Howell council adopts $44.8 million budget
BY TOYNETT HALL and MARK ROSMAN
Staff Writers

HOWELL - The Township Council has adopted a $44.8 million municipal budget for 2007. The spending plan was adopted by the governing body on June 26.

The municipal budget in 2006 amounted to $40.5 million.

According to information provided by municipal officials, revenues to support the 2007 budget will come from the following sources: surplus, $7 million; miscellaneous revenue, $18 million; receipts from delinquent taxes, $1.6 million; current property taxes, $18.2 million.

According to a summary of appro-priations, the money will be spent in the following manner: operating expenses (salaries and wages), $20.3 million; operating expenses (other expenses), $13.7 million; deferred charges and other appropriations, $701,000; capital improvements, $1.3 million; debt service, $3.4 million; reserve for uncollected taxes, $5.3 million.

According to Township Manager Thomas Czerniecki, there are four factors that have contributed to the $4.3 million increase in the 2007 budget, compared to 2006.

One factor is "the budget reflects a one-time $1 million bankruptcy settlement that is incorporated into the capital surplus line item. A second factor is that "the reserve for uncollected taxes has increased by $781,114, which is established to account for the difference in the actual tax collection rate, 96 percent in 2006, and 100 percent."

Third, the budget includes a $665,062 increase in pension costs, and fourth, the final component of the increase reflects increases in the same costs most businesses and households face such as contractual salary increases, utilities, fuel, insurance, etc., according to Czerniecki.

The township will see a 132 percent increase in the amount of money collected through the local open space tax. That tax rate is 2 cents per $100 of assessed valuation. Last year the amount collected for the open space fund was $588,815. This year, because all property in Howell has been revalued and the open space tax rate has not dropped, the open space fund will raise revenues of $1,370,495, according to information provided by township officials.

The open space fund is used by Howell officials to help purchase and preserve open space tracts of land in the community.

Because of the revaluation, the municipal tax rate will drop from 53.8 cents to 26.5 cents per $100 of assessed valuation. However, the drop in the tax rate does not necessarily mean residents will be paying less in property taxes. Some residents will pay more in property taxes and some residents will pay less in property taxes as a result of the revaluation.

In 2006, the owner of a home that was assessed at the township average of $150,000 paid about $807 in municipal taxes (.538 x 1,500).

The average house assessment in Howell is now $350,000. With a tax rate of 26.5 cents per $100 in place, the municipal tax bill on that house will be about $927 (.265 x 3,500), or an increase of $120 for a person whose home assessment went from $150,000 to $350,000.

The owner of a home assessed at $400,000 will pay about $1,060 in municipal taxes in 2007. The owner of a home assessed at $500,000 will pay about $1,325 in municipal taxes in 2007. The owner of a home assessed at $600,000 will pay about $1,590 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.

Czerniecki said that "in preparing the budget, the Township Council took a close look at where it stood relative to other communities in the use of local purpose taxes to support the municipal budget. Based on the latest data available through the New Jersey Department of Community Affairs, Division of Local Govern-ment Services, Howell is very com-petitive.

"Howell is the 32nd most populated municipality in New Jersey out of 566. Of the most populated municipalities, Howell's local purpose taxes are among the lowest on a per capita basis at $310.45 per resident. Statewide, 459 municipalities have higher per-resident local purpose taxes to support municipal operations. This analysis looks only at the municipal functions controlled by the Township Council. It does not reflect the full tax bill, which also includes county, educational and other taxing entities," Czerniecki said.

According to information in the budget, the total tax rate in Howell will drop from $4.25 to $1.96 per $100 of assessed valuation this year. The total tax rate includes municipal appropriations, the reserve for uncollected taxes, elementary school, high school, county, library, health, county open space, fire district and township open space tax rates.

Using those figures and the average house in Howell, the owner of a home that was assessed at $150,000 in 2006 paid a total of about $6,375 in property taxes (4.25 x 1,500). If that person's home is now assessed at $350,000, the total property tax bill for 2007 will be about $6,860 (1.96 x 3,500).