Moorestown Holds Line On Taxes Amid Coronavirus Pandemic

MOORESTOWN, NJ — Moorestown Council held the line on taxes when it approved this year’s proposed budget Monday night.

Council unanimously approved the proposed $26,480,000 budget that carries no tax increase during Monday night’s meeting at town hall. The overall budget is up $278,000 (1.6 percent) over last year. The proposed utility budget is $10,450,000.

The vote came a few months later than in a typical year as New Jersey continues to struggle during the coronavirus pandemic. The township introduced the budget on Aug. 10, a few weeks before Gov. Phil Murphy delivered an updated state budget proposal.

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While Murphy called for more taxes and revenues to help offset the impact the pandemic is having statewide, local officials did all they could to keep taxes from increasing. Read more here: Gov. Murphy: More Taxes, Funds Needed In NJ Budget Amid COVID-19

Earlier in the year, Township Manager and Chief Financial Officer Tom Merchel had suggested increasing taxes to offset a possible $548,000 loss in revenues. That number includes $248,000 in "at-risk" revenues and $300,000 in various other sources.

However, council didn't want to see taxes raised when people are struggling during a pandemic. Read more here: No Tax Increase In Moorestown’s Proposed Budget Amid Pandemic

As a way to keep taxes down, the township is further tapping into its fund balance, or surplus. According to Merchel, the township's surplus at the end of last year was $8,211,878. To balance the budget, the township will be using $3,215,000 of that surplus, which is $610,000 more than what was used last year.

In addition to the projected revenue loss and appeal payments, the township's sanitation contract increased by $160,000 from last year. The reserve for uncollected taxes increased by $283,000 due to a decline in last year's collection percentage. The township anticipates an increase of $829,000 in unpaid taxes this year.

Pension contributions increased by $108,000, largely for police members, and the required library appropriation increased by $71,000. Debt service went up by $207,000, but that was offset by $165,000 in revenue to pay off the note principal.

Salaries and wages decreased by $49,597 (0.57 percent), as positions that have become vacant are not being filled. Group insurance premiums went down $140,500 (6.13 percent), and the township's capital improvement fund contribution went down by $145,000 to offset other increases.

Moorestown also continues to pay for tax appeals filed by Macy's and Lord and Taylor's. The budget continues to carry $850,000 from that judgement, according to Merchel. The township will need to raise $325,000 each year for the next three years to pay for the settlement, and $525,000 each of the next two years to pay for the appeal.

See more stories about New Jersey's coronavirus recovery.