COURT HOUSE — Middle Township Administrator Mark Mallet Feb. 17 made a budget revenue presentation to Township Committee, and noted that the biggest challenge for 2010 would be aid from the state or the lack thereof.
According to the three previous years’ budgets, energy receipts tax and other state aid to the township has steadily decreased from $4.34 million in 2007 to $4.24 million in 2008 and $4.07 million last year. Energy receipts tax is a fee that township receives from utility companies for infrastructure — wires and pipelines for example — located within the municipality.
The unknown factor this year isn’t whether state aid will decrease, but rather how much it will decrease. State aid makes up approximately 18 percent of the township’s total revenue, Mallet said.
Gov. Christopher Christie has vowed to cut state costs and has already reduced aid to school districts statewide.
Deputy Mayor F. Nathan Doughty noted that Middle Township School District alone is scheduled to lose $800,000 in state aid. Christie is forcing school districts to use up their budget surpluses in lieu of receiving aid.
“Who knows what’s going to happen with municipalities?” he wondered.
Mayor Susan DeLanzo said if towns were forced to do the same, they would be stuck in a bad situation if an emergency arose.
“If you have a storm, you might as well forget it,” she said, knowing that the township was set to approve over $200,000 in storm-related expenses at that very meeting.
Committee members agreed that it seemed the township would be punished by the state for being fiscally responsible by keeping an adequate sum in its surplus accounts.
Mallett noted that other revenue sources such a user fees and licenses as well as interest on investments are flat, but township costs are rising.
Last year, Middle Township adopted a $21.3 million municipal budget, which included $10.8 million raised from local taxes for a tax rate of 33.2 cents per $100,000 of assessed value. Property owners saw a 1.2-cent increase in local purpose taxes for 2009.
With a significant reduction in state aid in 2010, the township would have few options — it could increase the tax rate, cut employee costs or reduce services. None are likely to be popular decisions and should make for interesting budget hearings this year in Middle Township and other municipalities throughout the county.
Contact Hart at (609) 886-8600 Ext 35 or at: jhart@cmcherald.com
Lower Township – Who are these people that are obvious experts on trash cans and leaf pick-up? Maybe they don't have any trash to put out or leaves in their yard!!
