MIDDLETOWN – The Township Committee has introduced an $83.45 million budget to fund the operation of the municipality in 2020.
The budget was introduced during a committee meeting on April 20. A public hearing on the budget has been tentatively scheduled for May 18.
Mayor Tony Perry, Deputy Mayor Anthony Fiore, Committeeman Rick Hibell, Committeeman Kevin Settembrino and Committeewoman Patricia Snell voted “yes” on a motion to introduce the budget.
Details of the budget were presented by Chief Financial Officer Colleen Lapp.
The 2020 budget will be supported in part by the collection of $55.2 million in taxes from Middletown’s residential and commercial property owners.
In 2019, the municipal budget totaled $80.32 million and was supported by a local tax levy of $54.15 million. For 2020, appropriations are up $3.13 million and the tax levy is up $1.05 million from the previous year.
Officials said the 2020 budget as introduced “represents an ongoing commitment to minimizing costs while maximizing revenue and services.”
“Despite the global pandemic and declining revenues, the Township Committee has once again delivered a fiscally responsible budget without reducing services, continuing to invest in our parks and recreational facilities, and spearheading initiatives that protect Middletown’s most vulnerable residents,” Perry said.
“This budget represents the fiscal solvency and stability to withstand this crisis and lost revenues; however, it hinges on Middletown and the state getting back on its feet,” the mayor said.
Lapp said 32.5% of the $83 million budget would be accounted for in salaries and wages; 18.67% in operating expenses; 15.2% in insurance costs; and 9.36% in debt service payments.
The CFO said some full-time municipal positions have been or would be converted to part-time positions when a full-time employee retires or leaves a position.
In 2019, the municipal tax rate was 47.8 cents per $100 of assessed valuation. The average home in the township was assessed at $444,180. The owner of that home paid about $2,123 in municipal taxes.
In 2020, the municipal tax rate is projected to remain stable at 47.8 cents per $100 of assessed valuation. The average home in the township is assessed at $448,197. The owner of that home will pay about $2,142 in municipal taxes.
Municipal taxes are one item on a property owner’s tax bill. Property owners also pay Middletown Township Public Schools taxes and Monmouth County taxes. The amount an individual pays in property taxes is determined by the assessed value of his home and/or property, and the tax rate that is set by each taxing entity.
Lapp said for each $1 in taxes that is paid by a property owner in Middletown, 62 cents goes to the school district, 23 cents goes to the municipality and 11 cents goes to the county.
According to municipal officials, “key drivers to the budget this year include planning for increased costs in response to a new law protecting firefighters and other first responders, and operational storm response savings.”
They said Middletown “continues to realize savings through a variety of revenue-enhancing shared service agreements with other municipalities, the Middletown Board of Education, and Monmouth County.”
Workers compensation increased $500,000 due to an increase in claims in 2019 and planning for increased costs due to a new law protecting firefighters and other first responders, according to the Township Committee.
The has been an increase in the medical and prescription appropriation by $250,000 due to the township’s claims history, and contractual police salary increases of approximately $400,000.
Through purchasing more fuel-efficient vehicles and a favorable commodities market, the township has saved about $100,000 in fuel costs, according to municipal officials.
Lapp said one key component in the budget is Middletown’s commercial properties, which account for 2.48% of the tax base, but pay 10.33% of the $55 million municipal tax levy.
“That (payment by commercial property owners) helps to ease the burden on our residential property owners,” she said.
Settembrino thanked Lapp, her staff and the administration for producing what he called “a fantastic budget” and he said, “The (stable tax rate from 2019 to 2020) shows the restraint of this administration and municipality.”
Fiore said he was concerned “with a lot of people and businesses who are hurting right now in Middletown (during the coronavirus pandemic). We need a reasonable plan that balances health and making the world work; we need that (soon).”
Perry thanked Lapp and Township Administrator Tony Mercantante for their work on the budget. He said the 2020 spending plan “maintains the services (residents) expect and deserve (and) it maintains the safety and well-being of our township employees.”
