Hopewell Township property owners will see a slight increase in the municipal tax rate in 2018 under the $23.1 million municipal budget adopted by the Township Committee on April 23.
On a motion to adopt the budget, Mayor Kevin Kuchinski, Deputy Mayor Julie Blake, Committeewoman Kristin McLaughlin and Committeeman Michael Ruger voted “yes.” Committeeman John Hart voted “no.”
Though he did not fundamentally object to the budget, Hart said he voted against the spending plan because the township did not sell the Pennytown property and put it back on the tax rolls.
Township Administrator Elaine Borges said the 2018 budget of $23.1 million is nearly $300,000 less than the 2017 budget of $23.4 million, or nearly a 1 percent reduction.
There is money in the budget to hire more personnel, including a police officer, as well as a custodian and a laborer in the Department of Public Works. There are new positions in the Community Development Department, too.
The 2018 spending plan calls for raising $15 million in property taxes from residential and commercial property owners to support the budget, compared to $14.6 million that needed to be raised to support the 2017 budget.
The municipal tax rate will increase from 37 cents per $100 of assessed valuation to 38 cents per $100. This means the owner of a house assessed at the township average of $464,196 will pay $1,763 in municipal property taxes. A house assessed at the same amount in 2017 paid $1,717 in municipal taxes.
The municipal property tax accounts for 13 percent of a property owner’s total tax bill, which also includes school taxes and county taxes.
Other sources of revenue in the budget include the use of $1.9 million from surplus (savings) and $1.6 million in state aid. Shared service agreements with Hopewell Borough for police services and with Pennington Borough for police dispatch services will generate $514,000 in revenue.
Miscellaneous revenues will produce $1.6 million, including $381,770 in fees and permits, $319,000 in fines and costs in Municipal Court, and $224,000 in interest on investments and deposits.
Kuchinski said township officials have tried to deliver a responsible budget. Several actions are underway to support that goal, he said, including the sale of the Pennytown property the township bought several years ago in anticipation of redeveloping the parcel.
Municipal officials would like to take steps to promote Hopewell Township’s recreational, historic and cultural aspects in order to create a tourist destination that would bolster existing businesses, Kuchinski said.
Other efforts – all aimed at reducing the dependence on residential property taxes to support the budget – include attracting a commercial tenant to occupy the soon-to-be-vacated Bristol-Myers Squibb Co. property, as well as exploring non-tax sources of revenue such as cell tower rental fees and a hotel tax.
Blake said the Township Committee is holding the line on property taxes, even as it hires new personnel and increases the hours for the assistant in the Recreation Department. Long-term dedicated staff members were recognized for their efforts and given merit raises, she said.
“Even with these new staff hires and raises, our total operating budget will be less in 2018 than it was in 2015,” Blake said.
The 2015 municipal budget was $24.6 million and needed to raise $14.3 million in property taxes.
McLaughlin and Ruger also expressed support for the budget, with Ruger calling it “a responsible, rational budget.”
