Shamong budget workshop outlines 2025 tax increase and limited options to cut costs

Shamong officials on Monday reviewed a draft municipal budget for 2025 that calls for a five‑cent increase in the local purpose tax — a change officials said will translate into roughly a three‑cent net increase because a two‑cent open‑space levy is sunsetting.

Robin Verso, the township's registered municipal accountant, told the Township Committee that the municipality started 2024 with about $2,229,940 in fund balance, plans to use roughly $1.27 million of surplus in the 2025 budget and expects an ending fund balance near $1.9 million. Verso said that combination of reduced reserve returns and rising costs required the proposed levy adjustment.

"The overall increase to the taxpayer is going to be 5 cents in a local purpose tax, but we're losing the two cents from the open space. So the net results are 3 cent increase," Verso said, estimating the average homeowner would pay about $95 more a year under the proposal.

Why the gap

Officials and staff identified several concrete drivers of the increase. Verso and Administrator Lisa said major pressures include an estimated $73,000 increase in health‑insurance costs, roughly $66,000 in principal on a new fire‑truck bond, about $60,000 in ambulance aid costs and a roughly $20,000 contract for street sweeping. Staff also noted a decline in construction‑code revenue and the need to advance township funds to cover multi‑phase DOT grants, which reduced reserves until reimbursement arrives.

"Most of the things you have to spend are salary and wages and health benefits," Verso said, urging the committee that appropriation lines have already been trimmed substantially and that options for additional cuts are limited.

Levy caps and future risk

Verso explained that while the township remains under New Jersey's appropriation cap, it is poised to exceed the informal 10‑cent levy threshold it has historically respected. He said the levy moved from about 9.9 cents to roughly 14.9 cents, which will subject future increases to the state's levy‑cap rules except where specific exceptions apply (capital projects, debt, health insurance, pensions).

"We just can't do it anymore," Verso said, summarizing the structural pressure on future budgets.

Open‑space fund and legal limits

Committee members discussed the township's open‑space trust, which staff said holds about $1.4 million in reserves and currently has $50,000 budgeted for maintenance this year. Several members urged more creative uses of that balance to limit tax increases; staff and Verso cautioned state law limits what an open‑space trust may fund and that repurposing the account for general operating expenses is not straightforward.

Deputy Mayor Brian Woods said staff has contacted the tax assessor to estimate any revenue a proposed solar field might generate for future budgets, but no figures were available for 2025. Members also noted that anticipated cannabis‑related receipts have not materialized.

Street sweeping and contract debate

Committee member David Diamond moved to remove the $20,000 line for the Burlington County street‑sweeping contract, saying the township's streets appear clean and the county has not provided reimbursement. Members discussed whether the town can repeal a prior contract vote, potential county or state enforcement ramifications related to stormwater obligations, and short‑term alternatives such as renting equipment or using in‑house crews.

"I would like to remove the $20,000 for the street sweeping," Diamond said.

Staff agreed to research the contract‑cancellation procedure and the possible legal or grant consequences to ensure any change would not expose the township to penalties.

Grants and timing

Verso and Lisa said a major factor depressing this year's surplus is the timing of reimbursements for DOT road grants (work described as multiple phases of the Sai Road project). Verso said when those receivables are collected the township's surplus position will improve, but processing delays at the state level have pushed receipts into a later year.

Next steps

No formal action was taken at the workshop. Staff said the budget will be introduced at the committee's June 9 meeting and — if the introduction proceeds — adoption would be considered at the July 7 meeting. Committee members informally agreed to remove funding for the street‑sweeper line while staff investigates the contract implications.

Members' comments and other items

Several members praised staff for trimming budgets and pursuing shared services. The committee also discussed stalled development prospects at the Shamong Diner property and constraints posed by Pinelands rules and by a finance review that committee members said has delayed that project. Verso noted the Pinelands Commission had tentatively approved a separate roundabout project and that the appeal period ends June 9.

The meeting ended by voice vote; the committee noted no members of the public were present and that future meetings and video recordings will be posted to YouTube.

What to watch

Staff will provide additional detail at the next meeting on (1) the feasibility and consequences of cancelling the street‑sweeper contract, (2) any available estimates for revenue from proposed solar‑field projects, and (3) timing for DOT grant reimbursements that affect year‑end surplus.