FREEHOLD TOWNSHIP – The Township Committee has introduced a $42.6 million budget to fund the operation of Freehold Township this year.
The 2020 municipal budget was introduced by committee members on March 24. A public hearing on the budget is scheduled for 8 p.m. April 28. The committee may adopt the budget that evening.
The $42.6 million budget, which may be amended prior to its final adoption, will be supported by the collection of $22.6 million in taxes from the township’s residential and commercial property owners. Other revenue includes $7.44 million in state aid.
Freehold Township’s 2019 budget totaled $41.6 million and was supported by the collection of $21.5 million in taxes from property owners. Other revenue included $7.44 million in state aid, which has been flat for eight years.
In 2019, the municipal tax rate was 33.2 cents per $100 of assessed valuation. The average home in the township was assessed at $420,287. The owner of that home paid $1,395 in municipal taxes.
In 2020, the municipal tax rate is projected to be 33.6 cents per $100 of assessed valuation. The average home assessment in the township is now estimated to be $426,464. The owner of that home will pay $1,433 in municipal taxes.
Municipal taxes are one component of a property owner’s tax bill, which also includes Freehold Township K-8 School District taxes, Freehold Regional High School District taxes, Monmouth County taxes, a fire district tax and other assessments.
Individuals pay more or less in taxes depending on the assessed value of their home and/or property and the tax rate that is set by each taxing entity.
“The COVID-19 pandemic has caused some challenges with the current budget,” Mayor Lester A. Preston Jr. said. “We have anticipated a decrease in revenues from our Construction Department due to anticipated delays in construction activity. We have also reduced anticipated revenues from the municipal court by assuming a minimum of two months with no court cases.
“In addition to the virus, there are several items that will impact the budget this year. Recycling disposal continues to be an increasing cost, rising another $75,000 this year.
“For several reasons, we needed to bolster our police vehicle fleet (and) this was an $83,000 increase. We are again preparing for upcoming retirements in the police department, which will require us to temporarily increase our number of officers.
“Doing that will result in a larger than normal increase in police salaries and wages of approximately $300,000. Our pension bills to the state for police pensions increased by approximately 7.5% ($150,000),” the mayor said.
“Despite these pressures, we were able to deliver a budget that was, once again, under the allowable municipal tax levy cap. As evidenced by our recent bond rating upgrade to AAA, the township’s budget fundamentals remain strong, despite the many uncertainties on how the COVID-19 pandemic will affect operations and the tax base as a whole.
“The tax rate has not been struck, but we estimate a 0.4-cent increase in the tax rate for the municipal portion of the tax bill, which will result in an average increase of approximately $38 for an average home (assessed at) $428,000.
“Like Freehold Township, I would imagine that all municipalities are concerned with the impact on the local economy once we emerge from our current crisis and how that will affect municipal operations and the budget heading into 2021,” Preston said.
