Cranbury Approves 2012 Budget, Residents Face Tax Increase

Cranbury residents can anticipate on average a $93 increase in taxes from 2011, now that the Township Committee has approved the 2012 municipal budget.

The budget calls for a tax rate of .410, increasing yearly taxes to about $2,481 for the average home assessed at $605,143. The budget passed 4-1, with committee member Jay Taylor voting against it.

Taylor said the committee was unanimous in the spending plan for 2012, but he felt the 1.5-cent increase in tax rate was too much.

“I looked at the numbers and based on the data available I felt it was appropriate to increase the rate anywhere from half a cent to one cent,” he said in an email Tuesday. “The additional half a cent difference was not material in terms of it coming from our overall surplus at this point in time, but I understand it is material to many of the residents.”

Overall, Cranbury’s assessed property value has declined by more than 17 percent over the last four years, Township Administrator Denise Marabello said at Monday’s budget presentation. In 2011, the total assessed value was $1.6 billion, whereas in 2012 it falls at $1.5 billion – a decline of $57.4 million.

“The reason for the escalation in the tax rate is not spending, or an increase in the amount to be raised by taxation, but rather the decrease in property tax values,” Marabello said.

Taylor and Committee Member Dan Mulligan both expressed frustration over the state not returning money collected from Energy Tax Receipts.

“If that money had been returned as is constitutionally required the committee likely would not have even had to discuss a tax increase the last two years,” Taylor said in an email.

Mulligan said the Township was being shortchanged about $300,000 this year alone from the withholding of the Energy Tax Receipts, and said if they had that money the they would probably be looking at a no tax increase and a flat budget.

“We’re not getting our fair share of Energy Tax Receipts,” Mulligan said. “That’s money that should rightfully be coming here but it’s going to the state and their keeping it to fill their coffers at this point.”

Some of the other challenges the town has faced for the 2012 budget include a decline in ratables, major capital projects, such as sewer improvements and the Brainerd Lake dam, an increase in costs for insurance and a larger reserve for uncollected taxes, Marabello said.