TINTON FALLS – Members of the Borough Council have adopted a $26.9 million budget to fund the operation of Tinton Falls during 2021.
The local tax levy – which is the total amount all of the borough’s residential and commercial property owners pay to support the budget – will not increase from 2020.
The $26.9 million budget, which was adopted on April 20, will be supported by the collection of $16.2 million in taxes from Tinton Falls’ residential and commercial property owners.
Other revenue in the budget includes the receipt of $1.49 million in state aid and the appropriation of $4 million from the borough’s surplus fund (savings).
Tinton Falls’ 2020 municipal budget totaled $26.6 million and was also supported by the collection of $16.2 million in local taxes. Other revenue included the receipt of $1.49 million in state aid and the appropriation of $3.63 million from the surplus fund.
From 2020 to 2021, appropriations have increased by $303,408 and the tax levy has remained stable.
In 2020, the municipal tax rate was 46.5 cents per $100 of assessed valuation. The average home in Tinton Falls was assessed at $358,195. The owner of that home paid about $1,665 in municipal taxes (0.465 x 3,581).
In 2021, the municipal tax rate is projected to be 44 cents per $100 of assessed valuation. The average home assessment is estimated to be $367,074. The owner of that home will pay about $1,615 in municipal taxes (0.44 x 3,670).
Municipal taxes are one item on a property owner’s tax bill, which also includes Tinton Falls K-8 School District taxes, Monmouth Regional High School District taxes, Monmouth County taxes and fire district taxes.
Individuals pay more or less in taxes depending on the assessed value of their home and/or property and the annual tax rate that is set by each taxing entity.
Municipal taxes account for 23% of a property owner’s tax bill. School taxes account for 58% of a property owner’s tax bill. Monmouth County taxes account for 15% of a property owner’s tax bill. The remaining 4% goes to the fire district and municipal open space taxes, according to a presentation on the borough’s website.
In a presentation, municipal officials said the borough’s “budget structure continues to result in a positive position in available cash and reserves, which adds to our ability to stabilize the tax rate and weather economic downturns.”
Regarding the 2021 budget, municipal officials said, “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 (funds) used.”
State aid to Tinton Falls has remained flat for 12 years.
Tinton Falls received a credit rating upgrade in 2020. Municipal officials quoted a Moody’s Investors Service press release dated Aug. 14, 2020, which said, “Moody’s Investor Service has upgraded Tinton Falls’ general obligation unlimited tax rating to Aa1 from Aa2.
“Concurrently we have assigned an Aa1 rating to the borough’s General Obligation Refunding Bonds, Series 2020.
“The upgrade to Aa1 reflects the borough’s increasingly strong finances. The rating also incorporates its above-average resident wealth and income, modest debt, favorable location and above-average pension burden.”
– Managing Editor Mark Rosman contributed to this article.
