Bridgewater budget increases township spending by 8.6%. What does it mean for taxpayers?

BRIDGEWATER – The Township Council has introduced a municipal budget that increases spending by 8.6%.

The proposed $51.29 million budget is $4.08 million more than last year's spending plan of $47.21 million. The municipal budget covers expenses for the police department, public works, recreation and other township services.

The tax rate for municipal purposes will be 24.3 cents per $100 of assessed value, a 3.8% increase over last year's rate of 23.4 cents.

That means the gross municipal tax bill for a home assessed at $600,000 will be $1,459, up from $1,404 in 2023.

That total does not include county and school district taxes.

The municipal portion of property tax bill is only about 12.6% of the overall property tax bill. School taxes make up approximately 68.4% of the tax bill while Somerset County taxes account for about 19%.

The overall tax rate is estimated to be $1.933 per $100 of assessed value. The overall tax bill on a house assessed at $600,000 is estimated to be $11,596, down from $11,748, a 1.2% decrease due to a 5.27% decrease in the county tax rate and 1.12% decrease in the school tax rate.

The municipal tax rate would have been higher but the total assessed value of property in Bridgewater has risen 7.45% in 2024, to nearly $11.23 billion from last year’s total of $10.4 billion.

That means that even if a tax rate remains stable, the overall tax rate rises if the assessed value of a property rises, especially in a hot real estate market.

For example, a house assessed at $600,000 in 2023, assuming a 7.45% increase in value, would be assessed in 2024 at $644,700. The new total property tax bill on that home would be $12,442, a 7.2% increase.

"This budget continues our commitment to rebuilding Bridgewater's infrastructure and investing in projects that connect us both physically and digitally," Mayor Matt Moench said in a press release. "From enhancing our municipal roads to launching a new website for improved digital connectivity, we are addressing key areas that impact daily life."

The mayor said despite "rising costs due to inflation and decreased purchasing power," the budget "funds the essential programs our residents rely on."

According to the budget, local property taxes will fund $27.2 million of the $51.29 million township budget. That amount is the maximum allowable under the state's budget cap law.

The proposed budget projects a 21% decrease in revenue from the Bridgewater Commons, from $1,140,000 to $895,727.

The township also anticipates no revenue from the sale of a liquor license. In 2023, the township realized $451,000 in the sale of a liquor license that became available due to an increase in Bridgewater's population.

The budget also calls for a 33% increase in the salaries and wages for the five members of the Township Council from $27,000 to $36,000.

Councilman Michael Kirsh said "recent and constantly evolving state mandates have exerted additional pressure on our municipal budget, especially with increased statutory funding requirements for affordable housing and stormwater management.”

"Nonetheless, we have drafted a budget that not only addresses these mandates but also enhances transparency initiatives, improves public safety, and reduces our dependence on municipal debt," Kirsh said in a press release.

A hearing on the budget and final Township Council vote are scheduled for Aug. 15.

Email: mdeak@mycentraljersey.com.