Moorestown Cuts Tax Increase In Proposed Budget

MOORESTOWN, NJ — While the proposed budget Moorestown Council introduced Monday night includes a tax increase, the proposed increase is smaller than the one first mentioned in May.

Township Council introduced its proposed $27,950,000 budget with a 1.93 percent increase Monday night. The average Moorestown homeowner would see a tax increase of $36.63.

This is down from a proposed increase of 3.65 percent ($68.69) that was included in the draft budget first discussed in May. Read more here: Moorestown’s Draft Budget Includes Tax Increase

The decrease is possible after the township was awarded $2,147,380.07 from the federal government as part of the American Rescue Plan funding resulting from the coronavirus pandemic, according to Township Manager Tom Merchel.

Moorestown will receive the money in two installments of $1,073,690, which will be received this year and next year, Merchel said. While the budget process is typically over by the middle of the summer, Moorestown waited to approve its budget, so it could include this year’s installment.

The township will use $640,000 of this money to account for lost revenue it saw in 2020. The township also reached a settlement with a majority of the workers’ unions, which helped lower the proposed tax increase, Merchel said.

Merchel said the township will use $2.9 million in surplus money, instead of the $3.2 million originally proposed.

Along with the proposed budget, council introduced a resolution establishing a tax levy of 1 cent per $100 of assessed property for the Moorestown Open Space, Recreation and Farmland, and Historic Preservation Trust Fund Program.

Council also introduced the accompanying ordinance that permits it to exceed the municipal budget appropriation limits and establish a cap bank.

By approving the proposal, Township Council would allow the township to increase its budget by 3.5 percent over last year's final appropriations and bank the excess as an appropriation. The increase amounts to $621,163.10 over last year’s final appropriations.

Finally, Township Council introduced a resolution certifying that it complies with the federal Equal Employment Opportunity Commission's enforcement guidance considering arrests and convictions under the Civil Rights Act of 1964.

All budget resolutions were unanimously approved on introduction, with the public hearing and final votes set for Aug. 9.

The township projects an increase of $83,893 in salaries and wages for township employees. This includes a separate salary for township manager and chief financial officer, as Merchel resigned from the management position to focus on his financial duties. Kevin Aberant is taking over as manager. Read more here: Kevin Aberant Appointed Moorestown Township Manager

There will also be a new clerical support position for administration to handle website and social media management, and a new part-time support position to handle desktop and peripheral equipment management. Read more here: Moorestown Tackling Staff Shortages In This Year’s Budget

“The salary line also increased for the full impact of the assessor position made full-time midway through last year, as well reinstating several positions that were temporarily reduced due to the impact of Covid last year,” according to a copy of the proposed budget posted on the township’s website. “Significant offsets to the normal salary increase were realized through the replacement of retired personnel at the higher pay steps with newly hired personnel at lower pay rates.”

There will also be a $1,355,048 increase for other expenses; a $159,3450 increase for statutory expenses; a $50,000 increase for capital projects; and a $269,195 increase for debt service.

The Township continues to pay for appeals filed by Macy's and Lord and Taylor. That will be completely paid off in 2023, and will disappear from the budget beginning in 2024. The township will appropriate $850,000 in the next two budgets, and $325,000 in the 2023 budget.

A $419,616 decrease for debt service is expected.

The Water and Sewer Utility Budget is $10,280,000. The bill for a residential user of 18,000 gallons/quarter will be $209, with the water bill being $76 and the sewer bill being $133.

Salaries and wages would go up $69,700, and debt service would increase $376,000. There would be a decrease in other expenses of $713,462.