By CRAIG D. SCHENCK/Sentinel staff
LINWOOD — City Council introduced its spending plan March 24 showing a slight increase in operating budget and no increase in the municipal tax rate.
According to a presentation from Councilman Matthew Levinson, who oversees the finance department, the operating budget would increase by about $96,000 to $4.036 million and the tax rate would stay at 92.9 cents per $100 of assessed value if adopted as introduced.
Last year in Linwood, where the average home price was $298,855, the average tax bill was $10,165. The municipal part of the bill totaled $2,579 and the local school tax was $5,886. The remainder consisted of the regional school tax and county tax.
The Linwood School District budget for 2021-22 calls for a 2.7-cent increase and the Atlantic County budget is projected to increase the tax rate 1.8 cents. Mainland Regional High School’s budget includes a 0.1-cent decrease in the city’s portion of the tax rate.
The city’s total budget is $13,047,214, a decrease of $676,387.
Anticipated increases in spending this year include $52,000 for buildings and grounds, $62,204 in statutory costs such as employee pensions and $62,588 for group health insurance.
The police department’s operating budget fell by $16,349 to $131,050 while salaries and wages increased by about the same amount to $2,031,884.
The public works department’s operating budget stayed steady at $175,000 and salaries and wages increased by $11,444 to $455,781.
Operating expenses for the Linwood Fire Company remain the same at $80,500 while salaries and wages increased $11,394.
Other department costs include the clerk’s office, where the operating budget increased $27,150 to $67,350 and salaries and wages increased $2,506 to $148,160. The operating budget increase by just $75 in the tax office, where salaries and wages decreased by $1,866 to $76,554. The construction office saw an increase of $1,180 to its operating budget and $3,601 in salaries and wages.
The city’s capital budget this year is just $75,000 after spending $4.778 million in 2020.
A loss of $192,300 due to tax appeals brought the total ratable base down to $930,606,100. Tax appeals cost the city $11,446,500 in lost ratables in 2018, for a revenue loss of $366,440. In 2019, the ratable loss was $7,450,400 and revenue loss was $259,274. Last year, there were 71 successful tax appeals resulting in a loss of $4,484,400 and revenue loss of $159,465.
Conversely, the tax collection rate has steadily increased for the past three years, from 97.55 percent in 2018 to 98.76 percent in 2020.
The presentation included cost savings through a shared service agreement, including for EMS services, which the city shares with Northfield. The city paid $182,920 in 2009 and $40,500 in 2020.
The city awarded a three-year contract for the services March 24 to Inspira Health Network at no cost to either city. City Clerk Leigh Ann Napoli stated in an email that the burden of payment would fall on the patient being cared for or transported.
Linwood also has saved money by sharing dispatch services. The estimated cost of operating a solo dispatch center in 2014 was $373,616. Today, seven years later, sharing costs are only slightly higher at $376,723.
The city continues to see savings in court costs. In 2008, the city paid $180,287. In 2020, while sharing with Northfield, the cost was $142,155.
County Executive Dennis Levinson is working toward creation of a county court system based at the old courthouse in downtown Mays Landing that could reduce the cost even further.