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Barnegat not raising taxes despite economic struggle
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BARNEGAT TOWNSHIP - In the past several days, township officials have taken this year's budget presentation on the road, stopping at several senior citizen communities to detail the town's fiscal plans and allay economic anxiety.
Like many governments this year, Barnegat introduced a budget with no tax increase to help residents who are struggling because of the recession. Officials plan to adopt the budget at the July 6 Township Committee meeting.
But the township has struggled with rising costs and declining revenues.
Last year, taxes increased 7.6 cents per $100 of assessed value, and this year the township had to defer its state pension contribution or face a tax increase of about 1.5 cents. That was despite a 10 percent reduction in the work force, and partially because of a 13 percent cut in state aid, since 2007.
Revenues are likely to further decrease if most of the 1,444 tax appeals filed so far are honored, which Township Administrator David Breeden expects because home values have plunged since the 2005 revaluation.
"That's going to have an adverse impact on Barnegat," he said Tuesday after finishing a presentation at the Four Seasons at Mirage adult community. "There's no doubt about it."
On Tuesday night, Breeden, Mayor Jeff Melchiondo and Deputy Mayor Al Cirulli visited the Heritage Point senior community to present this and other information about the township's financial standing.
The 25-member audience had several questions about the tax appeals, commercial development and the potential for further refining the budget. Most seemed satisfied afterward with the answers.
"I really have to commend them," said Joseph Bonin, a retired chief financial officer from Maplewood Township, Essex County. Bonin said he considers himself independent-minded and not afraid to criticize, but he thought the administration appeared to be "right on the money" with its finances.
Breeden said audiences at these presentations have ranged from 15 to 100 people, and their questions have focused on the future of the township, where many have decided to spend the rest of their lives.
"We need to make some decisions in the next two years that will have a lasting impact on Barnegat for the next 15 to 20 years," he said.
That includes whether the township will upgrade or relocate its small municipal hall and Police Department, what changes will come from more single-family homes being built and what types of commercial development will come with the new full Garden State Parkway interchange and zoning changes to the downtown area.
Breeden started his presentations with some assumptions about what might happen: The economy would stabilize this year and improve next year and residential growth would decrease to 150 homes per year while commercial development increased. At the same time, he expects state aid to decrease, the tax collection rate to continue decreasing as it has for the past few years and both commercial and residential tax appeals to lower the tax base.
On Tuesday, he said he hopes those competing forces will cancel each other out and prevent the need for more of the hard choices he said he never imagined he would have to make.
"These are difficult and challenging times on the local government level," he said.
On Thursday, officials will offer a similar presentation and question-and-answer session with the public at 1 p.m. in the township hall courtroom - the fifth and final presentation before the public hearing next Tuesday.
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Posted in Ocean on Wednesday, July 1, 2009 10:40 pm
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