2019 Budget – No Increase to Municipal Tax Rate

At the April Council meeting, I introduced a budget with no municipal tax rate increases for 2019.  I expect this budget will be approved at our May meeting. 

This is the result of many things including our fourth year of AA+ bond rating by Standard & Poor’s, our very stable surplus and our successful collective bargaining agreements with our dedicated employees.

Most importantly, we are careful guardians of your tax dollars to provide the highest quality services in a fiscally responsible manner.  This is my charge and I work each and every day to make sure we manage your resources wisely. 

Here are some of the ways I have worked with the Council to deliver a budget with no tax increase this year. 

Our largest area of budgetary savings emerged from successful negotiations and redesign of the Township’s employee healthcare plan. The new program saved the Township more than $700,000, reducing the impact to our budget by more than ten percent while being a fair solution to our employees and taxpayers.

We have taken advantage of rising interest rates and increased our interest revenue by over $300,000.  These efforts help contribute to a stable tax rate and will keep us the second lowest overall tax rate in the County. 

Importantly, our budget success also comes from our manageable and flat debt service and our ability to take advantage of historically low interest rates.  I am pleased to report that Monroe Township uses only 20 percent of State Department of Community Affairs debt capacity. 

Regarding taxes, I want to thank our residents.  Monroe is a desirable community with amazing services and terrific people.  We are the safest city in Middlesex County and third safest community in the state.  We have the most professional police department and first responders.  We have the most impressive and active library in Central Jersey.  I am always excited to see our kids, teenagers, parents and seniors using this magnificent facility. 

I am also proud that this year, for the first time, we have been able to expand senior programming at the senior center to nights and the weekend to serve our working seniors. 

Unfortunately, for the tenth consecutive year, municipal aid remains flat with no increase from the State of New Jersey. Last year, I helped lead the fight with Assembly Speaker Craig Coughlin to reverse the cuts on the homestead tax credit for seniors and disabled. We succeeded and our residents received $3.3 million in 2018.       

I am pleased to learn that the County will keep their tax rate flat in 2019 as well.  All of these combined efforts will help to allow us to maintain our spot as the second lowest overall effective tax rate in Middlesex County. 

The municipal portion of property taxes controlled by the Mayor and Council is 20 percent of your total property tax bill.  The balance breaks down as follows:  Board of Education 56 percent, Middlesex County 18 percent and Fire Districts six percent.   All of the municipal services afforded to the average Monroe Taxpayer cot less than $1,500 per year. 

My pledge to you is to continue to be a good steward of the public’s resources for the betterment of our community. This budget without a tax increase is another step in that effort.