Morristown’s municipal taxes will decrease for a third straight year, Mayor Tim Dougherty told the town council on Tuesday.
Granted, it’s only by a fraction of a penny, rate-wise. But when taken together with decreases in school, county and library tax rates, the annual savings will amount to $125.50 for someone with a home assessed at $350,000. The total tax bill for that hypothetical homeowner, when all these taxes are combined, will be $9,026.50, down from $9,152 last year.
The municipal chunk is $3,545.50, down from $3,556.
“It’s another good budget for the town. Morristown is moving forward. I’m very happy with the financial stability in town,” said the Mayor, who is running this year for a second term.
The preliminary $37.5 million 2013 budget, introduced by a 5-2 council vote, falls more than $1 million under the state-mandated 2 percent cap on spending increases, said town Administrator Michael Rogers. The town will carry a $1.7 million surplus into next year, he said.
A leaner, healthier work force helped the bottom line, the Administrator said. There are fewer town employees –176 now, compared with 214 in 2009–and they are healthier, with insurance claims accounting for only 66 percent of the price of their policies. The industry claims standard is between 80- and 83 percent; Morristown spiked at 105 percent a few years ago, Michael said.
Fewer large claims have meant a reduction of nearly $700,000 in the town’s health insurance bill. Employees and retirees also are contributing more toward their health coverage, the Administrator said. Pension payments decreased, too, by about $117,000.
Another key factor is an equalization of school rates that now favors Morristown over Morris Township; on a percentage basis, the town is on the hook for less, and the Township, for more, towards operation of the regional Morris School District.
“I’m pretty happy with this budget,” said Michael, who has worked on eight of them, for two mayors.
Mayor Dougherty singled out Michael and the town’s chief financial officer, Ann Cucci, for their efforts on the budget. The administration was able to hold the line for taxpayers despite:
- The loss of $20 million in tax ratables–some $14 million related to a controversial statewide formula applied to Verizon’s infrastructure taxes, and $6 million in tax appeal settlements with property owners.
- A $98,000 decrease in fines collected by the municipal court (despite an increased penalty for public urination).
- A $14,000 decrease in hotel/motel occupancy taxes.
- A $30,000 increase in consulting fees for planning services as major redevelopment projects roll out.
- A $50,000 increase for legal- and appraisal services related to tax appeals.
- Flat state aid of $2.9 million, which should be about $1.5 million higher, according to the town’s interpretation of a state formula for energy receipt taxes.
The town also chipped away at its debt service, which decreased by $2.67 million, and maintained a AA bond rating from Standard & Poor’s. At the same time, seven police officers were hired last year. Foot- and bike patrols will be added, the Mayor said.
About $18,000 was spent last year for extra weekend police patrols for Morristown’s downtown bar scene, according to Michael Rogers. He anticipates that figure will shrink this year because newly hired officers may do these patrols as regular shifts, instead of on overtime.
The town expects to recoup 75 percent of the $279,000 it spent dealing with Hurricane Sandy, from the Federal Emergency Management Agency.
Tax relief might have been higher, Michael said, but $1.9 million in grants (for the community garden property on Early Street) had to be counted both as revenues and expenditures. Likewise, conservative accounting measures mean that only a portion of $1.13 million in payments from Headquarters Plaza will be counted as revenue this year.
That’s because this is the final year of a 30-year deal with the developers of HQ; showing the full amount of the final payments this year would leave in a big hole in next year’s budget, Michael explained.
Alison Deeb, the council’s lone Republican, voted against introducing the budget, noting that she had not yet received the 150-page document. (It will be posted Wednesday on the town website, Michael Rogers said.) Councilwoman Raline Smith-Reid also voted against the introduction. A public hearing is set for May 14.
