Shrewsbury budget calls for 3.9-cent increase

BY LINDA DeNICOLA
Staff Writer

SHREWSBURY - The borough introduced its $7.4 million 2006 municipal budget last week. If approved, the tax levy would be $5,405,764, an increase of $343,762 over last year's tax levy of $5,064,002.

The tax levy reflects anticipated revenues, other than current property tax, of almost $2 million.

According to Thomas X. Seaman, the borough's chief financial officer, if the budget is approved the municipal tax rate would increase 3.9 cents, to 67.9 cents. He explained that each penny equates to $79,625 in tax revenues.

Seaman said that the increase in the spending plan reflects the loss of a grant for $198,000, as well as the normal 4 percent for salary increases; an 8 percent increase in insurance costs and pension increases of a little over $82,000.

The increases were offset by a construction code revenue increase of $54,000 and $60,000 additional interest on investments.

Seaman explained that he has been told that the county tax rate will not increase this year, but the Shrewsbury Elementary School tax rate of 79.2 cents reflects an increase of 5.4 cents and the regional high school tax rate of 42.3 cents, reflects an increase of 2.1 cents.

All together, the owner of a house assessed at $350,000 will pay an additional $394 a year, he said.

The public hearing on the spending plan will be held on June 5.