By Barbara A. Preston | Posted March 13, 2025
Montgomery Township CFO Michael W. Pitts Jr. gave a grim introduction to the 2025 municipal budget at the committee meeting on Feb. 20. “This is honestly going to be the toughest start to a budget in my 11 years with the township ... because of the inflation we are seeing,” he said.
Michael Pitts, Jr., Montgomery Township Chief Financial Officer, Tax Collector, and Purchasing Agent
He cited the following: The cost of employee heath care benefits is up by 18%, about $400,000 just off the bat. “We haven’t ever seen this type of increase,” he said. “But now all health insurance funds are seeing this.” Liability insurance has increased by 6%, adding about $50,000. Police pensions increased 10.2%, that’s another $133,000. “Electricity costs are going to go up by at least 15%.
Also, our debt is going up about 3%. “That’s all a $750,000 increase over last year’s budget —just on these items alone,” Pitts said. “These look like huge numbers, which they are.” “This does not take into consideration all of municipal salaries and expenses, all of our utilities going up and professional services ... all going up.”
Inflation is soaring in health insurance, police pensions, and electricity. This will impact the 2025 municipal budget.
To put that into perspective, last year’s total budget increased $832,000. Pitts said Montgomery officials are going to do their best to “make sure township operations can continue, while at the same time not impacting the residents [financially] based on the impact of these numbers.” “It’s a very trying year,” Pitts said.
“Whether you are in the public sector or the private sector, everybody is facing these costs. “We are going to work through it, make sure we have the right financial plan, and be fiscally responsible to the residents and to township operations.” The budget and finance committee will continue meeting through March. The budget introduction will be in April. The budget public hearing and adoption will be in May.
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The Somerset County Office of Volunteer Services is teaming up with AARP to offer free tax-counseling services for older adults, residents with disabilities, and lower-income residents. Appointments will be available in Montgomery Township at the Otto Kauffman Community Center. To register, call the county office at 908.541.5710.
New in 2025 — New Jersey residents 65 or older, or disabled who receive benefits through Social Security, may apply for the Senior Freeze, Anchor, and the Stay NJ programs in one application (Form PAS-1). The form is available online at www.nj.gov/treasury/taxation/ relief.shtml. Or call Senior Freeze at 800.882.6597 for more information. “For seniors, this can offer huge relief,” Pitts said. “For those who qualify, it is a great property tax relief program.”
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