2023 Springfield Taxes

A significant portion, approximately 60%, of our budget is allocated to non-discretionary items that are beyond our control. Throughout the previous year, we have witnessed substantial rises in these expenses. Garbage and Disposal costs escalated by 34%, Library costs experienced a 30% increase, Recycling Collection Fees and Medical Insurance costs went up by 21%, and Workers Compensation Insurance costs rose by 20%. The amount of $458 reflects the increase in the municipal portion of the average residential assessment of residents' taxes for the year. It does not include the Library, School, County, or County Open Space portions.

The Township did have a non-budgeted sale of the Sarah Bailey building. The money from the sale was used to pay a bond debt that was owed by the Township. The bond consisted of many items, projects, and services that had already been utilized, expended, or were no longer in service after many years. These funds were allocated to retire debt with the aim of establishing a more financially stable foundation for our Township in the years ahead. Our intention was to address this obligation proactively rather than deferring it for future budgets or Township Committees.

In addition to these substantial rises in expenses beyond our control. There were many other significant challenges

Consecutive severe storms, namely Isais in 2020 and Ida in 2021, inflicted extensive damage on our town. These hurricanes resulted in flooding of residents' homes and township buildings, including Townhall, the Library, DPW buildings, the First Aid Squad, Walton School, and more. The aftermath included broken power poles, downed power lines, prolonged power outages, and a lengthy DPW cleanup effort, taking approximately six months each time to restore our streets to their normal condition.

Nearly two years of dealing with the COVID-19 pandemic placed additional strain on our First Responders, including the First Aid Squad, Police, and Fire Departments. Shortages of Personal Protective Equipment and extended periods of sickness among Township workers further exacerbated the situation. The First Aid Squad worked tirelessly and expended all available resources, both in terms of equipment and finances.

Sanitation costs have risen, prompting the Township to seek competitive bids. Unfortunately, only one company expressed interest, and other companies indicated they lacked the manpower to service our town effectively.

A state-mandated property revaluation, which the Township did not initiate, led to fluctuations in property taxes. Additionally, a substantial number of property appeals resulted in a nearly two-million-dollar loss in tax revenue from properties that successfully appealed their assessments.**BULLSEYE

The Township has been dedicated to promoting transparency regarding the possibility of an increase. We initiated the dissemination of updates to residents soon after the beginning of the year, specifically during February and April. These updates were communicated through multiple channels, including our township website, the Patriot newsletter, Facebook, email, Township meetings, TapIntoSpringfield, and public budget hearings open to the public at various times and dates.

The Township Committee has diligently explored avenues to save money in preparation for the next budget since the start of 2023. We have been working on implementing changes that we believe could result in tangible savings for our taxpayers.u2028

Examine how EVERY department runs and maximize efficiency - WITHOUT LAYOFFS: To enhance the efficiency of every department within the township, a comprehensive review of operations is essential. This review should focus on optimizing processes, streamlining workflows, and eliminating redundant tasks. It also involves embracing technology and automation where appropriate to reduce administrative overhead. Employee training and development programs can be implemented to enhance skills and productivity. The goal is to ensure that each department operates at its highest potential without resorting to layoffs, which can negatively impact both employees and service delivery.**STANDARD

Evaluate township departments' fixed costs, like insurance premiums, to look for savings: Fixed costs, such as insurance premiums, represent a significant portion of a township's budget. To identify potential savings, the township can engage in thorough negotiations with insurance providers to secure more favorable rates. Additionally, risk management strategies can be implemented to reduce insurance claims and lower premiums over time. Regularly reassessing insurance coverage to ensure it aligns with the township's needs can also lead to cost savings without compromising on protection.

Create an economic development program that runs with the BID to bring new money into the town: Collaborating with the local Business Improvement District (BID) to establish an economic development program can stimulate growth and revenue generation within the township. This program might involve incentives for businesses to invest in the community, streamlined permitting processes, and marketing efforts to attract new businesses. Attracting new businesses not only increases tax revenue but also creates job opportunities for residents, further strengthening the local economy.

Dedicate PILOT money from developments for tax relief: Payments in Lieu of Taxes (PILOT) agreements are valuable tools for municipalities to generate revenue from new developments. To provide tax relief to residents, it's crucial to allocate a portion of the PILOT payments specifically for this purpose. By earmarking PILOT funds for tax relief programs, the township can directly reduce the burden on taxpayers. These funds can be used to stabilize or even lower property taxes, making homeownership more affordable for residents and fostering community satisfaction.**BULLSEYE

Incorporating these strategies into the township's financial management approach can help ensure fiscal responsibility, promote economic growth, and enhance the quality of life for residents without resorting to layoffs or significant tax increases. It requires careful planning, collaboration, and a commitment to efficient governance.