Montgomery property owners are expected to face a small tax increase.
The $32.6 million municipal budget was officially introduced on April 3. A public hearing has been scheduled for May 1.
The projected tax rate for property owners is 48 cents per $100 of assessed valuation, which is a 1.3-cent increase from 2024.
An owner of an average assessed home at $507,400 would pay $2,435 in municipal taxes.
“At the end of the day the tax rate is increasing 2.89 percent,” said Michael Pitts, township chief financial officer (CFO). “That is an increase of $69 annually on the average assessed home.”
Municipal taxes are one item on a property owner’s total tax bill, which also includes Montgomery Township School District taxes and Somerset County taxes.
The amount an individual pays in taxes is determined by the assessed value of his or her home and/or property, and the tax rate that is set by each taxing entity.
Commercial and residential property owners support the budget through taxes, which is projected to be $19.4 million, a $580,000 increase from that amount raised in 2024.
Main cost drivers in the budget are an increase in debt expenses in the amount of $242,000; police salaries increasing $200,000; health benefits increasing by $133,000; and police pensions increasing by $125,000.
“This year our budget is increasing $755,000 that is excluding grants,” Pitts said. “Unless you have a matching grant, it is a net zero.
“Out of that $755,000 you’ll see our major cost drivers – debt expense – that has to do with a note that went out last year and the interest is due this year. Police salaries just like any municipality that has a police department is usually the largest driver when it comes to your salaries. Police pensions that is a number we get from the state, we have no say in that number.”
The budget’s projected appropriations include $11.2 million on salaries and wages, $5.9 million on annual debt service and capital, $2.4 million on pensions, $2 million towards health insurance, $1.5 million to reserve for uncollected taxes, $960,000 towards utilities, $855,000 on social security and unemployment, $825,000 on vehicle maintenance, and $435,500 towards liability insurance.
Department appropriations include $5.5 million on the police department, $1.85 million on the Department of Public Works and streets/roads, $717,500 on the Recreation Department, and $695,500 on the Health Department.
“Recreation you see a huge decrease of $235,000,” Pitts noted. “That has to do with moving a program from the budget to the Recreation Trust Fund. That is why you saw a dip in other fees and revenues because we are moving a program from recreation current fund to the trust fund.”
Montgomery will use $5.3 million from the surplus as revenue in the budget, which is same amount used in the previous 2024 municipal budget.
Other revenues include $1.38 million in state aid, $1.1 million from interest on investments, $900,000 from uniform construction code fees, $690,000 from fees and permits, $258,000 from leases, $250,000 from interest on taxes, $168,000 from shared service agreements and $110,000 from court fees.
