COURT HOUSE – Middle Township Committee introduced its 2019 budget March 18, proposing no increase in the local purpose tax rate of $.483. Local purpose tax revenue represents 60 percent of the total revenue anticipated in the budget.
The $22.2-million general purpose budget contains an overall 4.7 percent increase in salaries and wages with a 4.6 percent decrease in other expenses. Mayor Timothy Donohue cited savings in health care contracts and Committee member Michael Clark pointed to a $15-million increase in the township’s ratables as factors that offset some increases in spending. The budget document lists the township’s new assessed value at $2.76 billion.
The budget makes use of $1.8 million in surplus funds, an amount basically the same as in 2018.
The dedicated sewer utility budget stands at $5.4 million with $3.2 million allocated for payment to the Cape May County Municipal Utility Authority (MUA). The appropriation for payment to the MUA is $400,000 higher than in 2018. Donohue has repeatedly said that the township would continue to seek ways to reduce the recent spikes in MUA fees through both ongoing analysis of flow statistics and infrastructure improvements to reduce potential stormwater intrusion in the sewer flow.
Last year’s unexpected increase in MUA fees forced the township to reduce the amount of indirect fee revenue the general purpose budget received from the dedicated utility budget. Those indirect expenses were a way for the township to recover labor costs by township staff performing functions on behalf of the utility. That reduction in the 2018 budget prevented a deficit in the utility budget and it was carried over into the 2019 budget.
The 2019 capital budget anticipates $4 million in capital spending with the largest items being $1.2 million in road and drainage improvements and $2 million in sewer system improvements.
Both Donohue and Clarke said they were pleased that the introduced budget contains no tax increase. Committee member Theron “Ike” Gandy was not present for the work session, but campaigned last fall on a platform of no tax increase for 2019.
Donohue said that a detailed presentation of the budget would be presented to the public April 15, in advance of a public hearing and a scheduled vote to adopt. A copy of the introduced budget is available at https://bit.ly/2HO6e3u
To contact Vince Conti, email vconti@cmcherald.com.
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