No Tax Increase In Gloucester Township's Proposed Budget

GLOUCESTER TOWNSHIP, NJ — A year after increasing taxes amid the coronavirus pandemic, Gloucester Township Council introduced its proposed $69,074,204.92 budget with no tax increase Monday night.

If approved at the May 10 council meeting, the tax rate would remain unchanged, with a total amount of $53,333,030.92 to be collected through taxation, according to a copy of the proposed budget provided to Patch.

Resident Pete Heinbaugh asked during Monday night’s meeting asked if a sub-committee would be put together to examine this year’s budget, similar to the one that was assembled during last year’s process.

“I have not appointed one,” Gloucester Township Council President Orlando Mercado said. “Today, council just received their budgets. Mr. Cardis will formally introduce the administration’s budget for the upcoming year, and it’s my discretion if I have to appoint a sub-committee.”

Councilman Dan Hutchison said he would be going through the budget with two other members of council, and asking any questions that need to be answered, but it is not a formal sub-committee.

“I’m going to look at each department, and I’m going to look at how they’re spending money in each department,” Hutchison said. “I’m going to answer any questions (Councilwoman Carolyn) Grace might have as this is her first budget. If I can’t answer her questions, I’m going to ask the administration questions for the department heads who are out of town. I will ask the mayor and the administration if I can ask questions of the department heads.”

The sub-committee was formed last year after public outcry over a proposed increase in the budget as residents across the township and the state struggled financially in the beginning stages of the coronavirus pandemic.

The budget was ultimately amended, and the tax increase was lowered from 10.47 percent to 9.75 percent. Councilwoman Andrea Stubbs, who was on that sub-committee, was the lone no-vote on the budget, but didn’t provide any reason for her vote. Read more here: Amended Tax Hike Approved In Gloucester Township

This year’s proposed budget lists a surplus of $3,180,000, an increase of $420,000. The township anticipates $7,054,715 in revenues (a $1,331,482.50 increase), and $5,106,459 in state aid, as well as $4,514,607,300 in ratables and $400,000 in delinquent taxes.

Some recent federal grants awarded to the township due to the coronavirus are not recognized in this proposed budget because the township doesn’t know what that money can be used for yet, Township Administrator Tom Cardis said.

The total increase in revenues is expected to be $173,152.13, while appropriations are expected to increase by $178,152.13.

Salaries and wages are expected to increase by $831,859.00 (3.08 percent) from $27,002,410 to $27,834,269. “Other expenses” are also expected to increase, by $935,287 (4.20 percent), from $22,243,509 to $23,178,796.

Statutory and deferred charges are expected to go up by $544,395 from $8,027,667 to $8,572,062. Debt service would decrease by 3.07 percent, from $8,652,804 to $8,386,900 (a $(265,904 decrease).

Open space and local school taxes are expected to remain flat, while taxes from the Black Horse Pike Regional School District are expected to decline by 3.67 percent. County taxes are expected to increase by 3.43 percent.

On Monday night, Township Council also passed a resolution to anticipate miscellaneous revenues for the upcoming budget using the three-year average of realized revenues from the prior three years. Specifics on the proposal can be found here.

Township Council previously approved a proposed ordinance to exceed the municipal budget appropriation limits and establish a cap bank. By approving the proposal, council allowed the township to increase its budget by 3.5 percent over last year's final appropriations and bank the excess as an appropriation.

The additional proposed increase amounts to $1,416,664.65, according to a copy of the proposal posted on the township's website. In all, the 3.5 percent increase amounts to $1,983,330.51. Read more here: Gloucester Township Council Approves Annual Budget Cap Proposal