Toms River Residents Won't See Tax Hike In Mayor's 2021 Budget

Toms River NJ

10 March, 2021

1:56 PM

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TOMS RIVER, NJ — Toms River residents won't face an increase in their municipal tax rate after the Township Council heard a presentation of Mayor Maurice Hill's $135 billion budget for 2021 on Tuesday night. The budget does not include a tax hike despite "historic and unprecedented challenges" that local governments across the country faced due to the coronavirus pandemic. Township Chief Financial Officer Alex Davidson said Tuesday that Hill's administration took early and decisive action to protect local residents without interrupting municipal services. The budget, which totals $135,205,457.25, will keep the proposed municipal tax rate locked in at 67.6 cents per $100 dollars of assessed value. One cent equates to $27.69 annually in property tax and generates $1,302,702 in municipal tax revenue for the township, officials said Tuesday night. The owner of a $276,000 home in Toms River would see a property tax bill of about $1,872.80 and the typical tax bill for the average valued home is around $6,800, of which $1872 is the municipal share. The remainder, Davidson said Tuesday, goes to other taxing entities. The rate is the same value the township assessed in 2020, which council members praised Hill for in addition for seeing the township through the global pandemic in his first year in office. Officials said that Toms River ranks 21st among 33 Ocean County townships in property tax rate, which comes in 10 percent lower than the Ocean County average and 25 percent lower than the typical New Jersey homeowner pays, Davidson reported Tuesday. Council members praised Hill's ability to navigate the township through the coronavirus pandemic during Tuesday's meeting. Ward 3 Councilwoman Laurie Huryk characterized Hill's efforts as "exemplary" and called the pandemic one of the worst situations township officials had experienced in their lifetime. "He works day and night to do nothing but the best for Toms River," Huryk said, citing Hill's ability to help the township sustain services while helping others in need and has been able to keep the budget under control while working in a bipartisan effort with the council. Approximately 22 percent of the proposed budget ($135 million) is slated to be devoted to public safety while insurance and benefits for township employees accounts for 18 percent of expenditures while 11 percent of the proposed budget is slated to go to capital debt service. The budget includes the first of five annual funding payments for property tax revaluation — a state-mandated program — was negotiated down to $2.5 million from $4 million, which reduced the annual payment down from $800,000 to $500,000, officials said over a five-year payment. The township is also anticipating a $500,000 deficit at the Winding River Ice Arena due to COVID-19 restrictions as well as a minimum wage increase for rink employees. Officials said Tuesday that the township was able to avoid a property tax increase through a series of cost-savings initiatives, including $1.6 million in reduced health care costs from the previous year. Thirteen confidential staff positions were eliminated from the previous year and the township's legal department was restructured, which also led to the tax rate remaining the same. Township officials are bracing for increases in pension costs and an increase in minimum wage rates beyond 2022 as well as a hike in fringe benefit payments that will also impact future budgets. However, officials also anticipate several growth opportunities which they said could also affect future property tax rates in coming years. Hill said Tuesday night that the work put in by Davidson and other township officials last year set the township up well for a budget in which local residents won't see an increase in their property tax. "This budget came in with a zero (tax) increase and with all that we faced last year, it's remarkable we're able to pull it off," Hill said. "...I'm very proud of this town."