HomeAtl HubAtl Hub NewsTinton Falls council introduces $26.6M municipal budget for 2020

Tinton Falls council introduces $26.6M municipal budget for 2020

TINTON FALLS – The Tinton Falls Borough Council has introduced a $26.59 million budget to fund the operation of the municipality during 2020.

The budget was introduced during the council’s April 21 meeting. A public hearing on the budget has been scheduled for May 19, at which time it may be adopted.

According to a presentation, the $26.59 million budget will be supported through the collection of $16.15 million in taxes from the borough’s residential and commercial property owners. Officials will use $3.63 million from surplus funds (savings) as revenue in the budget. State aid will total $1.49 million.

Tinton Falls’ 2019 budget totaled $26.53 million and was supported in part by the collection of $15.87 million in taxes from property owners. Officials used $3.87 million from surplus as revenue in the budget and received $1.49 million in state aid.

In 2019, the municipal tax rate was 47.2 cents per $100 of assessed valuation. Municipal taxes on a home assessed at $360,000 were about $1,700.

In 2020, the municipal tax rate is projected to decrease to 46.5 cents per $100 of assessed valuation. Municipal taxes on a home assessed at $360,000 will be about $1,674.

Municipal taxes are one item on a property owner’s tax bill. Property owners also pay Tinton Falls School District taxes, Monmouth Regional High School District taxes, Monmouth County taxes and a fire district tax.

The amount of taxes an individual pays is determined by the assessed value of his/her home and/or property and the tax rate that is set by each taxing entity.

According to the budget presentation, expenses in 2020 will include $11.7 million for salaries and wages for borough employees; $7.87 million for other expenses; $2.92 million for statutory expenses; and $2.63 million for debt service.

In the presentation, municipal officials said, “Overall, the budget is a fiscally sound and responsible plan. The budget contains no gimmicks or structural issues.

“The budget provides necessary funding for all municipal services and for continued capital investment in the borough’s infrastructure, parks and equipment.

“The budget allows for the regeneration of surplus used. State aid will remain the same for the 11th straight year.”

Municipal officials said Tinton Falls’ operating expenses have increased by 0.75% from 2019 to 2020. Total budgeted salaries and wages, which are a component of operating expenses, have been held to an increase of 1.24% and debt service remains consistent with the prior year.

The budget presentation includes statements from Moody’s Investors Service as of October 2019 in which the agency said Tinton Falls “has a low debt burden that is favorable in relation to its assigned rating of Aa2. The net direct debt to full value (0.6%) is lower than the U.S. median.

“The credit position for Tinton Falls is very strong and its Aa2 rating slightly exceeds the median rating of Aa3 for cities nationwide.

“Key credit factors include a strong financial position, a very strong wealth and income profile, and a sizable tax base. The borough’s credit position also reflects a low debt burden and a moderate pension liability,” Moody’s said.

Municipal officials have planned capital projects totaling $4.86 million in 2020, consisting of $4.64 million in general capital improvements and $220,000 in sewer utility capital improvements. The borough will use $200,000 in grant funds and $882,000 in direct operating budget capital appropriations, according to the budget presentation.

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