City Council is scheduled to hold a public hearing and final vote on a proposed $58.6-million municipal budget, which aims to raise $38.1 million through property taxes.

Support local news – become a Patron of RahwayRising.com

The lone item on the agenda for tonight’s meeting, which begins at 6:30 p.m., is the public hearing and final adoption of the budget. The governing body introduced the spending plan during a special meeting on May 19. The budget can be accessed in its entirety here.

The municipal tax levy — the amount to be raised by taxation — is slated to be $38.1 million, which accounts for 65% of total revenue. The municipal portion of the tax bill would remain the same — about $3,611 for the average home in Rahway, assessed at $133,000 — and the municipal tax rate also would remain at $2.72 per $100 of assessed value.

Two recent downtown developments are expected to begin their Payment In Lieu Of Taxes (PILOT) agreements in 2021:  Reva Rahway on Main Street and City Hall Plaza, and The Willows on Central Avenue. A payment of $157,000 is anticipated from the 219-unit Reva Rahway, and another $32,000 from the 58-unit Willows, which is aimed at people working in the arts industry.

The budget anticipates $1.796  million from 10 different developments in all, which would be about $300,000 more than the $1.492 million realized last year. That total was 7.7% more, or about $100,000, than the $1.385 million originally budgeted for 2020.

New ratables based on an increase in new construction account for $6,369,700, for an adjustment of $168,906 to the tax levy.

Municipal taxes make up about a quarter of the overall property tax bill, with about half accounted for by school taxes, set by the Board of Education, and another quarter by county taxes, set by the Union County Board of Commissioners.

Union County adopted a $520-million budget in April that raises $367 million via property taxes but does not include a tax increase for the second year in a row, thanks in part to closing the county jail in Elizabeth and sending prisoners to the Essex County facility in Newark.

If you found this post valuable, please consider supporting RahwayRising.com by becoming a Patron.