Howell budget checks in at $45 million
Municipal tax rate drops, but that may not mean lower property taxes
BY TOYNETT HALL and MARK ROSMAN
Staff Writers

The Howell Township Council was ex-pected to introduce a $45 million municipal budget for 2007 at a special meeting on May 29.

According to information provided by municipal officials, a total of $18.4 million is expected to be raised in property taxes to support the budget. The remainder of the budget will be funded by other revenues.

The 2007 spending plan is about $4.5 million higher than the 2006 budget. In 2006, officials anticipated collecting $15.6 million in property taxes, but realized a collection of $18.8 million in property taxes, according to the information provided.

The 2007 budget is scheduled for a public hearing and possible vote for adoption at the council's June 26 meeting.

Howell has undergone a revaluation of all property in the past year, and that will cause the municipal tax rate to drop from 53.2 cents to 26.6 cents per $100 of assessed valuation. However, the drop in the tax rate does not mean residents will be paying less in property taxes.

In 2006, the owner of a home that was assessed at the township average of $150,000 paid about $798 in municipal taxes (.532 x 1,500). The average house assessment in Howell is now $350,000.

With a tax rate of 26.6 cents per $100 in place, the municipal tax bill on that house will be about $931 (.266 x 3,500), or an increase of $133 for a person whose home assessment went from $150,000 to $350,000.

The increase for the "average" homeowner comes to about $11 a month.

The owner of a home assessed at $400,000 will pay about $1,064 in municipal taxes in 2007. The owner of a home assessed at $500,000 will pay about $1,330 in municipal taxes in 2007. The owner of a home assessed at $600,000 will pay about $1,596 in municipal taxes in 2007.

The municipal tax is one portion of a homeowner's overall property tax bill. The tax bill also includes K-8 school district taxes, Freehold Regional High School District taxes, Monmouth County taxes and several other assessments.

Pauline Smith, of Vanderveer Road, has lived in a four-room house with one bathroom since 1963. She said her home was reassessed to a value of $330,000. Smith said it is becoming more and more expensive to live in Howell, but said she will never move.

She believes the rising property taxes are unnecessary.

"It stinks - the township is wasting money spending millions of dollars on recreational facilities. They are being very generous in some areas where they should be cutting, and cutting other places where they shouldn't. It is not fair for us [taxpayers] to give up taking care of ourselves to pay for those luxuries. There are so many other ways the town can spend less money," Smith said.

Sandra Solly has lived in Howell for 34 years and said her taxes go up every year by at least $100. She said she wants officials to not be wasteful and to become more efficient.

Deputy Mayor Robert Walsh said, "I do understand the taxpayers' frustration, but right now we're handcuffed. There are only certain things we have control over."

Walsh said some of the budget will go toward contractual increases that have already been agreed to.

Like other New Jersey municipalities, Howell will be paying more this year to fund the pension accounts of its public employees. According to information contained in the budget, the public employees pension line item payment will increase from $142,215 in 2006 to $283,196 in 2007 (a 95 percent increase), while the police pension line item payment will increase from $739,521 in 2006 to $1,259,951 in 2007 (a 70.37 percent increase).

Under capital improvements, the department requests totaled $53.9 million and the council is funding $7.2 million in capital improvements. Capital projects include repairs to streets, curbs and sidewalks; recreation improvements, including work on Bonim Park, Lakewood-Allenwood Road; replacement vehicles; and public works equipment, according to information provided by Chief Financial Officer Jeffrey Filiatreault.

Two large capital improvements that were requested for 2007 but are not being funded in the budget are a recreation center at $22.5 million and a new town hall at $20 million. No money has been placed in the 2007 budget for either of those projects which have been discussed by municipal officials for the past several years.