Increasing Costs Add Pressure To 2023-24 Budget For Morris Township

MORRIS TOWNSHIP, NJ — Morris Township homeowners would face an increase of nearly 2 percent to the municipal portion of their property taxes under an early draft of the town budget, officials say.

The Morris Township Committee voted to introduce the 2023 proposed budget during their meeting last month.

If it passes as written, the budget would mean a tax increase for all homeowners.

According to a presentation from municipal officials, the town is facing an increase of more than 20 percent in employee health insurance premiums, an 11 percent increase in recycling and trash disposal costs and a 13.5 percent increase in pension costs.

The state surprised all New Jersey municipalities, including Morris 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 could face rate increases of up to 20 percent for health benefits.

Another factor that had to be factored into the budget was a nearly 14 percent increase in pension costs.

The increased spending is required by state law to cover the pension benefits earned by employees who are members of the Public Employees' Retirement System and the Police and Firemen's Retirement System.

"The Finance Committee and our professionals have worked hard to provide the benefits our employees deserve, protect the services our residents depend on, and continue investing in our community’s future in this budget; all while shouldering the burden of dramatic increases in non-discretionary spending," Mayor Mark Gyorfy said.

The $40 million budget will fund a variety of projects, including:

• Road resurfacing: increased from $750,000 to $800,000 to catch up on delayed work due to significant increases in the cost of asphalt last year.
• Road reconstruction projects: Overlook Road, Woodland Avenue and Whitehead Road
• Collinsville Playground and Tucker Field Reconstruction
• Trash Compactor Truck Replacement
• Roof replacement for Woodland Firehouse
• Kiwanis Field Renovation
• Street tree replacements for neighborhoods impacted by ash tree removals

Salaries, wages, and operating expenses consume a sizable portion of the budget, accounting for nearly 52 percent of the total. Statutory expenses, such as health insurance, pensions and benefits, account for 21 percent of total expenses. The fund balance, which protects the township in the event of emergencies or unforeseen expenses and allows for more stable tax rates, is 16 percent.

This spending plan is only a preliminary budget. A public hearing and final vote have been scheduled for April 19.