The Moorestown Township Council looked at several options for the 2012 budget and its members are anxious to pass an introductory version of it at an upcoming meeting.
Township Financial Manager Tom Merchel suggested a $22.7 million 2012 budget that would effectively increase the township tax bill for an average assessed home of $529,800 in Moorestown by $95.
Merchel was able to reduce the proposed tax-rate increase from the last budget meeting by more than $40, as health insurance costs were decreased by $100,591. Appropriations in the 2012 budget are down by almost $350,000, he said.
The total tax levy in this proposed budget is $16.1 million, an increase of $682,469 from the 2011 levy.
A second scenario — one that Merchel said he does not support — would see the township tax rate remain the same if the township uses $800,000 from its utility trust fund surplus to cover the loss of ratables and revenue in the township.
The utility fund is used for capital improvements for township water and sewer infrastructure, Mayor John Button said.
It’s a gimmicky solution to reducing the tax rate, Councilman Michael Testa said, and one that would just result in township councils of the future trying to make up the $800,000 used for this year’s budget.
Councilwoman Stacey Jordan agreed to an extent, but didn’t completely throw out the idea of using some of the utility fund to manage the proposed tax increase in this year’s budget.
What about using half of the fund, she asked, to reduce the rate?
“Why don’t we go down the middle? We can take $425,000 from the fund and give it back to township taxpayers,” she said.
The council asked Merchel to look at other cost-saving options and at another budget scenario using half of the utility fund.
Button said the council will host another public budget meeting prior to its next commission meeting and will try to come to a consensus on a scenario to be able to pass an introductory 2012 budget.
Looking ahead at budgets for 2013 and 2014, Merchel noted a proposed reassessment for township properties should stop the bleeding for tax appeals in Moorestown.
Also, Merchel said he is counting on next year’s budget, including $4 million in new revenue from the sale of four liquor licenses in the township.
While the tax rate would likely increase in 2013 as well, Merchel said, it could remain flat in 2014 with the debt service dropping by almost $700,000.
