Tax Increase Coming As Moorestown Council Approves $27M Budget

MOORESTOWN, NJ — The average Moorestown homeowner will see an annual increase of $36.63 in the upcoming year after Township Council approved the proposed $27,950,000 budget Monday night.

The budget that was unanimously approved carries with it a 1.93 percent tax rate increase, which is down from the 3.65 percent increase that was included in the draft budget first discussed in May. Read more here: Moorestown's Draft Budget Includes Tax Increase

In July, Township Council introduced an amended budget that was able to see a reduction in the proposed increase thanks to $2,147,380.07 that was awarded to the township from the federal government as part of the American Rescue Plan funding resulting from the coronavirus pandemic. Read more here: Moorestown Cuts Tax Increase In Proposed Budget

The budget and the resolution certifying that the budget complies with all statutory requirements were both approved after a public hearing that included no additional comment from the public.

The budget process is typically over before the summer begins, but the township extended the process, so it could include any money it would receive as part of the American Rescue Plan, Moorestown Chief Financial Officer Tom Merchel said previously.

Moorestown will receive the money in two installments of $1,073,690, which will be received this year and next year, Merchel said.

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.

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 was sworn in as township manager during Monday night's meeting. 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

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.

Township Council previously gave final approval to a proposal that permits the township 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. Read more here: Moorestown Council Approves Annual Budget Cap Proposal