Ewing gets waiver on budget cap

Thursday, April 10, 2008

BY LISA CORYELL

EWING -- The township yesterday received state permission to exceed its levy cap by
$2.1 million, paving the way for the adoption of a $48.8 million budget that will raise the
local tax rate 18 cents.

A public hearing on the 2007-2008 fiscal year budget will be held tonight at 7.

After months of discussions with township administrators, the state Local Finance Board
agreed to the cap waiver, which Ewing officials said is necessary to cover the cost of
running the government.

Without the waiver, the township would have had to keep its budget under $46.7 million
as dictated by state laws governing tax increases.

"We had two choices -- cut jobs and services or ask for this cap waiver," said Bert
Steinmann, council president.

The additional $2.1 million in expenditures translates to an additional 11 cents on the tax
rate.

The township also received approvals yesterday to exceed the state-imposed

appropriations cap by $1.1 million. That money will come from surplus funds and will not
affect the tax rate this year.

"It's a great feeling to have worked with the council, the mayor and representatives of the
state Department of Community Affairs to work through Ewing's financial troubles and
come out with a budget we can all live with," said John Barrett, township financial officer.

Early last year township administrators warned that lost revenues, coupled with
unanticipated expenses, had created a budget shortfall that could spark a 43-cent
increase in the municipal tax rate.

Budget cuts, additional state aid and unanticipated tax revenues allowed the township to
whittle down the increase.

"Am I happy with 18 cents? No, I wish it could be less," said Mayor Jack Ball. "But now I
think we've gotten our house in fiscal order and we can move forward in as austere a
manner as possible."

If Ewing adopts the spending plan tonight, the local tax rate will increase 18 cents to 92
cents per $100 of assessed value.

That means the owners of a house assessed at the township average of $127,100 would
pay $228.78 more during this fiscal year, which ends on July 1. The owner of a house
assessed at the township average now pays $940.54 a year in municipal taxes.