Property owners will face a 2.5-cent tax increase after Pennington Council’s adoption of a $4.8 million municipal budget to fund operations in 2025.
The 2025 municipal budget, which was introduced on March 3, was adopted by council members on April 7.
With the 2.5-cent tax increase, the municipal tax rate will increase from 55 cents to 57.5 cents per $100 of assessed valuation for 2025. The owner of an average assessed home at $489,000 will pay $2,811 in municipal taxes.
Municipal taxes are one item on a property owner’s total tax bill, which also includes the Hopewell Valley Regional School District (HVRSD) taxes and Mercer 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.
Council President Nadine Stern, Councilwoman Catherine Chandler, Councilwoman Kati Angarone, Councilman Dan Rubenstein, and Councilman Charles Marciante voted “yes” to adopt the budget.
“As I said before I will begrudgingly vote for this budget tonight,” Marciante said, adding that seniors in Pennington are eligible for the state’s property tax relief Senior Freeze Program and ANCHOR program (have 65-plus and make less than $168,000). “I see no other way to continue the services we have without making cuts.”
“This is a tight budget that will only get worse in the coming years and that is why you have a (cap) bank. With these tax breaks we should be able to keep our seniors in town. We have exodus going on right now.”
“I am in favor of this (budget) for the reason Chico started us off,” Stern followed. “We have looked and are working hard. We have many non-discretionary increases. We are doing our best.”
Councilman John Valenza was the sole “no” vote.
“I think everyone knows where I stand on this,” he said. “It is a principle. I want to state vehemently that I am 100% in support of our personnel. This has nothing to do with the costs they represent to the town.”
Valenza added that he has full faith that the council and Borough Administrator Gian-Paolo Caminiti has looked for savings.
“The onus is on this council to increase revenue, and I know that is an objective,” he said.
Property taxes are the main source of revenue supporting the budget. The amount projected to be raised by property taxes for 2025 is $3.28 million.
On the revenue side, the projected budget revenues include $818,287 in the use of surplus, which is an increase of $239,535 from 2024; $189,585 from the energy receipts tax; $105,000 in uniform construction code fees; $70,000 in receipts from delinquent taxes; $57,000 from trash collection fees; $50,000 from the municipal court; and $41,900 from cannabis.
On the appropriations side of the budget, the budget will fund appropriations that include $325,745 on municipal debt service.
Additional appropriations include $733,000 for police salary and wages; $461,600 million for insurance, $433,250 for streets and roads (includes salary and wages), $301,127 for shared service agreements, $240,365 for the maintenance of the free public library, $108,000 for utilities, and $70,000 for legal services and costs.
This year’s budget drivers are: a $10,000 increase in the engineering services; an increase in buildings and grounds by $11,200 due to janitorial expenses in addition to bringing the First Aid Squad building into the fold on some service agreements such as HVAC (heating, ventilation and air conditioning); and an increase in planning and zoning salary and wages by $18,000 with the hiring of new employee and zoning officer, according to Sandra Webb, the borough’s chief financial officer (CFO).
Additionally, more than $75,000 in increased costs for insurance (which captures the hiring of a sixth officer and a police officer’s change in coverage) and the increase in the overall budget for road repairs by $57,000 despite the removal of $104,000 for the asphalt for road resurfacing.
