Middle’s $22-million Budget Would Increase Tax Rate

COURT HOUSE – Middle Township Committee voted March 19 to introduce the 2018 budget that calls for a one-cent increase in the property tax rate for municipal purposes. It will increase to .482 cents per $100 of assessed value. The impact of the local purpose tax would be $24.36 more annually for an average home assessed at $242,000, according to data on the municipal website.  
After a period in which the tax rate was flat for five years, this marks the second year in a row when a tax hike was needed for the general operating budget.
The municipal purpose budget stands at just under $22 million. Revenues listed are mostly flat from 2017 with the exception of grants which are often not known at the time of budget introduction. The only significant revenue increase is the $323,000 expected from property taxes due to the rate increase.
The budget makes use of 81 percent of the township’s fund balance or surplus. In 2017 and 2016, the budget used 78 percent and 81 percent, respectively.
Thirteen line items make up 72 percent of the township’s anticipated expenses, the largest being police salaries at $4.85 million, health insurance at $3.8 million, debt service at $1.1 million, and police pensions also at $1.1 million.
Police Chief Christopher Leusner was quick to remind the committee that police salaries reflect the fact that the police department is a 24-hours-a-day, seven-days-a-week, 365-days-a-year operation unlike other departments in municipal government.
It is also the case that average police salaries in New Jersey are among the highest in the nation.
Mayor Michael Clark said that public safety was one of the township’s highest priorities.
Township Auditor Fred Caltabiano frequently pointed to the $141,000 increase in the state pension bill. The underfunded condition of state pensions may result in higher required pension contributions from the municipalities in future years as well.
The budget also reflects a reduction in the amount charged to the water and sewer utility for indirect costs, expenses the township general budget absorbs in support of the utility. The $155,000 decrease in those indirect charges was included in the budget, Caltabiano explained because the utility budget “simply could not meet those payments this year.”
Caltabiano was referring to the higher than expected fees from the county MUA which forced an emergency appropriation to meet the 2017 payments.
The water and sewer utility did see a change in its rate structure designed to encourage conservation by commercial and hotel users, and which is expected to raise additional revenues for the utility by $237,000.
No rate change was included for residential users of the water/sewer system. A rate increase for those users probably would have been required if the indirect cost expenses had not been lowered.
The effect for this year is to have the general taxpayers absorb some of the impact of the MUA increase rather than place the entire burden on the utility’s customers.
A public hearing on the proposed budget will be held on April 16. A copy of Caltabiano’s budget presentation is available here. Access to the budget as introduced is available here. 
Excess Use of Services
The township adopted two ordinances at the same meeting, which hold out the promise of a reduction in township expenses and new revenue to the general budget.
The first of these ordinances was the long-expected regulations regarding excessive use of township services. This ordinance sets up a framework in which nuisance and uncontrolled use of police and emergency medical services will begin to be charged to property owners when 60-day threshold levels are passed.
The ordinance was a long time in development because township officials wanted to ensure that the normal and legitimate use of police and emergency medical services would not be impacted. 
Residents are always encouraged to call for those services when needed. The ordinance sets up conditions for calls that qualify against the threshold.
The ordinance was aimed largely at hotels and motels that do not use best practices to control their environments which result in the frequent need for police and EMS intervention.
When a threshold number of calls from or about a property are met in a month, and the calls meet the definition of nuisance calls, the cost of the services rendered will shift from the township to the property owner.
Abandoned Properties
A second ordinance adopted by the committee gives the township greater leverage when dealing with derelict and abandoned property. The intent is to speed the process for township intervention.
The intent being to pressure property owners to either rehab or demolish the derelict structures.
Properties can also be taken over through a receivership which eventually may lead to foreclosure.
The township currently has over 100 abandoned and dilapidated properties which pose a financial burden on the municipal budget.
To contact Vince Conti, email vconti@cmcherald.com.