Budget gets final OK in Howell

HOWELL - The Township Council has given final approval to a $44.8 million municipal budget for 2007.

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 appropri-ations, 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.

Because of a property revaluation that was conducted in Howell last year, 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 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.

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).