Moorestown Draft Budget Brings Almost 5 Percent Tax Rate Increase

MOORESTOWN, NJ — The owner of a $454,000 home in Moorestown could expect to pay an extra $90 in municipal and library taxes combined in the upcoming year if the $26,477,000 draft budget presented during Monday’s council meeting passes without any changes.

That would come out to an increase of about $8 a month for the average Moorestown home. The increase would bring the local property tax total to $1,925.10 for the average Moorestown homeowner.

The spending increase of 3.5 percent would be a little less than the tax rate increase because other revenues that support the budget, including state aid, are flat or decreasing a little (miscellaneous sources including, fees/fines, etc.), according to Moorestown Township Manager Thomas Neff.

The draft water and utility budget is $10,590,000, an increase of $90,000 (0.86 percent) from 2017. Salaries and wages are up $79,300 (4.11 percent), and group insurance decreased by $31,500 (5.49 percent). The capital improvement fund decreased by $339,000 because there were no down payments needed. Debt service increased by $322,700 (20.59 percent). $160,000 was required to change media for temporary treatment at the North Church Street water treatment plant to treat TCE and TCP. The township will use $100,000 less in surplus than last year.

The draft budget presented by Neff to council Monday night is the staff’s budget. It was proposed as dictated under state law for council consideration. Council now has until April 8 to make changes and introduce the budget. The budget must be fully adopted by May 6.

Approval is a big “if,” as council members voiced their disapproval of a 5 percent tax rate increase. There was a 1.22 percent tax rate decrease in 2018.

This year’s proposed increase is due to the impact of tax appeals by Macy’s and Lord and Taylor’s, Neff said. The township must pay $325,000 each year for the next five years to PREIT for Macy’s and Lord and Taylor’s tax appeals, beginning this year.

The inflation of salary and benefits for public employees also contribute to the increase, according to Neff. Salaries and wages will increase by $521,028 (6.21 percent), and group insurance will increase by $43,500 (1.90 percent).

“A five percent increase is absolutely outrageous,” Councilwoman Victoria Napolitano said. “ … We need to have a serious talk about healthcare and pensions because this is unacceptable to me.”
Councilman Mike Locatell said that with $50,000 the county will reimburse to the township, it’s more like Moorestown is paying $275,000 in tax appeals over that time.

“I don’t think anyone likes the idea of a 5 percent tax increase, but this didn’t happen in a vacuum,” Deputy Mayor Nicole Gillespie said. “A lot of things have been neglected. … Infrastructure has been neglected, and we can’t continue to neglect it.”

Councilman Brian Donnelly held out hope that the increase wouldn’t be as drastic as what was proposed Monday night, saying that while taxes have to be raised, there’s got to be a “happy medium.”

“This is what happens when you kick the can down the road,” Mayor Lisa Petriello said. “This is the proposal we end up getting.”

The township will look to lower the proposed increase by finding additional efficiencies or things that can be cut from the budget, Neff said. The township is also hoping for additional revenue from grants, donations and what it calls modest UCC fees.

Long-term, the township is looking to grow the ratable base, including advancing the redevelopment of abandoned sites. It is also looking at selling surplus properties and recover costs from corporate polluters to cover water treatment costs, Neff said.

Some ways the township intends to save include replacing taxpayer-funded professionals with professionals whose services can be reimbursed through the state program, the elimination of a risk management consultant to save $25,000 a year, the reassignment of the manager’s vehicle to save $24,000 a year, $5,000 savings in training costs, association memberships and subscriptions, saving $2,500 by suspending the township’s participation in “classic towns,” eliminating $1,000 in dues for ANJEC and eliminating $225 in dues through Neff not participating in the manager’s association. Tight budgeting by the library eliminated the need for the one-time subsidy it received last year, saving the township $25,000, according to Neff.

Council compensation is expected to remain flat, as is staffing in the recreation department and in the financing department, despite historic lows in that area, according to Neff. There will only be one new hire in the police department, despite historic staffing lows in that department.

At the same time, the township aims to hold on to its high AAA credit rating. Napolitano said the bond rating was important, but not as important as keeping the tax rate low for residents.

The township is also looking to improve the police department’s ability to respond to service calls and address speeding where it is a concern, improve services provided by the Department of Public Works and Community Development and improve code enforcement.

The township also aims to address the following capital projects:

• $3 million for road resurfacing;
• $200,000 for the reconstruction of Elm Avenue, with potential for a grant;
• $250,000 for the second phase of the Borton’s Landing Road mill and overlay project, with potential for a grant;
• $250,000 for the potential second phase of the Garwood Road mill, overlay and drainage improvements project, with potential for a grant;
• $200,000 for miscellaneous drainage improvements;
• $50,000 for town hall improvements;
• $272,000 for vehicle replacements in the Department of Public Works;
• $35,000 for improvements at The Perkins Center for the Arts;
• $25,000 for pedestrian improvements on Main Street;
• $100,000 for Swedes Run Bridge;
• $100,000 for a plan to ensure the use of public assets for those with disabilities;
• $67,000 for Parks and Recreation gymnasium window repairs and shade;
• $10,000 for Parks and Recreation gymnasium air conditioning;
• $350,000 for miscellaneous park repairs and improvements;
• $214,000 for the regular replacement of police vehicles;
• $22,000 for a VERMAC message board trailer for the police department;
• $48,000 for Community Development vehicle replacement;
• $2,068,200 for headworks replacement at the sewage treatment plant;
• $302,000 for primary digester and flame restoration and repair at the sewage treatment plant;
• $29,600 for the replacement of a diesel fuel tank for the emergency generator at the sewage treatment plant;
• $110,000 for a study of the aging sewage treatment plant;
• $375,000 for sewage pump station upgrades;
• $300,000 to repurpose the Kings Highway Water Treatment Plant;
• $350,000 for an asset management plan and comprehensive mapping system of the township’s water system;
• $4,300,000 to account for additional funding for water treatment plant upgrades; and
• $200,000 for the replacement of the water main under Main Street.

The additional funding for the water treatment plants is needed because the lowest bids for two of the plants were higher than expected, according to Neff. The low bid for the Hartford Road Water Treatment Plant was about $1.3 million higher than anticipated, while the low bid for the North Church Street Water Treatment Plant was about $3 million higher than anticipated.

The water main under Main Street is dilapidated and beyond a reasonable useful life. It needs to be replaced in phases because replacement of the whole water main is a massive undertaking, according to Neff. The proposed $200,000 would be for the design of the first phase of the project, from Poplar Avenue to Mount Laurel Road.

Additionally, a parking area is being developed for use by the Esther Yanai Preserve. Funding comes from a private donation.