'Overriding Objective' of 2013 Budget Is Property Tax Control, Mayor Says

Though the average property tax payment in Toms River's 2013 municipal budget was unknown at its Township Council introduction Tuesday, officials said that—like last year—it is expected to remain below the Ocean County average. 

With the township awaiting action by the state on various aid funds to offset losses to property values caused by Superstorm Sandy's devastation, officials said it is not "feasible or practical" to calculate the municipal tax rate yet in the $116,522,964 2013 introduced budget. 

"The focus of the 2013 Toms River Township municipal budget is the ongoing recovery, both financially and physically, from Superstorm Sandy," said Mayor Thomas Kelaher in a news release outlining budget figures. "The storm had a devastating impact on many residents of the township and respectively on the township ratable tax base as well."

Without a finalized municipal tax rate, it remains unclear what the homeowner of a property assessed at the average valuation of $234,597—a 34 percent drop from $354,998 in 2012—will pay under the 2013 spending plan. 

The tax levy in the 2013 introduced budget is $4.329 million less than in 2012, according to the township. The amount to be raised by taxation is $60,688,644, down from $65,017,507 in 2012.

The October 2012 storm is estimated to have caused a 20 percent decrease of Toms River's ratables base, according to the township tax assessor. A townwide reassessment was completed in April of this year and includes a $2.026 billion reduction in total property value reductions in Toms River due to Sandy.  

The 2013 budget is $15.85 million larger than in 2012. Salary and wage line items are up 2.9 percent, which includes all contractual wage increases and the cost necessary to fill 10 police patrolman positions open due to retirements, according to the township. 

According to Kelaher, the township's "overriding objective" in preparing the budget is to combat a spike in property taxes as the value of Sandy-damaged properties decreased, while at the same time maintaining services. 

"If no action was taken, the substantial reduction in property assessments to Sandy-damaged properties would have resulted in a 'shift' of the property tax burden onto the properties that were not damaged," the mayor said.

Kelaher said that the township's essential services have increased — police staff a substation in Ortley Beach and Public Works employees have worked to clean storm damage. 

"So even though there has been a decrease in available revenue, the demand for services has not decreased at all," Kelaher said. 

Included in the projected revenue is a $5 million FEMA Community Disaster Loan, FEMA reimbursement of $7.134 million and $9.24 Community Development Block Grant program. More funds are anticipated—the township applied on May 16 for a total of $23.073 million in CDBG funding. It remains unclear how much of that will be funded, according to officials. 

Because of pending state review, officials said that the budget is a "working document" and may see changes before a public hearing and council vote scheduled for Tuesday, July 2 at 6 p.m. in town hall.