Hopewell Borough council members unanimously voted to adopt a $3.33 million budget to fund municipal operations for 2020.
Council President C. Schuyler Morehouse, Councilman Chris Fossel, Councilman Ryan Kennedy, Councilman David Mackie, Councilwoman Samara McAuliffe and Councilwoman Debra Stuhler voted “yes” on the measure at a June 4 council meeting.
Borough officials are expecting a reduction in revenue during 2020 due to the ongoing coronavirus pandemic.
“The 2020 budget anticipates a reduction in a variety of revenue sources (fees, permits, municipal court fines, interest, etc.). We have tried to factor those reductions into the budget, using best estimates/guesses in this unprecedented time,” said Michele Hovan, borough administrator for Hopewell. “We were able to offset those losses in revenue with reductions in expenditures throughout the budget combined with a slight increase in the use of surplus to keep the levy flat.”
The borough is not cutting any specific services with the 2020 budget, Hovan said.
“There is an expectation that some operational costs will decrease due to the cancellation of events, utilities for buildings and maintenance, etc.,” she said.
Residential and commercial property owners are projected to pay a $1.99 million tax levy to support the 2020 budget.
The budget does not include an increase in the municipal tax rate, which is expected to remain stable at 62.9 cents per $100 of assessed valuation.
The owner of an average home that is still assessed at $426,000 will pay $2,679 in municipal taxes to support the budget.
Municipal taxes are one item on a property owner’s total tax bill, which also includes school taxes and Mercer County taxes.
The amount an individual pays in taxes is determined by the assessed value of his home and/or property, and the tax rate that is set by each taxing entity.
The 2019 budget totaled $3.26 million. Residential and commercial property owners paid a tax levy of $1.99 million to support the budget.
In the 2019 budget, officials used $271,000 from the surplus funds as revenue in the budget.
For 2020, officials will use $304,000 from the surplus funds as revenue in the budget.
In addition to property taxes and funds from surplus, revenues in the 2020 budget are projected to include $657,000 in miscellaneous revenues and $170,000 in state aid.
The borough’s appropriations for 2020 include: $578,000 in salary and wages, $520,000 in shared service agreements, $435,000 (debt service), $247,000 to sewer, $175,000 in capital improvements and $171,000 to insurance.
Hopewell Borough’s budget covers the cost of providing public safety including law enforcement through the police department, general government, public works, salaries and wages, shared service agreements, and insurance.
