Municipal taxes on the average assessed home would rise about $49 under a proposed budget to be introduced next week.
City Council is expected to introduce a $56-million spending plan during its monthly, regular meeting on Monday at 7 p.m. that would raise $38.337 million through property taxes. The total property tax levey would rise by 1.61 percent over last year, from $37.73 million to $38.337 million.
The average assessed home in Rahway ($133,000) would see the municipal portion of its tax bill rise from $3,514 to $3,162, based on the proposed municipal tax rate of $2.64 per $100 of assessed value, up from $2.68. That does not include the school board or county portion of property taxes. Last year’s budget saw an increase of $82 on the average assessed home.
The municipal budget will be sent to the state Department of Community Affairs (DCA) before a public hearing and final adoption before City Council this summer.
A change to retiree health benefits by the state is expected to bring a savings of some $900,000, according to Chief Financial Officer Frank Ruggiero. The employee group insurance line item of the budget indicates $6.9 million for 2019, compared with the $7.8 million actually spent in 2018 and the $7.65 million originally budgeted.
On the flip side, terminal payments spiked from a typical $300,000 annually to $900,000 due to the retirement of seven members of the Police Department. Terminal pay is for unused vacation and sick time.
It’s the first budget in many years (or possibly ever) that includes a Parking Utility rather than an autonomous Parking Authority that sets its own revenues and expenses. The 2019 budget anticipates total revenues and expenses of $1.542 million.
Revenues include $1.062 million in parking fees and another $480,000 ground lease. Expenses include $340,000 for salaries and wages; $600,000 in other expenses; $12,000 for public employees retirement system; $180,000 in payments of bond principal and $140,000 for interest on bonds. The Parking Utility budget anticipates a $270,000 surplus, which would go to the general budget.
