Old Bridge Township Faces Budget Challenges in 2025 Amid Rising Costs and Tax Increases

The Old Bridge Township Council meeting focused heavily on the budget and tax rates for 2025, revealing an increase in the municipal tax rate and a projected rise in costs due to inflation and unexpected contract changes. The council discussed the financial pressures on residents and the township’s efforts to maintain essential services.

01:14The meeting’s primary focus was the budget development process, led by the township’s Chief Financial Officer, Dawn Fabota. She outlined a careful year-long process, emphasizing transparency and public involvement. The budget process begins in August with department heads receiving guidelines for budget requests, followed by multiple rounds of meetings to finalize proposals. The budget, introduced in February, undergoes detailed examination in subcommittee meetings, allowing for public questions and input. This process culminates in a public hearing, leading to the budget’s adoption in late March or early April.

06:32The revenue sources for the municipal budget were discussed in detail. The largest portion, approximately 52.66%, is derived from the municipal tax levy, projected at $38.6 million for 2025. This is complemented by a $13 million surplus from the fund balance. State aid contributes about 8.65% of the budget, although it has remained relatively flat since 2011. Challenges persist with unfunded mandates that require funding while keeping taxes manageable for residents. Additional revenue comes from permits, local revenue, grants, and investments, fluctuating yearly. A notable mention was a $1.3 million police technology grant, highlighting the township’s strategy for securing grants through Millennium Strategies.

14:25The 2025 budget is set at $73,382,373, marking an increase of around $892,000 or 1.23% from the modified 2024 budget. This figure excludes significant emergency appropriations from the previous year, which would skew comparative analysis. Fabota explained that the budget might be modified further throughout the year based on new grants or emergency needs, such as previous gasoline price spikes requiring budget adjustments.

16:22The municipal tax rate is projected to be 1.030, a 1.68% increase over the previous year. For an average home assessed at $157,373, this results in an additional $27 for the municipal tax portion. Recognizing the financial strain on residents, particularly seniors, the council discussed a reimbursement program designed to assist them, although the requirement for upfront payment poses difficulties for some.

18:20Public safety accounts for about 25% of the total budget, with employee costs, including salaries and benefits, comprising approximately 65%. These expenditures cover essential services such as the senior center, recreation, and public safety. The council acknowledged the township’s efforts to maintain efficient operations despite rising costs due to inflation, impacting sectors like health insurance and contracted services such as recycling.

The municipal tax levy represents about 17% of the overall tax rate, funding a wide range of municipal services. The remaining 83% of tax revenue is allocated to entities like the Old Bridge Board of Education, Middlesex County, and local fire districts. The township collects taxes for these entities and must pay them their levies fully, regardless of actual collection rates from residents.

25:09Concerns were raised about the unpredictable nature of budgeting, especially given recent inflation trends. One council member highlighted inflation as a issue for budget planning, noting the need for a budget cushion to accommodate potential price fluctuations. State regulations impose limitations on annual budget increases, with the appropriation cap allowing an automatic increase of up to 2.5% and a potential increase to 3.5% through specific ordinances. The township was just under the cap by about $1,000 this year.

An unexpected challenge was a 39% increase in the recycling contract, reported in mid-February. This significant rise resulted in frustration over the timing and magnitude of the change, with concerns about similar situations in the private sector. Rising health insurance costs were also a concern, complicating efforts to provide adequate employee benefits while managing budget constraints.

Note: This meeting summary was generated by AI, which can occasionally misspell names, misattribute actions, and state inaccuracies. This summary is intended to be a starting point and you should review the meeting record linked above before acting on anything you read. If we got something wrong, let us know. We’re working every day to improve our process in pursuit of universal local government transparency.

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