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Main, News
By FRED T. ROSSI on
February 8, 2024
SP Council Discusses Budget, Sees $72 Avg. Rise in Taxes

SCOTCH PLAINS – The township council will introduce the 2024 operating budget next month, and it’s expected that the municipal portion of the total property tax levy this year will rise by about $72 for the average household, thanks to higher expenditures for health insurance and pension contributions along with increased funding for the library.

SCOTCH PLAINS – The township council will introduce the 2024 operating budget next month, and it’s expected that the municipal portion of the total property tax levy this year will rise by about $72 for the average household, thanks to higher expenditures for health insurance and pension contributions along with increased funding for the library.

At a budget meeting with council members and department heads this week, Township Manager Al Mirabella reviewed his spending proposals and revenue projections while the governing body discussed spending needs with department leaders. He said the budget’s aim is “to provide essential services” to residents “in the most cost-effective manner.”

He told the Union County HAWK that the township remains on “very solid financial standing,” as evidenced by its triple-A bond rating, which has been reaffirmed annually for the past several years. “That’s an objective outside look” at the Township’s finances, Mr. Mirabella said, adding that less than 10 percent of municipalities in New Jersey have that top rating. “We’re proud of that,” he said, pointing to “good management, good leadership, healthy reserves and high tax collections.”

Mayor Joshua Losardo told HAWK that “we will continue prioritizing Scotch Plains’ needs while stretching every dollar to the fullest.”

Total appropriations this year will be just over $30 million, with salary appropriations for municipal employees amounting to $11.35 million, an increase of just under $700,000 that Mr. Mirabella told the council is due mainly to contractual salary boosts. A significant factor in the overall rise in appropriations comes from the fire department’s newly-minted ambulance service, which began operations last summer. Mr. Mirabella told HAWK he hopes the service begins to break even in the next year. Another factor is an increase in police overtime costs, which is due to vacancies and personnel on leave for various reasons. Mr. Mirabella said that Police Chief Jeffrey Briel has “done a good job” recruiting new officers, bringing the department close to full strength. The library’s state-mandated budget will increase by $139,000 to $1.826 million.

On the revenue side, it is anticipated that state aid will remain at $2.27 million, the same level it has been for more than two decades, while $3.7 million of township surplus will be used this year to offset tax increases.

The municipal property tax rate this year will rise to $1.691 per $100 of assessed value, with the average tax levy for the municipal portion of the overall property tax bill rising by $72.79 versus the $85 increase last year. Municipal taxes will comprise 14.3 percent of the total property tax bill, one of the lowest percentages in all of New Jersey.

The council on Monday also discussed various departments’ capital budget requests, which include funds for road repairs, new trucks for the public works department and trafficcalming measures for the police department. The focus for parks improvements this year will likely be on Kramer-Manor Park—with a “pretty big price tag” for replacing the basketball and tennis courts, according to Mr. Mirabella—and, to a lesser degree, Haven Park.

It is anticipated that the operating and capital budgets will be ready for introduction in March, with a public hearing and adoption set for April.

The council at its budget meeting also approved the hiring of former chief financial officer Theodore Georgiou as interim CFO, effective next week. He will replace Chris Macaluso, who is leaving his position after 18 months.

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