Morristown Would See Slight Town Tax Decrease

Morristown taxpayers would see a slight decrease in their municipal tax rate under the Fiscal Year 2012 Executive Budget, which will go to a vote before the town council April 24.

And a slight decrease in this case means slight. The municipal tax rate would go down 1/10th of a cent per $100 of assessed valuation, to $1.016. The average assessed property in Morristown at $350,000 would pay $3,556 in 2012 for municipal taxes (down from $3,559 in 2011). That doesn't account for county, library or school taxes, which are set separately.

With school, library and county tax rates factored in, the overall rate would be $2.62 per $100 of assessed valuation, down from $2.64. The tax payment for all those levels of government would be $9,152, down from $9,222.50. But that's contingent on voters —if they shoot it down, the rate could be different.

For Morristown property owners, the new budget means a very small tax decrease, but "it's still a decrease," Business Administrator Michael Rogers said during his presentation last week. "We like a decrease."

The budget would shrink from 2011's $47,164,486 to $46,720,642.

It carries with it a tax levy (the total amount of property taxes to be raised throughout the town) of $22,582,326 — which is still $841,834 below the maximum level it could have been this year, $23,424,160. State law restricts tax levy growth year over year to 2 percent, though it allows for exceptions to deal with certain types of costs.

The Executive Budget includes the Operating Fund–municipal budget ($35.9 million, down from $36.5 million last year) and its Capital Improvements Plan ($1.75 million, which is up from last year's $1.2 million); and the Sewer Utility Fund–the sewer utility budget ($8.9 million, down from $9 million last year) and the Sewer Utility Fund's Capital Improvements Plan ($200,000, down from $377,000 last year).

Surplus is anticipated to total $1,460,000. Of that surplus, Rogers said in his presentation, $543,985 would be reserved for municipal operations; $450,000 reserved for tax appeals; $164,000 reserved for salary and wage increases; and $100,000 reserved for vacation and sick time. This is a reduction of last year's surplus of $1,923,000 because, as Rogers said, "there's just less available."

The town would use $90,000 of surplus remaining from Fiscal Year 2011 for emergency appropriations; $58,000 for a fire truck lease payment; $45,000 toward the Capital Improvement Fund; and $9,015 for any other deferred charges.

State aid saw a decrease, which has continued a downward trend. Rogers said state aid revenue represented 11.01 percent of the town's total operating revenue in 2007. In 2011, it was only 7.48 percent.

Since 2010, Rogers said, savings have come to the municipality through a number of sources. Since that time, the town has opted not to fill 26 vacant positions. It's started new initiatives, including moving to the  and , which eliminated additional jobs at the local level, totaling $2,207,235. Sixteen positions were elimated through workforce reduction—in other words, layoffs—totaling $956,208. None of the layoffs, however, occurred this year, Rogers said. But, they, along with the unfunded vacant positions, have contributed to the $3.1 million in savings this year compared to what the town would pay if those positions were filled. Over three years, 2010-12, he said the cumulative budget cost savings were expected to be $7.5 million.

Mayor Tim Dougherty noted a number of developments for 2012, including the hiring of eight new police officers, with another two expected to be hired before the end of the year. He also cited $225,000 earmarked for road and sidewalk improvements along Morris, Elm and Lackawanna streets, as well as $100,000 for a beautification plan along Speedwell Avenue.

"These efforts, combined with long-term planning, will ensure our financial sustainability for many years to come," the mayor said, citing the administration's Executive Budget Team, including Rogers, newly appointed Chief Financial Officer Ann Cucci and department heads for their work on the budget "and fostering a cooperative, responsive municipal service delivery that our citizens feel proud to call Morristown their community."