No Municipal Tax Increase In Initial Budget For Chatham Township

CHATHAM, NJ — As work on the municipal budget for 2023-24 continues in Chatham Township, the township administrator anticipates no tax increases in the coming year.

The Chatham Township Committee met on Tuesday, April 25, for a regular committee meeting, where they heard the latest update on the municipal budget.

Ziad Shehady, the Township Administrator for Chatham Township, provided the update and set up the timeline for the official budget introduction.

Members of the public will be able to hear a more detailed discussion of the overall budget on May 9 during an additional presentation and public review, with the final public hearing and adoption scheduled for May 23.

The Chatham Township Finance Committee was a combination of bipartisan efforts this year, Shehady said. Mayor Ashley Felice and Committeewoman Stacey Ewald both served on the committee alongside Chief Financial Officer Debra King.

According to Shehady, the finance committee was successful in maintaining the municipal tax rate and even lowering the overall tax rate due to a decrease in the township's open space tax rate.

"The budget also calls for a lower open space tax rate of 1.5 percent instead of the 2 percent, residents are going to see an overall combined lower tax rate as compared to last year," Shehady said.

Property taxes in New Jersey are made up of three parts: school, municipal and county. In the township, that breaks down as 65.7 percent of taxes go toward the school district, 16.5 percent go toward the municipality and 15.2 percent go toward the county. The remainder goes toward open space and the library.

This year, the township anticipates raising $10,854,546 from municipal taxes.

"Our township has always been committed to providing exceptional services to our residents while being fiscally responsible. With no additional tax rate increase, we are able to ensure that our residents are not burdened with an added financial strain," Felice said. "Additionally, we have managed to reduce our open space tax while still preserving the beauty and natural resources of our community."

The biggest expense changes that were seen in the township this year includes an increase in insurance, which went up by 19.75 percent.

The state surprised all New Jersey municipalities, including Chatham Township, earlier this fall with a 20 percent increase in healthcare insurance rates, prompting local governments to pass resolutions opposing the increase in an effort to fight back.

Under the new healthcare proposals, hundreds of thousands of New Jersey public employees, early retirees, and school employees face rate increases of up to 20 percent for health benefits.

Another increase that was accounted for is a 4 percent increase in the sewer utility compared to last year.

"That is due to a really thorough analysis of our real costs attributed to the sewer utility, things like insurance, pensions and benefits that in previous years were allocated to the operating budget. Also, there is a rising cost of chemicals, materials and supplies," Shehady said.

Shehady also stated that the township's surplus increased this year, which is an improvement over previous years.

"I am particularly pleased to report that our fund balance has improved, which provides us with the flexibility to respond to unexpected challenges and maintain a healthy financial outlook for the future," Felice said. "Our continued investment in capital improvements, such as road repairs, infrastructure upgrades and public safety initiatives, ensures that our community remains a safe place to live, work and raise a family."

This spending plan is only an introduction to the official budget plan. The second presentation and public review will be held on May 9, with a public hearing and final vote scheduled for May 23.