Holmdel Holds Line On Spending With Slight Tax Rate Decrease

HOLMDEL, NJ — The Township Committee has voted unanimously to introduce the township's 2023 municipal budget, a budget that calls for a slight decrease in the tax rate, however on a higher ratable base.

The total proposed total budget is $30,340,967.84, less anticipated non-tax revenues of $15,508,691.36, township officials said.

That leaves the amount to be raised by taxation of $14,832,276.48 for 2023 for municipal purposes, compared with $14,832,640.50 for 2022.

Mayor DJ Luccarelli said the township officials and the committee worked to not increase spending in areas the committee could control, while including some needed additions.

He said the Police Department has been budgeted to add two officers and to better equip the department. He said the township will also increase its share of funding for school protection costs.

The proposed tax rate for 2023 is 26.6¢ per $100 of assessed valuation, compared with 30.7¢ per hundred in 2022, Chief Financial Officer William Antonides said.

The decrease is due to the increase in total assessed value in the township from approximately $4.837 billion to $5.564 billion, he said.

The average assessed value of a residential property in Holmdel for 2023 is $905,459 with an annual municipal tax bill of $2,417.58. In 2022, the average value was $779,141 in 2022 with an annual municipal tax bill of $2,384.17.

Although the amount to be raised by taxes is slightly less in 2023 than it was in 2022, the average home will increase $33.41 per year for municipal taxes, Antonides said. This is due to that shift in the ratable base, he explained.

The sewer budget is $3,612,000 and swim pool budget is $661,500, with both utilities paid for from user fees.

The budget is scheduled to be adopted June 13.

A link to the 2023 budget can be found here.

Township Administrator Jay Delaney provided an explanation of certain budget elements to the Township Committee on Tuesday.

He said the budget includes appropriations for township services such as police, recreation, public works and other services. It does does not include school, county or library taxes.

It has many non-discretionary items, such as salaries, pensions and health benefits, as well as lights and snow removal.

He said less than 5 percent of budget is made up of discretionary spending.

Looking ahead to next year, Delaney said it is expected that state aid will be reduced next year as funding under the American Rescue Plan, part of the federal COVID funding relief, will run out as recurring revenue.

In terms of appropriations, Delaney said there are "a number of challenges," such as a state health benefits plan increase of 24 percent. Pension contributions also have increased.

Accumulated absences and accumulated sick leave are capped by statutory limits but the township has now created a fund to cover future expenses in this area.

He said although appropriations increased by about $1.7 million, that was offset by non-tax revenue this year.

Capital expenses of $2.9 million will be applied to various expenses such as a road, drainage and sign repairs, vehicle repairs and other expenses for capital needs in various departments. Lucarelli noted that the capital budget was well below the ceiling of $3.5 million.

The township also is increasing its amount of debt service to pay down long-term debt. Interest rates were very low but have increased, Delaney noted. He said the budget reduces township debt by $4.1 million, accelerating the paydown of township debt.

To see the Township Committee discussion of the budget, visit the township Facebook site.