Newton’s proposed budget has small tax increase

A preliminary 2023 municipal budget would raise taxes on the average home by about $60 a year, Town Manager Thomas Russo Jr. said during a public hearing on the budget Wednesday, Feb. 22.

The $16.4 million spending plan includes about $1.8 million in grants. Last year, the budget was about $14.3 million, with about $243,000 in grants.

“The reason the budget is as high as it is is predominately because of the grants being more substantial at this point in time,” Russo said.

Rep. Josh Gottheimer, D-5, recently announced a federal grant of $1.3 million to upgrade communications equipment for first-responders in four towns, including Newton.

About $9.5 million of the budget will come from property taxes in 2023, compared with about $9.2 million in 2022..

The preliminary budget shows an increase of $11.5 million in the total assessed value of all ratable properties because of recent development. It is the biggest increase in more than seven years.

Nearly 60 percent of the budget goes to salaries and employee benefits, Russo pointed out. Newton has 63 full-time employees and 82 part-time and seasonal employees and interns.

The cost of health benefits is up about 4 percent, compared with a 32 percent jump in the state employee benefits plan.

Russo noted that many municipalities are applying to join the North Jersey Municipal Employee Benefits Fund (NJMEBF), which Newton joined in 2010. He became secretary of the NJMEBF this year.

“It’s the difference between managing it yourself and letting the state manage it for you,” he said.

Water and sewer rates are expected to increase during the next four years, Russo said, noting that the rates have not changed in six or seven years.

The Town Council is scheduled to discuss those rates at its meeting Monday, Feb. 27.

State aid to Newton is up about $55,000 from last year in the preliminary budget.

Russo does not expect to see much tax revenue from cannabis businesses for a few years.

Slightly more than half of residents’ property taxes goes to the schools, about a third to the town and about 14 percent to the county.