Moorestown's Draft Budget Includes Tax Increase

MOORESTOWN, NJ — If the draft budget presented during Moorestown Council’s budget workshop is ultimately approved, the average homeowner will see an increase of $68.69 next year.

Township Council got to work on the proposed $26,795,000 budget during a virtual meeting Wednesday night. The proposal calls for a 3.26 percent tax increase, coming out to about a 1.5 cent increase over last year’s tax rate. No increase is expected for the utility budget.

The owner of the average Moorestown home assessed at $457,887 would now pay $1,964.34 in taxes annually, up from $1,895.65 the last two years. It was the first in a series of discussions Township Council will have in public before introducing the proposed budget at a date yet to be determined. No official action has been taken.

“2020 was a challenging budget year with respect to the impact of Covid-19 on certain revenue sources and newly required expenses to put in place personal protective equipment (PPE), provide cleaning and sanitizing supplies and upgrade equipment and software to conduct public meetings online,” Township Manager and Chief Financial Officer Tom Merchel said in the budget introduction document. “Fortunately by delaying the adoption of the 2020 budget, we were able to offset much of the impact from loss of revenues by reducing salary expenses in the short term for any open positions and deferring other discretionary expenses. Through the budgetary steps taken and steadfast management during this crisis, Moorestown was able to successfully endure the pandemic and come through in good financial position going forward.”

The township anticipates using $3,215,000 from its surplus for the upcoming year. It’s the same amount the township used last year in an effort to pay for the additional costs presented by the pandemic while not raising taxes on residents, many of whom were struggling financially. Read more here: Moorestown Holds Line On Taxes Amid Coronavirus Pandemic

At the end of last year, the surplus was about $5 million. Merchel has said he feels comfortable using about $2 million in surplus each year, and it appears the township will be headed back in that direction in the upcoming years, as payments to Moorestown Mall owner PREIT for tax appeals disappear.

The Township is paying $850,000 for appeals filed by Macy's and Lord and Taylor. That will be completely paid off in 2023, and will disappear from the budget beginning in 2024. This is the final year the township will have to make a $325,000 payment, Merchel said.

Merchel is also hoping the sales of two new retail liquor licenses that were recently approved will also help replenish the surplus and ease the burden on taxpayers. Read more here: Retail Liquor Licenses Get Final Approval In Moorestown

The township expects a drop in the collection of miscellaneous revenues to $5,526,884. Last year, it was $5,566,640. It also expects to collect $480,000 in delinquent taxes, as opposed to the $828,701 collected last year.

The township projects a 2.51 percent increase in salaries and wages for township employees, up to $8,948,192 from $8,728,783.

Increases are also expected for “other expenses,” which will go to $7,5171,306 from $7,296,006 (3.77 percent); statutory expenses, which go to $2,042,919 from $1,883,569 (8.46 percent); and debt service, which will go to $4,289,965 from $4,185,770.

A 23.71 percent reduction is expected for the reserve for uncollected taxes, which drops to $1,336,882 from $1,752,266. The Public Library Tax will also drop 1.66 percent, to $1,655,736 from $1,683,606.

The township’s next budget workshop will be held virtually on Monday night, 6 p.m., before the township’s regularly scheduled council meeting.