Mayor on 2011 Morristown Municipal Budget: 'We Have Stopped the Fiscal Tempest' (Video)

Municipal taxes in Morristown would decrease slightly under a budget presented by the town's administration and introduced unanimously by its council Tuesday night.

Mayor Tim Dougherty, speaking to the council and audience prior to Business Administrator Michael Rogers presentation of the proposed 2011 Morristown Municipal Budget, spoke of the "daunting" task of righting a financial ship that had threatened to capsize from municipal operations costs that had been escalating at "an unsustainable pace."

"Over a year ago, you may recall, I inherited a budget shortfall of more than $4 million," Dougherty said in a prepared speech. "Combine this with diminished state aid from Trenton, a significant economic downturn and a public justifiably growing weary of paying more and receiving less from its government, clearly, a municipal budget crisis was brewing."

Last year, the mayor said, the town was able to get through the budget process with a tax increase of only 2 cents per $100 of assessed valuation. "However, we knew this budget year would be just as challenging, even though the budget shortfall was not as large, given the limitations to further reduce our municipal operation costs without severely diminishing public services," he said.

In his speech, Dougherty said the town has been able to stop a "fiscal tempest" and is on the way to financial stability and health, starting with the municipal tax decrease of 2 cents.

But residents might still expect an overall local tax increase, depending on the . And the decrease in the municipal tax is due in part to the fact that the funds for the Morristown and Morris Township Library now come from a separate tax, removed from the municipal budget—one that outweighs the municipal tax decrease residents would expect to see.

Councilwoman Alison Deeb was the only member not in attendance for the vote to introduce a budget that would drop the municipal tax rate nearly 2 cents per $100 of assessed valuation. For a typical homeowner, that translates to about $63 less in tax payments per year. 

The proposed $36,535,043 municipal budget, with $1.2 million in capital improvements for fiscal year 2011, represents a 2 percent decrease from 2010, when the budget was $37,237,833, and there were $1,252,000 in capital improvement costs. Total financial budget costs (which include the sewer utility fund) would decrease 2.5 percent, from just over $48 million to $47,164,486.

The municipal tax bill for a residence in Morristown assessed at $350,000 would be $3,559.50 for fiscal year 2011, compared to $3,622.50 for 2010. That's a difference of $5.25 a month, or $63 a year. It's due to a proposed 1.74 percent decrease in the municipal tax rate, from $1.035 to 1.017 per $100 of assessed valuation. 

But those figures don't include school and county taxes. Provided the school budget , the overall tax payment for that $350,000 home would rise, from $9,047.50 to $9,347.50 (the portion for schools would go from $4,263 to $4,455). Also, new this year is a public library tax of $154.

Other financial issues also were in play, both Dougherty and Rogers said, including the termination last year by Morris Township of participation in Morristown's Colonial Coach bus service, which generated for the town an average of $55,000 a year from the township. Dougherty said increases in health care insurance and pension obligation costs, "combined with $35 million lost in our property valuation base prevented us from realizing an even larger municipal tax decrease."

The town has been able to reduce its debt by about $16 million over the last five years, Rogers said. Debt service is lower this year compared to in years past, and he offered optimism for the future, noting the overall debt service was expected to decrease in a few years.

Dougherty thanked the administration and everyone involved in the process, which he said began pretty much as soon as last year's budget had been adopted. "It's a grueling process," he said. "What an honor it is to be part of it with these gentleman and ladies."

A public hearing on the budget is scheduled for the May 24 Town Council meeting.