Spring Lake Adopts 2024-2025 Budget: What It Means for Residents

Spring Lake, NJ - The Spring Lake Governing Body has unanimously passed the town's budget for the 2024-2025 fiscal year following a comprehensive presentation, review, and vote during the latest council meeting. CFO Robbin Kirk presented the budget, which was subsequently adopted by the Council.

The town budget approved is $24,303,734. Kirk explained that the tax rate, including all entities, equates to $0.486 per capita, resulting in Spring Lake residents paying $0.486 for each $100 worth of property they own in the borough. This amount comprises several variables, including property assessments, revenue collected, expense outlays, and any state aid. Spring Lake property assessments have risen significantly, with the average residential property value climbing by $215,646 (7.4%), from $2,904,755 in 2023 to $3,120,401 in 2024. According to the last available 2023 data from the NJ Department of Community Affairs, Spring Lake ranked third in Monmouth County for average residential property value at $2,904,755, with Deal Borough and Allenhurst ranking first and second respectively, pending updated 2024 data.

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Overall, taxpayers in Spring Lake will see a 3.32% decrease in taxes to be raised. Kirk explained, "When the home assessment rates go up, the tax rates go down." This clarification was necessary as other factors impact final tax bills beyond tax assessment rates.

What this means for Spring Lake households: The average household will pay $15,157 in taxes for the 2024/2025 fiscal year. This breaks down to $3,703 for municipal taxes, $1,090 for library taxes, $3,360 for local school taxes, $887 for county open space taxes, and an estimated $6,116 for county taxes.

On the expense side, the Spring Lake budget comprises four separate funding line items:

1. The Current Fund: At $15.34 million, it makes up 63.1% of the Borough's core budget against an overall budget of $24.3 million. This area saw a year-over-year (YOY) increase of $163,595, mainly due to a $468,128 YOY increase related to covering operating expenses, employee costs, salaries, wages, pensions, utilities, and overall operating costs. These increases, especially in insurance costs, are consistent with trends across most towns in NJ and the US. It also included a state statutory $191,638 increase in library funding, which will be rolled into future years' Borough revenue to offset increased expenses as the library is managed by Spring Lake versus Monmouth County. The net impact on taxes to be raised to cover operating expenses is $110.92 and $94.62 for library appropriations.

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2. Sewer and Water Utility: At $3.49 million, this expense comprises 14.4% of the budget, with a YOY increase of $27,249 or 0.9%. While the South Monmouth Regional Sewerage Authority (SMRSA) saw a YOY increase of $127,799, this was offset by a decline in the capital budget (projects related to water and sewer) by $141,016. Kirk outlined, "Rainfall amounts impact these expenses year to year, and 2023 rain amounts were significant. Overall utility revenues are stable, with no recommendations for a rate change this year."

3. Beach Utility: At $3.7 million, this expense comprises 15.2% of the overall budget, with a slight YOY increase of $14,175. Offsetting the expense is a revenue line that is growing YOY due to the heavy beach traffic experienced by Spring Lake, all the surrounding towns, and the entire Jersey Shore. If these trends continue for the season, revenue will likely outpace projections.

4. Pool Utility: At $1.79 million, this expense comprises 7.4% of the overall budget, with a $80,357 increase or 4.7% YOY. According to Kirk, "The majority of this increase relates to salary and wages." Revenues have already been received and are anticipated for the year.

"Uncontrollable" budget elements include the County Tax, Public School Tax, County Open Space Tax, and Municipal Library Tax. The Monmouth County tax constitutes 40% of the total taxes to be raised, or $12.4 million. This amount is what the town is obligated to pay. However, the number "is still an estimate until the county provides final numbers," said Kirk. School fees, driven by the Spring Lake K-8 program and the Manasquan School District 9-12 send/receive High School program, make up 22% of the property taxes, or $6.813 million. Due to a shared services agreement with Manasquan High School, Spring Lake residents enjoy lower school taxes compared to towns with their own full K-12 program. The County Open Space tax is estimated to be $1.8 million or 6% of the overall Spring Lake budget.

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