SOUTH RIVER – A public hearing has been scheduled on May 14 for the $17.8 million budget that will fund the operation of South River during 2018. The budget may be adopted by the council at that time.
The 2017 municipal budget totaled $17.6 million, Borough Administrator Jack Layne said.
In 2018, the borough will collect a local tax levy of $9.49 million from South River’s residential and commercial property owners. The 2017 tax levy was $9.27 million.
The municipal tax rate will increase from $2.254 per $100 of assessed valuation to $2.311 per $100. In 2017, the average home in the borough was assessed at $81,907 and the owner of that home paid $1,846 in municipal taxes. In 2018, the average home is assessed at $81,988 and the owner of that home will pay $1,892 in municipal taxes.
Municipal taxes are one item on a property owner’s tax bill, which also includes South River school taxes and Middlesex County taxes. The amount a property owner pays in taxes is determined in part by the assessed value of his home and/or property.
Councilman Ryan Jones discussed the budget during the council’s April 23 meeting. He said this year’s municipal tax rate represents the lowest tax increase since 2014. Jones said the four major items placing pressure on the budget are group health benefits, annual pension costs, a contractual police salary increase and sewer treatment costs.
Jones said opportunities for new revenue include vacant properties, monthly Buzz ads, payment in exchange for parking and electric investment. He said long-term concerns include an aging sewer infrastructure, aging parks and aging borough assets.
The aging sewer infrastructure “is a very serious problem in our town. Like a lot of other old towns, we have a sewer infrastructure that is over 100 years old and it is costing more and more each year to provide maintenance and repairs [to] the infrastructure that is breaking down,” he said. “We have water main breaks all the time and sewer issues.”
Jones said very little investment has been made in South River’s parks over the past 30 years.
Capital improvements for 2018 will include sewer main repairs, manhole repairs, road improvements, fire hydrant replacement and vehicles for the police and public works departments, Layne said.
Layne said officials anticipate only typical part-time staff hires for seasonal work in various departments. No employees are expected to retire and no municipal departments are being eliminated or consolidated.
Jones said there will be a special presentation on May 14 regarding the upcoming revaluation of every property in South River. The borough has been directed by Middlesex County to bring assessments up to current market levels. At present, properties are assessed at between 30 and 40 percent of their market value, he said.
Jones said every property will be inspected and each property owner will receive a new assessment. He said a new tax rate will be developed based on the new assessments.
Contact Vashti Harris at vharris@newspapermediagroup.com.
