MIDDLE TOWNSHIP – The Township Committee has introduced a $28.3 million general fund budget for 2025 that raises the tax rate for local purposes by 2.8 cents, or 4.7%.
The owner of a home assessed at the township average, $250,000, would pay an additional $70 in taxes for local purposes under the new budget. Such a homeowner would pay $1,558 this year compared to $1,488 in 2024.
The local purpose tax rate moved from $0.5950 to $0.6231.
The committee also introduced a $6.4 million sewer utility budget that increases sewer fees by 12.5% in 2025, part of a three-year projected rate hike passed by the governing body in 2024. Sewer rate increases in 2026 and 2027 are expected to be in the 5% to 6% range.
External auditor Leon Costello told the governing body that the budget was $77,748 below the 2% state tax levy cap and $717,677 below the appropriations levy cap.
Costello also said the budget was one of the township’s “better budgets in a while,” meaning that the township’s trend toward a stronger financial position continues, a trend he remarked on in 2024 as well.
Major pressures on the budget in 2025 included a state decision not to fund municipal relief aid, which reduced state revenue to the township by $367,000, according to Chief Financial Officer Neil Young.
Rising costs for insurance, health-care premiums and curbside trash pickup all were met by the township with new processes that reduced what would have been significantly higher costs.
Over the course of the last year, the township negotiated a new contract with AtlantiCare for emergency medical services, signed a contract with a new vendor for curbside waste and recycling pickup, and pulled out of the State Employee Health Benefits system and contracted with an alternative provider to gain lower premium rates.
Township revenues show the positive impact of attempts to diversify non-tax revenue streams, including higher interest on investments, fees on short-term rentals, the hotel/motel tax and others. In the coming year the township hopes to add a revenue stream from cannabis sales.
The 2025 budget makes use of $250,000 more in surplus funding than did the budget in 2024. A growing surplus in the township allowed that increase while claiming a smaller percentage of total surplus dollars for support of the budget. As of Dec. 31, 2024, the township’s surplus balance had grown to $4.9 million, up from $4 million on Dec. 31, 2023.
Municipal debt service in the 2025 budget is $110,000 more than in 2024.
Young noted that even with the increase in the local purpose tax rate, the township tax levy represents less than 30% of the total tax bill paid by property owners. Some 54.9% of the property tax bill in the township is due to the school tax.
Mayor Chris Leusner said that while property values have risen in the township, the increases in value in the island municipalities has been greater and more rapid. That has left township property owners with a reduced burden from the county tax, which is apportioned to the 16 municipalities based on growth in the true value of real estate.
The public hearing and possible vote on adoption of the budget is set for Monday, May 5, at 6 p.m. at township hall.
Contact the reporter, Vince Conti, at vconti@cmcherald.com.
