was part of a budget workshop, and no official vote was taken.

See more stories about New Jersey's coronavirus recovery.