A summary of the 2013 municipal budget introduced Monday has some numbers that stand out even to the eye of a math-challenged reporter, including a 19 percent drop in anticipated revenues for 2013 and a 32 percent increase in anticipated receipts from delinquent taxes.
Say it isn't so. But if it is, explanations are in order. In these hard times, will the well-squeezed turnip known as the property owner really bleed so much in back taxes? What are the specific reasons why the administration expects such a drop in revenues?
Mind you, this is the budget that the governing body accepts from the administration before being able to amend it through deliberations. The process starts with budget requests from division and department heads, which the administrations reviews first and may change. Following introduction, the City Council reviews it along with the Citizens Budget Advisory Committee and holds its own departmental hearings. The council will also have the expertise of budget consultant David Kochel to weed out errors or omissions in the document offered by the administration.
As introduced, the budget anticipates a 2.5 percent increase in municipal taxes. But if tax lien sales can't recoup the anticipated $3.8 million in 2013 back taxes - up $927,208 from 2012 - it could be more.
The notice that includes the summary of the introduced budget also states a hearing will be held at 8 p.m. on May 6 at which "objections to the Budget and Tax resolution for the year 2013 may be presented by taxpayers or other interested persons." If there is no explanation before that, the questions above may be asked.
Once the council reviews and amends the budget, there will be another hearing before adoption and final passage.Given the present schedule, passage may not take place until June or later. The CBAC will not even be appointed until May 13, but budget materials are expected to be available Monday in City Hall for an early look at the numbers.
As always, Plaintalker welcomes corrections or clarifications from readers or city officials on budget matters noted here. The 2013 Municipal Budget notice will be published and is available in the City Clerk's office for anyone who wants to take a look.
--Bernice
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Bernice,
ReplyDeleteMaybe your experience can help with this one on the budget:
I know for fact that there has been a lot of appeals for property taxes this year -last year too- so, if property owners are successfully appealing their taxes will then this be part of the reduced anticipated revenues for this year's budget? Or do these appeals go into next year? And if everyone is appealing their taxes, then, what will the financial situation be for Plainfield?
Any light on this will be appreciated. Thanks!
Yes, appeals will lower revenues. There were many successful appeals listed in the April agenda. I did not have the time to add them up and analyze them. Tax Assessor Tracy Bennett might be able to give a total by year and the effect on the ratable base. I don't think it is as bad as shore towns, where now towns only get taxes on vacant lots with no "improvements," i.e., homes, now destroyed by Sandy.
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