GLASSBORO, N.J. – During Tuesday’s regular meeting of the mayor and council the borough of Glassboro introduced its 2013 municipal budget at $22.5 million including a tax increase that would result in an extra $84 for the year for the average property owner.
The proposed budget calls for a $12.3 million tax levy to be paid by local taxpayers, about $450,000 more than in 2012. The budget also includes a 4-cent tax increase, meaning an increase of 4 cents per every $100,000 of assessed property value. This makes for a tax increase of $7 per month and $84 for the year for the average-assessed borough home, which is valued at $187,848. Last year’s municipal budget also saw a 4-cent tax increase, while 2011’s only included a 0.8-cent tax increase.
Among the main reasons for this year’s proposed tax increase is a 14 percent increase in health benefits and pensions, which accounts for nearly 3 cents of the 4-cent tax increase. During the public portion of the meeting Glassboro resident Luis Perez spoke out on the increase of such for borough employees and called for the council to “trim the fat.”
“The fact remains that we’re going to increase taxes in spite of the millions of dollars we’re collecting from Rowan Boulevard,” said Perez, who has been a resident of Glassboro for the past 53 years. “More fat has to be trimmed. We’ve got too many benefits in this town.”
Borough Business administrator Joe Brigandi said that despite the steadily increasing insurance cost of the borough, employees are now slowly being nudged towards putting their money into a joint insurance fund.
“The amount we’re receiving (in benefits) is nowhere near what the increase in premiums was,” said Brigandi.
While the revenue of the Rowan Boulevard redevelopment project has pulled about even with its costs for the borough so far, it has also contributed to a decrease in real estate ratables, as the 90 properties previously located at the redevelopment sites brought in almost $300,000 annually in property taxes. The decrease in tax revenue has also contributed heavily to the tax increase.
“We’ve had less revenue to deal with,” said councilman Anthony Fiola of the results of the decline in ratables. “We can’t go out and open up a fruit stand to make revenue.”
Brigandi pointed out, however, that eventual property tax revenue from the project has the potential to more than fill the void left by the previous properties. Fiola also expressed confidence in the project.
“Rowan Boulevard has not cost us a penny in taxes,” said Fiola. “We’ve had as much revenue as expenses from it. Rowan Boulevard has been a benefit for us.”
The public will have a chance to discuss the budget during a public hearing that will be held on April 23 at borough hall.
