Municipal Tax Increase Debate Set For Tuesday

The first municipal services tax increase proposed in five years will be presented in a public hearing this Tuesday, June 29 at the Township Committee meeting.

The municipal budget, introduced on May 24, calls for a $585,006 increase over last year's total. Township officials are quick to point out that the total ($16,592,076) is still less than in 2005 (($16,722,978) because of tax relief over the past several years.

Bernards lost a significant amount of state this year (receiving a 21.5 percent decrease in energy tax receipts, the main state aid income for the township), and adjusted the budget to compensate for the lost revenue.

Other factors involved in the increased tax burden, according to the Township Committee's budget presentation in a previous meeting, were rising public safety costs ($5.65 million in 2010, a $320,000 increase from 2009), pensions cost increases (up 18.86 percent) and decreasing return on investments due to the poor economic climate (down 14.6 percent).

Despite the proposed increase, Bernards officials were positive in their presentation of the township's financial position.

"Our record is unparalleled among the other 566 municipalities in the state," Township Administrator and Chief Financial Officer Bruce McArthur said. With the exception of Harding Township, Bernards has the lowest equalized municipal services tax rate in Somerset, Morris, Mercer, Middlesex and Union counties, according the McArthur. "When you combine that with the services we provide… I think our record is something to be proud of."

Regardless of the budget figure passed, the municipal services tax is just one component on the overall property taxes residents pay, which also include the district school tax, county tax, and open space taxes (both municipal and county level). The municipal service taxes are predicted to factor in at about 15 percent of the total tax levy.

The Township Committee budget and tax levy hearing will be held at 8 p.m. in Town Hall on 1 Collyer Lane.

For a more detailed analysis on the budget, see previous coverage on Basking Ridge Patch.