Plumsted introduces $3.7M local budget

PLUMSTED - During its April 4 meeting, the Township Committee approved the introduction of the 2007 municipal budget that has been reduced by $104,841 from last year's $3.8 million final 2006 budget.

According to Mayor Ron Dancer, the tax rate for the 2007 budget of $3.7 million will be reduced from 12 cents to 9 cents per $100 of assessed valuation, which is the lowest municipal government tax rate in the history of the township.

In 1987, Plumsted instituted its first municipal government local purpose tax of 9.3 cents per $100, according to the mayor.

This year's budget being reduced by $105,000 (estimated) is ostensibly a result of cutting operating expenses by $50,000 (estimate) and capital expenditures by $175,000 (estimate). With salary increases totaling $128,000, the net reduction for spending in the 2007 budget is $105,000.

This year, as a result of the state/county ordered revaluation program to implement a uniform system of valuation for all township properties to provide an equitable distribution of the total tax burden as required by the state law, the total value of township properties increased to $1.09 billion, Dancer said.

Although the Township Committee's budget and tax rate are lower, some property owners will pay higher taxes, while others will pay lower taxes as a result of the revaluation.

In 2007, with higher property ratable base values and a lower budget, the township's lowest municipal government tax rate of 9 cents was established. The breakdown and use of the 9-cent tax rate is as follows.

Since 3 to 5 percent of property owners do not pay their taxes on time, 6 cents ($623,972) are solely dedicated to the reserve for uncollected taxes and can only be used to guarantee 100 percent payment of taxes due to the school district, Ocean County and the fire district, Dancer said.

The remaining 3 cents ($361,429) are dedicated as the only amount the Town-ship Committee may use in taxes to support budgeted operating expenses of the municipal government's $3.7 million budget. Although the 9-cent tax rate will yield more in tax revenues ($480,294), the committee strives to continue a policy of low tax rate stability and predictability into the future, especially in light of less available surplus ($427,972), according to the mayor.

With the increase in property values as a result of the revaluation, last year's total property tax rate of $3.21 per $100 of assessed valuation may be decreased to an estimated $1.38 per $100, depending upon the April 17 results of residents voting on the proposed school budget tax amounts.

Dancer said that due to the complexity of determining individual total tax bill amounts, especially in a revaluation year, the following formula is provided for residents.

Homewners should multiply their new 2007 property assessment value by .0138 and the result will be an unofficial estimated total property tax bill, which factors in the school district's base budget question No. 1 only.

For example, a residential property assessed at the Plumsted average of $386,000 would have a total tax bill of $5,327 (386,000 x .0138 = 5,327).

Because of the revaluation, some property tax bills will increase, while other tax bills will decrease. For example, the following calculations are based upon actual tax records of two residents in Plumsted.

The first resident will pay $154 less in total taxes (2006 value: $256,900 x .0321 = $8,246, compared to the 2007 value, $586,400 x .0138 = $8,092). The second resident will pay $673 more in total taxes (2006 value: $163,900 x .0321 = $5,261, compared to the 2007 value, $430,000 x .0138 = $5,934).