Township Auditor Outlines Tax Impact of Proposed 2011 Municipal Budget

Township Auditor Gary Vinci told councilmen Monday night that if they choose to introduce and adopt the 2011 municipal budget currently on the table, it will cost the average homeowner, with a house assessed at $543,000, $26 more per year.

That figure takes into account an $8 annual decrease in the cost of the township library, Vinci said, and does not include changes to the school and county portion of residents' tax bills.

Vinci talked about the township surplus, which he said sat at $1,922,000 at the end of 2010. He said in the current version of the municipal budget, officials are planning to use $1,120,000 "to offset the costs that you've incurred."

He told government officials to keep in mind that the township got more tax appeals last year than normal, which could affect the the tax collection rate, which could in turn affect the surplus. In the most current version of the 2011 budget, officials stated that any tax amount collected over 97.7 percent would go to surplus.

In 2007, Vinci said the tax collection rate was 99 percent. But he said in the past two years, it has come down to 98.2 percent due to the poor economy. With a lower difference, less money lands in surplus.

Vinci explained that officials could lower the 97.7 percent figure, but it would increase the amount the township would have to collect through taxes. He estimated that lowering the collection number to 97.5 percent would equate to an additional $70,000 to be raised through taxes, which would mean an additional $15 to $18 for the average homeowner.

Councilmen have time to make that decision, according to Vinci, because they will have until the public hearing in May to make changes to the budget.

"What you introduce is not necessarily what you are locked in to for the rest of the year," Vinci said.

Council President Fred Goetz asked what it would take to bring the tax increase for the average homeowner down to $0. Vinci said it would be a $35,000 cut to the entire spending plan.

Goetz also asked if the council were to decide to cut the budget by $35,000 at the next council meeting prior to the introduction, if they would have to re-advertise the spending plan. Vinci said the law states that if a line item in the budget is changed by 10 percent, officials have to re-advertise because it is considered a major amendment.

Mayor Janet Sobkowicz said she was worried about the amount of surplus that will be generated this year for the 2012 budget. She said because the township doesn't have any projects that will bring in significant amounts of money, "I don't believe we'll build up as much surplus in 2011 as we did in 2010."

Councilmen plan to introduce the 2011 municipal budget during the regular council meeting scheduled for Monday, April 11 at 7:30 p.m. in the municipal complex, 350 Hudson Ave.