$41M budget expected to keep tax rate stable
Jackson is dealing with projected loss of state aid
BY DAVE BENJAMIN Staff Writer

JACKSON - The Jackson municipal tax rate is expected to hold steady at 79.4 cents per $100 of assessed valuation in 2008. For an individual whose property assessment is unchanged from 2007, that means there will not be an increase in the amount of municipal taxes paid this year.

Mayor Mark Seda made the announcement about the municipal tax rate during the April 22 meeting of the Township Council.

If the tax rate remains at 79.4 cents per $100 of assessed valuation, the owner of a home assessed at $150,000 will continue to pay about $1,191 in municipal taxes in 2008. The owner of a home assessed at $300,000 will continue to pay about $2,382 in municipal taxes in 2008. The owner of a home assessed at $500,000 will continue to pay about $3,970 in municipal taxes in 2008.

Municipal taxes are one part of a property tax bill, which also includes Jackson School District taxes and Ocean County taxes.

A preliminary tentative budget presented by Seda calls for $41.5 million in spending during 2008.

"This was a difficult budget to put together, considering that municipal aid was cut substantially this year to the tune of over $400,000," the mayor said. "We initially prepared the budget holding the state [aid] numbers flat. We didn't think there would be more cuts to the aid. Once [the state] cut our municipal aid by over $400,000, I had to go back and revisit and redo the entire budget to try and hold a stable tax rate."

The mayor said some difficult choices had to be made.

"We made some substantial forecasts for the year to come," Seda said. "It looks like it will be a difficult year. It was difficult to hold it down for 2008. We obviously did everything we could to hold the [tax] rate stable.

"Our numbers were down this past year in the building department," the mayor said. "And we don't anticipate a rise in the number of building permits. So the next tough decision and hurdle will be how we deal with the deficit we are carrying with the building department. That's why I put that plan forth (to eliminate building department positions). We're still talking to them to see what plans they will submit regarding substantial cuts in that department."

The council will now begin its review of the budget that has been proposed by the mayor.

According to information provided by Business Administrator Phil Del Turco, the proposed budget for 2008 totals $41,526,973. The final budget for 2007 amounted to $39,240,893.

The amount to be raised by local property taxes in 2008 is projected to be $23,694,469. In the 2007 budget, $23,536,889 was raised in local property taxes.

At the present time, Jackson expects its state aid to be reduced by $443,454 in 2008. However, Del Turco said there is still debate going on in Trenton regarding state aid to municipalities and that amount could change if some state aid is restored.

The 2008 budget will take into account the retirement of three municipal employees: one in the tax collector's office, one in the tax assessor's office and one in the finance office. Those positions will not be filled.

The budget is expected to include full staffing, the administrator noted. However, that aspect of the budget will be further reviewed by the mayor and council members.

Also being examined is the possibility of using third-party services to replace some existing staff.

Del Turco said revenue is down due to a decrease in interest income, a decrease in the prime rate, and due to various economic conditions including a decrease in the housing market, which affects the construction department.

The 2008 budget includes $500,000 the township will pay to the state for gypsy moth spraying.

Del Turco said there have been increases in insurance, particularly health insurance, and liabilities. The cost of utilities, gasoline and pensions have all gone up.

He said municipal officials are examining the possibility of participating in inter-governmental services and there is presently a feasibility study being conducted regarding shared services agreements with the Jackson School District.

Shared services agreements are also being examined with the Jackson Township Municipal Utilities Authority and meetings have been set up with Howell and Plumsted representatives regarding shared services agreements, he said.

Del Turco said new grants are being looked into for 2008. He said capital improvements for 2008 are expected to include road improvements, the purchase of public works equipment and the completion of work being done in various Jackson parks.

As of April 26, dates had not been set for public budget workshop meetings. Those dates may be available on May 8 at the next council meeting.

The public is expected to be able to view a summary of the budget information online beginning the week of May 5.