The average assessed home in Rahway is expected to see a modest decrease in the municipal portion of their tax bills under a spending plan introduced last week.
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City Council introduced the municipal budget (6-0 with three members absent) during a roughly 8-minute special meeting held via Zoom on Thursday night, specifically to introduce the budget. A public hearing and final adoption of the 2022 budget will be held July 28 at 6:30 p.m. The complete 89-page municipal budget can be accessed here.
The $61.8 million spending plan will raise nearly $38.3 million via local property taxes. The average home in Rahway, assessed at $133,000, is expected to see a $3 decrease in the municipal portion of their property taxes, according to Chief Financial Officer Frank Ruggiero.
Last year, the budget was introduced in May and approved in June. Municipal taxes remained roughly the same for the average home last year, at about $3,611, with a municipal tax rate of $2.72 per $100 of assessed value. The municipal budget accounts for one of three parts of the property tax bill and comprises about a quarter of the total. The school portion of property taxes accounts for about half and the county another quarter.
The 2022 budget anticipates $1.9 million in American Rescue Plan (ARP) funds, up from $1.2 million in 2021. In the 2020 budget, the city received $2.7 million in CARES Act funds.
The city also plans to use $3 million of its $8.7 million surplus, leaving a reserve balance of $5.769 million. The city used $2.5 million in surplus in the 2021 budget.
The budget estimates $10.229 million increase in ratables from new construction, which generated approximately $270,864 toward the tax levy. Payments In Lieu Of Taxes (PILOTs) are anticipated to bring in $2.28 million. Last year, $1.796 million was anticipated and more than $2 million was realized (more details on that in future post).
Some $1.635 million in anticipated operating surplus from the city’s public utilities will be used as revenue in the budget, up from the $1.608 million used in the 2021 budget:
- Water utility – $960,000, up from $783,417 in 2021
- Sewer utility – $0, down from $421,925 in 2021
- Parking utility – $675,000, up from $403,450 in 2021
The three utilities still anticipate surpluses totaling almost $1.5 million in 2022:
- Water utility – $135,022
- Sewer utility – $854,639
- Parking utility – $500,000
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