Middle Offers Zero-Hike Budget

COURT HOUSE — Middle Township Committee introduced its 2012 budget during the March 19 meeting. The $20 million budget calls for no municipal tax increase.
But the method used to come up with a zero increase for this year may mean committee has its work cut out in future budgets.
“The first question on everyone’s mind is “Is there going to be a tax rate increase?’” said Township Administrator Mark Mallett. “The short answer is no, there will not be. The tax rate will remain at 39 cents per $100 of assessed value.”
Due to the township’s recent compliance plan, the township’s ratable base was decreased by $142 million, resulting in a $542,000 decline in the local purpose tax.
“If you look at this budget, it was important for committee not to have a tax increase,” said Mallett. “So when you look at the 2012 revenues, it includes some non-recurring revenues such as using additional surplus and using land sale reserve money.”
According to Mallett, the township is cognizant that those monies are non-recurring and when the 2013 rolls around, they hope to replace that with recurring revenues.
“I’m happy that we were able to really roll up our sleeves and deliver a budget that does not increase taxes this year, especially given the challenge that we had to overcome,” said Mayor Daniel Lockwood.
“We certainly have created a situation where we potentially have some challenges in 2013 as a result of how we handled the budget this year, but I am willing to take those challenges on. I think it’s our job now to reexamine some of the policies that we have, that drive costs her,” said Lockwood. ‘The way that we are really going to manage taxes going forward is by managing our debt.”
Lockwood said he was cognizant that property values had not gone up and people’s salaries, for the most part, have not increased over the past year.
He also said under pension reforms, the township saved $230,000 in employee pension contributions.
According to Committeeman Timothy Donohue, he hoped the 2012 budget showed that committee was committed to not raising property taxes this year.
”Did we do it in the most conventional way?” asked Donohue. “No, we didn’t. Are we going to need to find more systemic reforms to make this be a lasting thing and start to bend the curve downward? Yes we are,” he said. “But by presenting this budget and holding the line on taxes, it challenges us to find solutions.”
“So, given this new dynamic, we need to be diligent in understanding what drives taxes and make sure we manage those things long term. I’m confident that we can be pay as you go by 2016.”
Madelyne McCarroll, a resident of Court House, thanked committee for its work bringing in a zero-tax-increase budget.
“It’s sending hope to a community that has long lost hope that they could keep up with their taxes,” she said. “Five or six years ago, when our taxes were raised so high, people cried that they were not going to be able to maintain their homes,” she said, noting those people no longer live in Middle Township.
A copy of the introduced budget is available on the township’s website.