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Preliminary Egg Harbor City budget calls for nearly 13 cent tax rate increase

Preliminary Egg Harbor City budget calls for nearly 13 cent tax rate increase

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EGG HARBOR CITY — City Council on Thursday introduced a $6 million budget for 2021 that would mean a 12.8-cent increase in the municipal property tax rate.

If there are no changes in subsequent meetings, residents can expect an increase that equates to $149.05 for a home assessed at the median value of $116,450.

Chief Financial Officer Jodi Kahn said the city expects a decrease in revenue of nearly $210,000 this year from last year, while appropriations are expected to increase by about $200,000.

Appropriations are increased by $80,000 for the Police Department, $44,000 for the court, $24,000 for solid waste disposal and $43,000 for the pension fund.

Kahn said the municipal tax rate would increase from $2.299 per $100 of assessed property value to $2.427. That does not include changes in the county and local and regional school district tax rates. The total proposed municipal budget for the year is $6,041,521.

She added another factor for the tax increase was a slight decrease in the tax collection rate last year. That resulted in an increase in the reserve for uncollected taxes of $19,000 to a total of $269,818.

Kahn said $303,050 is included in the budget to pay off existing debt. That is a decrease from last year’s total of principal and interest of $409,050.

The budget discussion will continue at the March 25 council meeting, starting at 6 p.m.

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