Howell Municipal Tax Increase Reflects Budget 'Challenges'

HOWELL, NJ — The municipal budget, presented to the Township Council at its regular meeting, calls for an estimated $150 per year increase on a property assessed at the average township value, municipal officials said.

The proposed municipal tax rate for 2023 of $0.336 is equal to 33.6 cents of tax on every $100 of assessed property value, or an estimated $150 per year increase on a property assessed at average value, township professionals said at the meeting.

Both Chief Financial Officer Louis Palazzo and Township Manager Joseph A. Clark presented the budget to the council and public on April 4. They said that, depending on an individual's home value, the amount of the increase can be more or less than $150.

The average household assessment in Howell rose from $416,890 in 2022 to $488,979 in 2023, which is about a 16% increase in value.

"Nobody likes a budget with a tax increase. But we have minimized the amount of the increase. The budget is reasonable and prudent in light of all the attendant circumstances such as the upward inflationary spiral, the unanticipated increase in state health benefits, increased pension costs, and increased liability insurance premiums among other items," according to the presentation.

The public hearing and proposed adoption of the budget is May 9 at 7 p.m., at a Township Council meeting.

The budget figures an be viewed at the township website here, and it is filled with specifics on budgets for various departments as well as plans for the future for projects the township wants to tackle to enhance services.

The total amount to be raised by taxation is $33,165,788, up $2,885,788 from the 2022 amount of $30,280,000.

The 2023 total budget appropriations are $59,148,000, up $3,586,000 or 6.45 percent from 2022.

The township is using $5 million from $11,801,389.37 in surplus to offset additional expenditures, according to the presentation, as well other sources of revenue, leaving the remaining amount to be raised by taxation.

The presentation noted that the municipal expenses are just one portion of a homeowner's total tax bill. The others are taxes by the Howell school district (45.86 percent), the Freehold Regional High School district (19.02 percent), Monmouth County (12.43 percent), the fire districts (4.90 percent) and open space (.94 percent) that comprise the total tax bill a homeowner receives. the municipal purposes portion of the tax bill is 16.85 percent, according to the presentation.

The estimated municipal portion of an average tax bill would be $1,643.95, up from $1,492.47 last year, according to the presentation.

The total estimated tax bill on a home at average assessed valuation, calculating all these elements, would be $9,267.14, up from $8,854.76 in 2022, according to the presentation - or a total yearly increase of about $412. Area school budgets have yet to be finalized. The figures are just estimates for the purposes of the township, Clark said.

Clark noted that the municipal budget can be amended between now and the adoption if there are ideas to save even more in expenditures. But he pointed out to the council that planning the budget is a year's long process with lots of "horse trading" among departments to keep costs as low as possible while improving services.

The municipal portion of the budget saw some major challenges, the council was told.

For example:

• Inflation is at high levels (7 percent in 2021, 6.5 percent in 2022, and 6.4 percent in 2023).
• State health benefits costs increased by $700,000 ($240,000 of the increase is being paid by employees, leaving a budgetary impact of $460,000.
• The township and the school district have added Special Law Enforcement officers in the schools for a cost of $384,500 for the municipal portion.
• Statutory increases for pensions are $600,552.

The budget calls for new hiring for limited positions only, including:

• Three police patrolmen.
• One code enforcement inspector and one administrative assistant for the housing unit.
• Two emergency medical technicians, for a full-time overnight shift.

Some of these costs will be offset, according to budget. For example, the Housing Unit should bring in additional revenue as the township continues to enforce regulations, for one thing.

Regarding the EMT hires, the officials said the Farmingdale First Aid Squad provides coverage in the northern part of Howell. The township worked with the squad to bring back one of Howell’s ambulances. By saving the cost of a new ambulance, the township was able to justify the expenditure, providing consistent coverage for Howell, according to the presentation.

Ratables in Howell for 2023 (before county certification) total $9,863,498,800, compared with $8,450,898,900 in 2022, an increase of $ 1,412,599,900, or 16.72 percent.

You can see the full presentation on the video of the Township Committee meeting.