Budget & Taxes
Each year the Green Brook Township Committee adopts a municipal budget.
As with many budgets, the Township comes up with an estimate of what we will need to spend to efficiently operate the township, and then come up with the money to accomplish that. Many of the expenditure assumptions are based on what is experienced in the prior year, which are then modified.
The other side of the equation is the revenue sources to match up with what is spent. The main source of revenue for New Jersey municipalities is property taxes. A second source is aid received from the state. Other sources are fees that are collected for township services such as building permits and court fines. The final source is from surplus that remains from prior operations.
As part of the budget process, the state has two cap limitations that must be met. Each has its own parameters and own exceptions, which make it sometime difficult to understand. Therefore, if a shortfall exists in reaching either of these caps, it may not simply be a dollar for dollar reduction needed to get to the end result, due to the exceptions and the impact that they have on the equations.
The first cap is an appropriation cap. In general terms, the budget cannot increase by more than 3 ½ %, with certain exclusions applying. Exceptions include the cost of capital projects, debt service, and interlocal services so actual increase can be more than 3 ½ %.
The second cap that the Township must meet is a levy cap. This cap requires the amount that is raised by taxation cannot exceed 2% of the prior years amount, again with certain restrictions. Capital expenditures are again excluded, as well as increases over a certain percentage in health benefits.
Please see the Document Library under Reports - Finance Department for copies of our recent budgets, audits and budget presentations.