(BORDENTOWN CITY) — The Bordentown City Board of Commissioners today approved a resolution at their public work session to help alleviate any confusion ahead of Election Day by confirming the proposed tax rate for the ballot question seeking voter approval to create an “Open Space, Recreation, and Historic Preservation Program.”
The binding resolution approved today clarifies that, should Bordentown City voters approve the ballot initiative, the governing body is committed to maintaining an Open Space Tax at an annual rate of between $0.01 to $0.04 (one cent to four cents).
The governing body took today’s action after the ballot question that was submitted to the County Clerk, and ultimately printed on the ballot, inaccurately listed the annual levy “at a rate from $0.1 to $0.4 cents per one hundred dollars” which erroneously translates to ten cents to forty cents, rather than the intended rate of one cent to four cents, as had been discussed at a number of public meetings.
The city had been in touch with the county over the last two weeks to identify the best solution to clear up any confusion on the part of voters while avoiding any potential legal issues.
Because New Jersey law governing the Open Space Program (N.J.S.A. 40:12-15.7) allows governing bodies to set an annual open space tax ranging from $0 to a rate approved by the electorate, “the governing body of the municipality may annually raise by taxation a sum not to exceed the amount or rate set forth in the proposition approved by the voters.”
Therefore, if voters approve the ballot question, which authorizes the governing body to adjust the Open Space tax rate annually based on the city’s needs, the rate can still be set as originally contemplated because the governing body would not be beholden to a minimum rate of ten cents, as erroneously stated on the ballot.
The Board of Commissioners approved the ballot question in July to allow voters the opportunity to decide if they would like to create a new revenue stream to help preserve historic properties, structures, and sites, and maintain and expand the inventory of recreation facilities and open space in the City of Bordentown.
Each cent of the local tax levy generates roughly $35,000 dollars in revenue for the city. If voters were to approve the creation of an Open Space Tax, and the rate was set at the maximum of four cents — for example — it would generate roughly $140,000 in revenue for the year that would be exclusively dedicated for open space, recreation, or historic preservation needs.
The city could also leverage the revenue generated from the Open Space Tax to go after much larger state or federal grants for these purposes, which often require a funding match from municipalities.
For context, this year the city’s annual property tax levy increased by just over four cents. For the average homeowner, with a home assessed at roughly $205,000, that translated into an annual increase of roughly $107 on their local property tax bill.