Quick Notes on the Berkeley Heights Municipal Budget

Overview

• Total Spending: $30.5 million (↓ $1.9M from 2024)
• Raised by Taxes: $17.0 million (↑ $715K from 2024)
• Surplus Used: $4.9 million (↑ $460K)

Revenue:

• Property Taxes: 55% of the budget.
• Surplus (“Rainy Day Fund”): Usage up 10% this year.
• PILOT (Payment in Lieu of Taxes): Up 258% to $2.15 million. These are payments from developers instead of traditional taxes — and they don’t fund schools or the county.
• Interest Earnings: Nearly doubled due to better investment returns.
• Construction Fees: Down 21% — could signal a slowdown in new development.

Expenditures:

• Police Department: $4 million in salaries alone. Still the single biggest expense.
• Employee Health Insurance: Nearly $2.93 million
• Snow Removal: Increased by $150K ?
• Legal Costs: Jumped to $365K from $196K — an 86% increase.
• Library Funding: Mandated minimum of $1.47 million.

Notes:

• Surplus: Using more surplus each year without replenishment
• Heavy PILOT Reliance: These revenues are not guaranteed long-term and do not help fund local schools.
• Legal Costs Spike: Could point to litigation, legal disputes, or complex development deals.
• Drop in State Aid: Flat year-over-year despite rising expenses.
• CAP Compliant: The Township stayed within the 2% tax levy cap.
• Banked Capacity: $2.4 million in unused tax cap bank is still available for emergencies.
• Strategic Shared Services: Includes court, health, and I.T. support from neighboring towns.

Link to full budget as 0f 04/08/2025 426pm.

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