Montgomery Township Committee Hears 2025 Budget Presentation at April 4th Meeting

April 12, 2025

Nicholas Mistretta

At the April 3rd Montgomery Township Committee meeting, Chief Financial Officer and Tax Collector Michael Pitts formally introduced the proposed 2025 municipal budget. Pitts began his presentation by expressing gratitude to the Budget Committee, which includes Mayor Neena Singh and Deputy Mayor Vincent Barragan, along with Township Business Administrator Lori Savron and all department heads.

Budget Breakdown and Key Figures
Pitts outlined the distribution of local property tax dollars, highlighting that the vast majority—67.5%—is allocated to the school system. Other allocations include:

13% to Somerset County
1.5% to Fire Departments
1.7% to the County Library System
1.37% to County Open Space
1% to Township Open Space
13.6% to the municipality itself

This means that approximately 15% of a local resident’s property tax bill is what goes directly to Montgomery Township operations and open space.

Four Major Cost Drivers
According to Pitts, the budget is driven by four main cost factors, which together account for $699,584 of the $755,000 increase in the tax levy:

Debt Service
Police Department
Police Pensions
Health Benefits

These non-discretionary expenses dominate the budget’s growth, leaving little flexibility elsewhere.

Modest Tax Impact for Residents
Despite these pressures, Pitts emphasized that the overall tax increase to residents is 2.89%. This equates to an increase of $69.93 for the average home, assessed at $507,400. He stressed that this figure is based on assessed value, not market value.

“This is what I would call a stagnant budget,” Pitts explained. “Outside of the costs we couldn’t control, we’ve worked to hold the line.”

Appropriation Priorities
Beyond the top cost drivers, the budget’s primary appropriations are, in order:

Salaries and wages
Annual debt service and capital
Pensions
Health insurance
Reserve for uncollected taxes
Utilities
Social security and unemployment
Vehicle maintenance
Liability insurance

Open for Questions
Pitts concluded by inviting residents to reach out with any questions. “I’m happy to explain anything at any time. This is a fair and reasonable budget designed to maintain our operations without overburdening residents.”

The public hearing and final adoption of the 2025 budget is scheduled for the May 1st Township Committee meeting.

Copies of the introduced budget will be available in the office of the Clerk at the Municipal Building, 100 Community Drive, Skillman, NJ, by appointment only, during the hours of 8:00 A.M. to 4:30 P.M. each weekday. Call (908) 359-8211 x2240

Photo Credit: Nick Mistretta/headlinenewsmontgomery.com