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Rutherford introduces a 6.85 percent tax increase
(by Daniel O'Keefe - March 05, 2008)
The mayor and council unanimously approved a preliminary budget with a 6.85 percent increase in municipal taxes for the average homeowner last week. A homeowner with a house assessed at $449,333, the borough average, can expect an increase of $198 in this year’s tax bill, bringing the total municipal bill from $2,885 in 2007 to $3,082 in 2008. Officials claimed the increase would shrink before the budget is eventually adopted in the summer.
Overall, the tax levy increased by 6.89 percent, a $1,264,914 increase over last year’s $18,349,278. The levy makes up a larger chunk of the budget than last year: 74.9 percent of the borough’s total budget for 2008 is covered by the levy. In 2007, the levy made up 71.4 percent of the budget. However, the percentage of the budget made up by the levy dropped last year in between introduction in March and adoption in August. In March 2007, the levy was expected to constitute 76.5 percent of expenses.
The total budget comes in at $26,189,397, a $486,795, or 1.89 percent, increase on last year’s $25,702,602.
According to borough chief financial officer Ed Cortright, Rutherford’s total assessed value dropped by $20 million from $2.881 billion in 2007 to $2.861 billion in 2008. The $20 million decrease is due to settlements in property assessment appeals.
For more information, see the March 12 edition of the South Bergenite.
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