The gazebo in Thomas B. Reed Park in Longport is lit in yellow and blue to honor the people of Ukraine.
By NANETTE LoBIONDO GALLOWAY
LONGPORT For the first time in more than five years, Longport taxpayers will pay more for municipal services this year.
The Board of Commissioners Wednesday, March 16 introduced its $9.5 million municipal budget with a 1.5-cents tax rate increase. The increase does not include county and school taxes, which could add to the tax rate increase when those budgets are approved.
According to Chief Financial Officer Jenna Kelly, municipal officials have not approved even a slight increase in the tax rate for about five years. But this year, there were slight increases in appropriations across most budget line items, with the biggest increase coming from the police salary and wages line item. The borough also applied about $54,000 less in surplus funds to balance the budget than it did last year, Kelly said.
The amount to be raised through taxation for municipal services is up 5.61% over last year. The borough will raise $6,512,502 in taxes to support municipal services, up from $6,176,709 last year. Despite a $14.7 million increase in the ratable base, the local purpose tax rate will be 34.2 cents per $100 of assessed valuation, up from 32.69 cents last year.
Kelly said every penny on the tax rate in Longport raises $210,000 in revenue to support the budget. The total assessed valuation of the borough is $1.9 billion, and the average assessment is $1,145,130. A homeowner with a house assessed at $1 million will pay $3,419.80 in taxes in 2022, $112 more than last year.
Highlights of the budget include $100,000 more for the Police Department, an additional $100,000 as a 5% down payment to finance planned capital projects, and a $53,539 increase in the minimum library tax, which is developed through a state formula based on assessments. Any library taxes collected but not used to run the library is put into a reserve account that can be tapped for library or municipal purposes in future years.
The borough is allowed by state law to bond up to 3.5% of its total equalized valuation; however, the borough's existing bonds, one of which will be paid off in 2027, total less than a half of one percentage point.
The budget is well below the state imposed 2.4% cap on spending and the 2% tax levy cap.
Although the county has yet to introduce its budget, the borough anticipates there will also be a slight increase in the county tax rate, about six-tenths of a cent. School taxes will also likely increase the rate about one-tenth of a cent.
A public hearing on the municipal portion of the budget is scheduled for 4 p.m. Wednesday, April 14 in Commission Chambers at Longport Borough Hall, 2305 Atlantic Ave.
Copyright Mediawize, LLC 2022
