Proposed Municipal Tax Increase Eliminated

BERKELEY - On Tuesday, September 21st, the Berkeley Township Council, under the leadership of Council President Carmen Amato, unanimously approved the 2010 municipal budget which calls for NO TAX INCREASE. In April of this year, Mayor Jason J. Varano presented to the Council his 2010 budget, which called for the largest municipal tax increase in Berkeley Township's history, up $3,093,843 from 2009. That equates to 5.9 cent tax increase per $100 of assessed valuation. Under Varano's spending plan, the amount to be raised by taxes to support his $39.2 million budget was $ 29,011,464. Over the last 3 weeks, Council President Amato, along with Council members Karen Davis, Judy Noonan and Fran Siddons, spearheaded two budget amendments. The first amendment, held on September 7th, reduced the spending plan and the amount to be raised by taxation by $1.7 million. However, one shortfall was discovered by auditors in the calculation of available surplus. Administration officials anticipated $800,000 in available funds, only to have the auditors discover $500,000 was available. The shortfall of $300,000 and the non-sale of a liquor license, Varano had hoped to sell to support the spending plan, to the tune of $400,000 needed to be made up. The net reduction in the first amendment was about a million dollars. The last amendment on September 17th utilized additional unexpended capital surplus funds to offset a portion of the municipal debt service. Both amendments reduced the overall spending plan and eliminated the proposed tax increase of $3,093,843 by the Mayor. "These are difficult times for our residents. Over the last few months the residents have sent the message loud and clear. They wanted tax relief and it was our responsibility to provide it to them. I'm pleased to report through hard work we delivered some tax relief." Amato said. "This year's final adopted budget represents an increase of 2.2 percent over last year's budget, $38.8 million. Which is in line with Governor Christie's 2% cap for local governments. However, the amount to be raised from property taxpayers will be the same as 2009, $25,917,621, resulting in no tax increase." Amato said. "With the elimination of the Mayor's proposed increase, the mailing of the fourth quarter municipal tax bills will be a little lighter". Amato concluded. The proposed municipal tax rate by the Mayor was to be .559 cents per $ 100 of assessed valuation. The approved municipal tax rate will be .500 cents per $ 100 of assessed valuation.