By Mark Rosman
Staff Writer
ALLENTOWN – The Allentown Borough Council has adopted a $2.44 million budget for 2017 that will raise municipal taxes by about $21 for an individual who owns a home assessed at the borough average.
A public hearing on the budget was held during the council’s April 18 meeting. Chief Financial Officer June Madden reviewed the budget with Mayor Greg Westfall, council members and residents.
The $2.44 million budget will be supported by a tax levy of $1.54 million to be collected from residential and commercial property owners, according to the budget document.
Officials will use $380,400 from Allentown’s surplus fund (savings) as revenue and expect to receive $131,595 in state aid.
Madden said the 2017 municipal tax rate will be 79.9 cents per $100 of assessed valuation. The average home is assessed at $289,483 and the owner of that home will pay $2,312 in municipal taxes.
Allentown’s 2016 budget totaled $2.36 million and was supported by a $1.52 million local tax levy, $302,000 from surplus and $131,595 in state aid.
The municipal tax rate has a different impact on each property owner depending on the assessed value of his home and/or property.
Municipal taxes are one component of a property owner’s total tax bill. Allentown property owners also pay Upper Freehold Regional School District taxes, Monmouth County taxes and a local open space tax.
School taxes account for 63 percent of every tax dollar paid by an Allentown property owner; municipal taxes account for 25 percent; county taxes account for 11 percent; and local open space taxes account for 1 percent, according to municipal officials.
Madden estimated that Allentown’s total tax rate for 2017, which includes all of the taxing entities, will be $3.15 per $100 of assessed valuation, which means the owner of a home assessed at the borough average can expect to pay total property taxes of about $9,116.
Appropriations in the 2017 budget include the following: public safety, $616,076; general government, $390,167; public works, $280,400; debt, $235,461; statutory expenses, $181,477; shared services, $176,777; and insurance, $121,200.
Officials have also produced a 2017 budget for the water utility, $659,076 (up from $654,300 in 2016) and the sewer utility, $798,700 (down from $880,121 in 2016).
Madden said savings were realized in several areas of the sewer utility, including a reduction in the debt payment.
The 9.25 percent decrease in the sewer utility budget does not directly impact the sewer rate residents pay, according to Madden. The sewer rate can only be changed by an act of the council.
Madden said the members of the borough’s Utilities Committee are looking at the sewer utility’s rate structure in an attempt to determine if changes can be made.
During public comment, Madeline Gavin, a former councilwoman, commended Madden for her work in producing the municipal budget.
The three budgets were adopted by council President Wil Borkowski, Councilman Robert Strovinsky, Councilman Rob Schmitt, Councilwoman Angela Anthony, Councilwoman Johnna Stinemire and Councilman Thomas Fritts.
