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    Pohatcong Township to Introduce Budget in August, with 3.98% Increase

    By Danielle DeGerolamo,

    2024-07-20

    https://img.particlenews.com/image.php?url=1DJLEj_0uYFEekG00

    Pohatcong prepares to introduce 2024 budget at August meeting. Read on for the date, time and what to expect in your municipal taxes.

    Credits: TAPinto Phillipsburg Staff Photo

    POHATCONG, NJ - At the July 16, 2024, meeting at the Pohatcong municipal building, a resolution was approved to introduce the 2024 budget of the Township of Pohatcong, Warren County.

    The budget will "restore appropriations and operating expenses where things need to be in the operating budget," said the CFO, Ann Cucci, noting that it has been cut over the years. To fully fund capital without going into debt, they will ensure that everything is within the budget moving forward. That’s a plan.

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    Improvements; Unfunded Mandates

    The budget plan overview stated they will fully fund capital projects again to avoid borrowing. Some planned improvements include IT improvements mandated by the insurance carrier, such as Cybersecurity, that cost an estimated $12,000. Unfunded mandates impact the operating costs of the municipalities, often at the expense of day-to-day costs.

    Other items in the capital budget include replacing vehicles and equipment, and proper security regarding banking and payments. A full budget will be presented at the August meeting.

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    PILOT revenue is expected to minimize tax increases. A 3.98% Increase expected

    PILOTS, Payment in Lieu of Taxes, are anticipated to generate revenue back to the town where they have been getting zero, mainly in undeveloped areas where they presently get zero, explained Cucci. The PILOT will offset additional increases in appropriations without overtaxing the residents.

    Cucci also noted that the township is under state review this year, which happens every three years.

    The recommended tax levy is 3.98%, under the goal of 4%. The estimated increase is $124.00 per household for the municipal levy,, said Cucci. Census data reports there are just 1,389 households in the suburban town of just over 3,000 people. The township is 13.4 square miles by the 2022 5-year census report. The homeowner-to-rental ratio is nearly 88% homeowners, with approximately 12% renting.

    Statutory increases, $15,000 in IT improvements, and money for road repairs are also included in the 2024 operating budget. The Pohatcong budget for local purpose tax in 2023 was $5,230,271.

    "I think we are going in the right direction; we have a lot of work to do going forward to get where we want to be," said CFO Ann Cucci, who introduced her second budget to the Township. All part of peeling back the onion.

    Chief Robb noted utilities have increased in the Township, just like every resident. Noting operating expenses were at one point $87,000 over the 3.5% cap, he said they did everything they could to keep services and use grant funds to maximize resident services that may have had to be eliminated, such as street sweeping and leaf collection. They will remain in this budget. Robb also spoke about minimizing ratable increases annually as a better option than cutting services, staff, and services that directly benefit the residents. Debt service, school tax collection, county taxes, and insurance costs are all outside their control, but they are continuing to find ways to balance the added expenses/

    For roadway maintenance, $25,000 was put back into the capital, and Robb explained they plan to put money back in annually. To avoid going back to debt service, "baby steps" of $25,000 will allow future repairs to be utilized. Mayor Slack noted that once it was cut from the budget, it took years to restore it, enabling the Township to do repairs and maintenance without borrowing, which can be expensive.

    Robb also noted that all retirements are set aside and planned for, so there will be no surprises or one-time unplanned additions. This is a three-year plan, so no one will be caught off guard by unfunded retirements. Leftover funding from items, such as unused storm funds for salting, was used to create this plan.

    Also noted in the budget was a revaluation of the properties in town. As property values increase, towns can revalue the city, which is typically a good thing for property owners, decreasing the tax rate. It doesn't change the budget; the math of a higher valuation reduces the percentage of tax paid.  As of the 2020 census, the median value of owner-occupied homes was $250,200.

    Slack commended Cucci on her work, and councilman Kevin Melvin noted that the onion is still being peeled, but they are peeling it a little more, said Cucci.

    The budget will be introduced on August 14, 2024, at 4:00 PM, which will then be avaialblet to the public for review.

    Read more:

    Pohatcong Township Promotes Sergeant Mike Cozze to Lieutenant

    Pohatcong Looks to Solve Noise and Traffic Complaints "Warm Weather is Fine, but Noise, not Fine" – Mayor Slack.

    For more local news, visit TAPinto.net

    Related Search

    Pohatcong townshipUnfunded mandatesTax rate impactCapital projects fundingDebt serviceWarren county

    Comments / 1

    Add a Comment
    Bhakti Curtis
    07-21
    When are they going to acknowledge the racial profiling occurring in their municipal Court system? All those Balck & Latino drivers profiled off hwy 78....👎🏽👎🏽👎🏽
    View all comments

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