Politics & Government

Aberdeen's Adopted 2013 Budget Includes 3.67% Increase to Tax Rate

The budget introduced in March initially called for a 6.3 percent increase in the tax rate.

The average Aberdeen homeowner will see their annual 2013 municipal taxes increase about $50 under the budget adopted by the council on June 5. 

The approved budget calls for a $338,333 increase in the tax levy, or 3.35%, to a total of $10,427,257 to be raised in taxes, according to a press release issued by the township. The original budget introduced in March initially called for an approximately $601,389.83 increase in the tax levy from the adopted 2012 budget to $10,690,313.82. 

As a result of the adopted budget, township residents will see their municipal tax rate increase from 49.7 cents per $100 of their property's assessed value to 50.49 cents, or an increase of 3.67 percent. 

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“Given the State-mandated contributions to employee pension/health benefits and damage to Township infrastructure caused by Superstorm Sandy, Aberdeen was forced to utilize some of these exemptions, which resulted in the 3.35% increase,” said Township Manager Holly Reycraft in the release.

According to Reycraft, the township is in compliance with state budget standards and the budget has been reviewed and approved by the state. Municipalities are allowed to exceed the state's two percent budget cap to meet employee health and pension requirements, debt service and emergency spending requirements, she explained.

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“Under the statute, the Township was allowed to raise the tax levy by another $296,730,” she said in the release.

The average Aberdeen homeowner, with an assessed value of $280,000, will see an increase of $50.12 per year, or $4.18 per month. At the same time, a home with an assessed value of $325,000 will see an increase of $58.18 per year, or $4.85 per month; those assessed at $375,000 will increase $67.13 per year, or $5.59 per month; and those assessed at $425,000 will increase $76.08 per year, or $6.34 per month, according to the release. 

According to Reycraft, several factors contributed to the increase in the tax levy, including:

  • $88,000 in emergency appropriations in 2012 related to Sandy
  • A $59,537 increase in statutorily required employee pension payments to the State
  • An operating deficit of $34,943 in 2012 as a result of Sandy
  • A $74,535 increase in the reserve for uncollected taxes, as more property owners failed to pay property taxes in 2012 

These factors accounted for $257,015, or 76%, of the $338,333 increase in the total tax levy, according to the release.

According to Deputy Mayor Margaret Montone, the township is actively seeking reimbursement from the Federal Emergency Management Agency (FEMA) for damage done by Sandy.

“We are vigorously pursuing all available funds for damage to township infrastructure, such as the Cliffwood Beach Waterfront Park, two destroyed sewage pumping stations in Cliffwood, the roof at Town Hall, pedestrian footbridges in Strathmore, as well as repairing storm water conduits and roads damaged or destroyed by flooding," she said in the release, adding that the council will use all funds provided by FEMA to reduce debt service.

The township also recently for improvements to Lakeshore Drive in the Cliffwood Beach section of the township. The road, which runs along the Raritan Bay, is prone to flooding.


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