Hillsborough Budget Carries $19 Average Tax Hike

The average property tax bill will rise by $19 in the $27,377,707 municipal budget for 2013 approved Tuesday night.

The budget represents a 1.6 percent tax levy increase, below the state-mandated 2 percent levy cap. The budget will change the municipal tax rate a half of a cent per $100 of property valuation, from 30.9 cents to 31.4 cents for individual property owners.

The average homeowner will see a $19 increase, from $1,139 to $1,158 on the average home assessed value of $368,700.

"Hillsborough Township operates a 54-square mile municipality with just under 14 percent of the total tax bill,” Mayor Frank DelCore said during the budget adoption. He added it's also worth noting the township maintains 14 parks and recreation fields, over 250 miles of township roads and has a very active recreation department and active senior groups.

"Balancing the municipal budget is never an easy task, but this budget with spending held to the 2008 levels, continues our approach of managing the township's spending in a fiscally responsible way,” DelCore added.

Main cost drivers in the budget include increases in contractual wages and salary increases, increased capital spending and higher healthcare costs.

"In order to continue to uphold our community to a level expected by our residents, we need to ensure that we continue to maintain an adequate level of capital spending," DelCore said in a press release.

"Also, despite rising healthcare costs, our total increase in healthcare costs was partially offset by increasing employee contributions towards health benefit premiums, which have doubled to nearly $300,000 from last year. 

"Hillsborough continues to do more with less as evidenced by once again frozen or reduced budget line items; 56 budget line items are frozen or reduced from their 2011 spending levels,” DelCore said.

In addition, total spending for the 2013 budget remains below the level of spending in 2008.

"Once again, I am very proud of the fact that we spend less today than we did when I took office in 2008. It is a testament to the priority this Township Committee places on fiscal responsibility.” 

For the 2013 budget year, state aid remains flat for the third consecutive year.

"We have had to continue to sustain, since 2010, the redirection of Energy Tax Receipts which cumulatively totals approximately $2.5 million; while expenses continue to rise and We strive to provide our residents the same level of essential services and programs that they expect and deserve,” Committeeman Carl Suraci, chairman of the Budget and Finance Committee, said.

Non-tax revenue is projected higher in the 2013 budget, but remains down $2.2 million from 2010 levels. CFO Nancy Haberle noted that "while some nontax revenues, such as interest on investments, continue to slowly decline, they are being offset by increases from other non-tax revenues, such as Uniform Construction Code fees from the Building Department."

The debt reduction plan continues resulting in a reduction of $121,475 in interest payments for 2013, while not extending the life of the bonds.

"We continue to operate the township as a business, protecting our tax payers by our diligence and watchful eye over spending," DelCore said.