Tax increase part of Upper Freehold budget
Without state aid adjustment, rate would increase 2.4 cents
BY JANE MEGGITT Staff Writer
Taxes for the average homeowner in Upper Freehold are expected to rise a total of $198 this year.

If the township passes its proposed $6.5 million 2008-09 budget, a house assessed at the township's average of $519,800 would pay an estimated $125 more in municipal taxes this year. Residents also have to pay $21 in county taxes and $52 in regional school taxes.

The Township Committee introduced its 2008-09 spending plan in a 4-0 vote at its April 17 meeting. Committeewoman Lorisue Horsnall Mount was absent.

Township Auditor Michael Cesaro said 74 percent of a resident's taxes goes to the regional school district, 15.5 percent goes to the county, 8.1 percent goes to the municipality and 2.4 percent goes toward open space. Cesaro noted that although voters approved an additional 2-cent open space tax in November, the governing body decided not to impose the tax due to controversy over the wording of the ballot question.

Cesaro reported that the state has slashed aid to the township by $72,619. He said that if the governor's office restores any of the aid, the money would be directly applied to tax relief. The tax increase is currently set at 2.4 cents per $100 of assessed value but could decrease to 1.9 cents with the aid, he said.

Cesaro said that over the past seven years the municipal tax rate has risen only 6 cents.

Although the proposed budget reflects a $147,977 decrease in spending from last year's budget, the amount the town has to raise for the budget through taxes would increase $358,016, from about $1.5 million in 2007 to just over $1.8 million this year.

Besides a reduction in state aid, the township also anticipates a $30,000 decline in uniform construction code fees and a $23,280 decrease in other special items of revenue.

The bulk of the $6.5 million in appropriations would go toward the township's general operations, which would get $3.7 million. The reserve for uncollected taxes would get $1.3 million, municipal debt service would get $985,338, capital improvements would get $333,000 and deferred charges and statutory expenditures make up the rest of the appropriations at $263,444.

Of the general operations costs, 26.5 percent are for the general government, 14.5 percent are for the public works, 14 percent are for public safety, 11.5 percent are for insurance, 7.8 percent are for code enforcement and administration, 5.3 percent are for utilities, 4.6 percent are for parks and recreation, 3.8 percent are for municipal court, 3.3 percent are for health and human services, 3.1 percent are for land use administration and 5.6 percent fall under miscellaneous.

While the amount budgeted for utilities rose by 12.14 percent and the amount budgeted for public safety rose nearly 17 percent, other areas of the budget saw decreases. Insurance costs are down by 7.16 percent, land use administration costs are down nearly 5 percent, public works costs are down 2 percent, and general operations, municipal court and code enforcement costs either decreased or rose less than 2 percent. Capital improvements costs are also down 10 percent, and the reserve for uncollected taxes has decreased 16 percent.

At 1.6 percent, the amount of township debt is well below the state's limit of 3.5 percent, according to Cesaro. The net debt of the township as of Dec. 31, 2007, was almost $18.6 million. The township has a remaining borrowing capacity for future use of just over $22 million.

Almost $14 million of the township's debt is for open space preservation and conservation. Roads account for 27.9 percent, buildings and equipment for 7.4 percent and parks for 4.9 percent of the debt.

Former mayor Bob Abrams, who has been a critic of previous township budgets, praised the committee for its work on the proposed 2008-09 spending plan. However, he expressed concern about foreclosures in the township affecting the anticipated tax collection rate.

Cesaro said the township anticipates a 94 percent collection rate, down from 97.68 percent last year.