Manasquan Approves 1.1 Cent Tax Increase

Update: Manasquan Council held its budget hearing Monday, and approved its budget with a slight amendment to line items.

The total budget of $10.2 million with a 1.1-cent tax increase was approved unanimously.

No one from the public spoke for the budget hearing.

Original story:

Manasquan taxpayers may see a 1.1 cent tax increase that factors in widespread revenue loss due to Hurricane Sandy, officials said. The proposed Manasquan municipal tax rate would grow 3.03 percent.

Borough Council introduced the 2013 budget, which tops $10.2 million. A budget hearing is scheduled for 8 p.m. July 1.

While the 2012 budget for Manasquan was $8.8 million, the damage done to ratables, court fees, beach revenue and infrastructure from Hurricane Sandy coupled with increasing health care costs for borough employees calls for an increase to 2013’s budget, officials said.

In the budget introduced this week, taxes will increase 1.1 cents over 2012, when the tax rate was 36.3 cents per $100 of assessed property.

The increase amounts to $52 more in annual taxes for the average taxpayer, said Manasquan Business Administrator Joe DeIorio.

DeIorio explained how Hurricane Sandy is affecting revenue as well as spending in Manasquan. The borough has continued expenses for rebuilding, and while Manasquan expects 75 percent reimbursement from FEMA for those projects, they still account for budget spending. For example, the payroll grew to include additional hours and staff to handle rebuilding permits.

On the revenue side, Hurricane Sandy is shrinking the revenue of the beach utility by as much as 30 percent for the sale of beach badges and other revenue. Municipal court fee revenue was also predicted to shrink 30 percent, DeIorio said. Rent from the Sea Watch, destroyed in the storm, has to be recouped, and the ratable base is hit hard. With damage and demolition from Hurricane Sandy, the average assessment in Manasquan is dropping to $473,400.

However the borough has added in revenue from a disaster loan, which will help offset tax payer burden, officials said. The Community Disaster Loan Program gave $2.769 million to Manasquan to use over three years, and $1.542 million of that will go into the 2013 budget.

When faced with the calculation of as much as $300 in increased taxes for homeowners versus cutting discretionary spending, the borough decided to instead slash discretionary spending, DeIorio said. He said the budget process, which normally concludes in March, instead dragged into May as officials awaited approval and also spent additional weeks calculating predicted expenses and revenues.

“This is going to be a very telling year for all of us,” he said.

The full budget statement will be available after June 13 publication, copies of the budget can be reviewed at borough hall, and the budget presentation will be posted on the borough website shortly, DeIorio said.

The budget hearing is 8 p.m. July 1 in borough hall.