LINWOOD — Property owners in Linwood will see their taxes increase this year after budgets were finalized for the city, local and regional schools and county.
Combined, the tax rate is set to rise 4.6 cents per $100 of assessed value, or $46 for every $100,000. The owner of a home assessed at the average, $298,232, would see an increase of about $138.
City Council adopted its budget April 26. The $14,036,554 spending plan is up $464,537 over 2022, an increase of 3.4 percent, and calls for a 3-cent tax rate increase to 97.6 cents per $100. That amounts to an increase of $30 on each $100,000 of assessed value, or nearly $90 on an average assessed home.
Mayor Darren Matik said March 22 during its introduction that the budget was being driven entirely by an increase in the state’s employee health benefits plan.
According to a presentation by City Councilman Matt Levinson, group health insurance costs are up $243,687, statutory costs including pensions up $134,273 and shared service expenses up $51,589.
Helping to offset the tax increase is a steady rise in ratables. The city’s taxable base was $930,606,100 in 2022 and is at $934,385,300 for 2023, an increase of $3,779,200. Levinson said that was due to fewer successful tax appeals and an increase in real estate values.
A strong tax collection rate has helped the city. It was 98.77 percent in 2020, rising to 99.04 percent in 2021 and falling slightly to 98.98 percent in 2022. That is significant because the city must fund the school district and pay the county at 100 percent regardless of how much it collects.
As is the case in most municipalities, the school budget makes up the largest portion of a tax bill. In Linwood’s case, it is 39 percent. The regional school tax makes up another 20 percent of the bill while the municipal tax makes up 26 percent and the county tax 13 percent. School debt and the library tax make up 1 percent apiece.
Local school budget
The Linwood Board of Education adopted its budget the same evening. The $17,009,535 spending plan for 2023-24 increases the tax rate 2.2 cents to $1.44 per $100 of assessed value, driven largely by a 15 percent increase in the state health benefits plan. That translates into a $22 increase on every $100,000 of assessed value or about $66 on the average assessment.
The budget includes a tax levy increase of $261,640, or 2 percent, to $13,343,638.
This year the district’s aid increased $142,000. In addition, it received an enrollment adjustment of $600,000 for full-day kindergarten. That funding is not included in this year’s budget but will become banked cap for future years.
According to the school budget presentation, implementation of the Student Funding Reform Act of 2018 has contributed to the cumulative loss of $537,275 since 2016-17.
Debt service from prior capital projects includes a principal payment of $180,000 and interest of $55,500 for a $235,500 impact on the tax levy. The district had to take on $2.56 million of debt from the city when it transitioned from an appointed board to an elected board in 2019. The final bond payments is expected in 2030.
According to the presentation, the increase in health benefits amounts to about $270,000. It stated a double-digit increase is anticipated next year as well.
Salaries and benefits make up 83 percent of the district budget, with facilities and energy accounting for 6 percent, supplies and services 6 percent, tuition and transportation 3 percent and insurance 2 percent.
Other taxes
Mainland Regional High School adopted its budget March 27 calling for a 1.6-cent rate increase to 73.4 cents per $100 in Linwood, amounting to about $16 on each $100,000 of assessed value, or nearly $48 on an average assessed home.
That’s a total increase for Linwood, not including the Atlantic County tax, of 6.8 cents, or about $204 on an average assessed home.
However, the Atlantic County Board of Commissioners adopted its $256 million budget April 18 that includes a 2.2-cent decrease in the general purpose tax rate.
The tax rate will fall from 46 cents to 43.8 cents per $100. That means the owner of a house assessed at $300,000 would pay about $1,314 for basic county services, down about $66 from last year.
By CRAIG D. SCHENCK/Sentinel staff