Oct. 27, 2006 - 5% Tax Hike!

Franklin is facing tax rises in 2007

Franklin Township residents will see a 5 percent rise in the municipal tax levy next year and can expect a similar increase the following year, township officials said.

The township council voted 6-1 to pass a $49.9 million municipal budget Tuesday night in what Councilman Willis Sumter called "record time." Councilwoman Teresa Danile cast the dissenting vote and Councilman Brian Regan was absent for the vote.

David Stegon, of the Home News, reported that Township Manager Ken Daly said in August the township faces a potential $5.5 million deficit in the 2008-09 fiscal year primarily because of rising health-care benefits and insurance costs the township has been forced to pay as state aid has not risen with inflation over recent years.

In order to keep the tax increase level, Daly has proposed cuts from various departments throughout the township, starting with small cuts this year and increasing in coming years.

"Many townships see a deficit and just raise taxes to fill the gap," Daly said. "We try to look at our budget not only this year but five years in advance. By doing so, we can see potential problems before they arise and make plans instead of putting the burden on the taxpayers."

Daly plans to cut $2.5 million from the township's budget for 2007-08 and combine that with a budget surplus expected to be more than $9 million in 2008 to help reduce the potential deficit of $5.5 million, while still keeping more than $3.5 million in surplus for future expenditures.

In the 2007-08 budget, Daly said the town will raise extra revenue and cut spending by altering the Police Department's vehicle-replacement program to every other year, starting this year, and holding capital programs under $1 million and increasing license and nonconstruction permit fees.

The township also will continue its plan of tying one-time revenue streams to one-time expenses, such as last year when the sale of an additional liquor license went to fund renovations to the animal shelter.

"Instead of just putting the money into the surplus, we feel this is an easier way to fund projects," Levine said.

Read the Star Ledger story.   Read more about it.