Bernards Township Proposed Budget Accounts For COVID Revenue Loss

BASKING RIDGE, NJ — Bernards Township is far from alone in dealing with financial issues associated with the coronavirus pandemic. The municipal government faces a common challenge of preparing next year's budget, while accounting for lost revenue and expenses associated with COVID-19.

The township government lost $1.4 million for the 2020 fiscal year, according to Sean McCarthy, the township's chief financial officer. McCarthy presented the preliminary 2021 municipal budget at March 23's township committee meeting. The committee approved the budget for a public hearing and potential adoption April 27.

See the presentation here.

The proposed budget of $41.9 million calls for an increased tax rate of 1.96 percent over the current municipal year. But because of lost revenue, the budget slightly decreases from 2020's total.

The municipal services tax rate would equal $0.312.

"This was a challenging year," said Mayor Janice Fields. "However, despite losing $1.4 million in revenue during 2020, the township is able to deliver a responsible budget and tax levy for 2021. We will be maintaining all township services and provide a fully funded $5.9 million capital budget in order to maintain the township’s infrastructure again for 2021."

See more details below:

The township has $462,058 in COVID-19 relief that it can include in the 2021 budget. Bernards Township also received $2,656,002.55 from the American Rescue Plan Act — a federal COVID relief package signed into law March 12.

But township officials don't expect the recently allocated funds to become available in time for the upcoming municipal year. The township was advised that half of the $2.6 million will arrive in the coming months, while the municipality will secure the second half later this year or early 2022.

"We don’t know how or when this funding can be used," Fields said. "Our expectation is that the bulk of the funds will be used to offset significant revenue losses and unexpected emergency COVID-19 expenditures incurred by the township in 2020."

The township committee's April 27 meeting is set for 8 p.m. Officials release township committee meeting agendas a few days before each gathering

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