Proposed Morristown budget would raise homeowner taxes by about 2 cents per $100

Morristown property taxes will rise by 1.9 cents per $100 of assessed value–that’s an extra $19 for every $100,000– if the town council adopts the $37.2 million municipal budget proposed tonight by Mayor Tim Dougherty.

Someone with a home assessed at $357,000, the town average, would pay about $68 more than last year for local government. That same homeowner also is facing a $100 total hike in the schools portion of her taxes. Morris County taxes are not rising. When all these taxes are combined, this average taxpayer’s bill comes to $9,193.

The Mayor said his budget was the result of “grueling…day and night” work and occasional “screaming matches.”  In a poke at his predecessor, former Mayor Donald Cresitello, Mayor Dougherty told the council he would end “grandiose schemes” and use technology to do more with fewer employees.

With the increases, the municipal tax rate works out to $1.035 per $100 of assessed value, while schools come to $1.227.

When the Mayor took office in January, his staff estimated that the town faced a budget gap of $4 million. Through layoffs, non-replacement of retirees, increased employee contributions to health benefits, union concessions, and other measures, the shortfall was narrowed to $750,000, according to the administration.

The amount that needed to be raised via taxes was further trimmed by recalculating the town’s tax base to include three new housing developments that have recently opened their doors: The Highlands, 40 Park and The Metropolitan. Together, they add $32 million to the tax base, now at $2.257 billion, upon which taxes are calculated.

All three of those establishments are appealing their tax valuations; town officials say they are confident about the outcome , which, in any case, is not expected to affect taxpayers this year.

Nine full-time employees and three part-timers have been laid off, shaving $494,000 in salaries and benefits from this year’s budget, according to the administration.

Three firefighters, two police officers and two public works employees who were scheduled for layoffs probably will be spared, as a result of union contracts that will pay zero salary increases for this year. The Mayor thanked the unions for their cooperation.

Another 14 vacant jobs were not filled, saving another $1.14 million in salaries and benefits.

And municipal departments cut their operating costs by 8.5 percent.

The council unanimously voted to introduce the budget tonight, and scheduled  a public hearing for June 22. Four of seven council votes are required to enact a budget.

The Mayor’s  $37.2 million spending plan represents a 1.3 percent increase. The amount to be raised by taxes is up 1.9 percent, after the new housing projects are factored into the equation.

Expenses that contributed to the budget gap included an increase of $1.7 million in pensions, an $800,000 increase in health insurance, a loss of $737,000 in state aid, and $575,000 set aside to cover any lost tax appeals. More than 300 commercial and residential taxpayers have appealed their tax bills this year.