Jackson council presents $38M budget
One year after tax rate rose 19 cents, council holds tax rate stable
BY DAVE BENJAMIN
Staff Writer

Mark Seda

Municipal taxes in Jackson will not rise in 2007. That was the message given by Mayor Mark Seda and Township Administrator William Santos at the March 13 Township Council meeting during a presentation of the $38,785,464 municipal budget for this year.

With the municipal tax rate holding steady at 79.3 cents per $100 of assessed valuation, the owner of a home assessed at $200,000 will continue to pay about $1,586 in municipal taxes in 2007. The owner of a home assessed at $300,000 will pay about $2,379 in municipal taxes and the owner of a home assessed at $500,000 will pay about $3,965 in municipal taxes.

A property owner's overall property tax bill also includes school taxes, county taxes and other assessments.

The good news about municipal taxes comes a year after the council voted 5-0 to approve a 2006 budget that raised the tax rate by 19.6 cents, from 59.7 to 79.3 cents per $100. That increase cost the owner of a home assessed at $200,000 about $390 more in municipal taxes.

The 2006 budget amounted to $37,958,537.

Although the net change from the 2006 budget to the 2007 budget is an increase of $826,927, Santos said the amount to be raised by taxation increased by $1 million, from $22.5 million in 2006 to $23.5 million in 2007.

"This was a direct result of an increase in the ratable base," he said. "So if people say we're collecting more taxes, it's not because we're raising the tax rate. It's because the ratable base increased and we're generating an additional $1.1 million."

Speaking to the council members, Seda said he was pleased to report that the budget would not cause an increase in the municipal tax rate.

The mayor said when he began working on the 2007 budget in December, he knew that the cost of running a local government would continue to rise. He said he was committed to keeping a stable tax rate while maintaining municipal services.

"In 2007 alone, pension costs have risen $480,739, or 68 percent," the mayor said, adding that costs for fuel, insurance premiums and landfill tipping fees have also been on the rise.

"Keeping a stable tax rate has not been an easy task and it required many difficult decisions," Seda said.

He said municipal departments have been reorganized, staff members have been reassigned, gypsy moth spraying has been suspended for 2007 and several positions have been eliminated through a combination of layoffs and attrition.

"In addition, I have reduced the number of take-home vehicles," Seda said. "The only individuals who have a take-home vehicle are certain police personnel and our emergency management coordinator."

According to information provided by Santos, appropriations for 2007 are up $826,927, a 2.2 percent increase over 2006.

There will be $23.5 million raised from local property taxes (up from $22.5 million in 2006); $5.1 million from surplus (up from $5 million); $4.8 million from state aid (up from $4.7 million); $1.7 million from Uniform Construction Code fees (down from $2 million); and $2.4 million from miscellaneous revenue (down from $2.5 million).

Budget appropriations include $10.2 million for public safety (up from $10 million in 2006); $330,000 for the capital improvements fund (up from $250,000); $4 million for debt service (up from $3.4 million), $6.7 million for insurance, pensions and Social Security (up from $6 million); $2.5 million for a reserve for uncollected taxes (up from $2.3 million); $6 million for public works (same as 2006); $949,772 for recreation and senior services (down $50,000 from 2006); and $4.7 million for general government (down from $5 million).

In a summary of some of the steps taken to reduce expenses, Seda noted that the council adopted a new administrative code which reorganized several departments; worked with the Jackson Board of Education on shared services; eliminated the full-time position of aide to the mayor; conducted monthly audits of medical benefit invoices; eliminated the position of economic development consultant; enacted an ordinance setting per unit COAH (affordable housing) payment at $200,000; eliminated the full-time position of confidential secretary to the administrator; and monitored overtime expenses, among others.

Seda said there are plans to look into expanding emergency medical services; billing the patient's insurance company and not the patient for emergency medical service; expanding commercial ratables; seeking grants for shared services; revising zoning application fees; continuing to study the feasibility of consolidating Jackson's fire districts; and implementing long-term capital improvements, among others.

Copies of the entire budget will be available for the public to view at the Jackson library at the Justice Complex, Jackson Drive; in the municipal clerk's office and in the administrator's office in the municipal building, West Veterans Highway; and at the senior center, Don Connor Boulevard.

Santos said the budget will be officially introduced on March 27. A public hearing on the budget is expected to be held in late April.