PILOTs in the 2015 budget

City Council is scheduled to hold a public hearing before formal approval of the 2015 municipal budget during its regular meeting on Monday night, and here are a few more details from the 44-page document.

Park Square
Park Square

Revenue from Payment In Lieu Of Taxes (PILOT) is budgeted at $1.346 million for this year, down 8 percent from $1.425 million. The main difference is $200,000 less from the Landmark/Park Square project this year. UPDATED: Chief Financial Officer Frank Ruggiero explained in an interview after tonight’s Redevelopment Agency meeting that only $400,000 was budgeted this year but that Landmark/Park Square will made an additional payment this year to meet its final $600,000 PILOT. The project will pay full property taxes in the 2015 year.

(2015 budgeted / 2014 budgeted / 2014 realized):

  • Lower Essex St./Denholtz Management (Rahway Plaza Apartments): $460,000 / $400,000 / $469,226
  • Landmark – (Park Square): $400,000 / $600,000 / $408,624
  • Parking Authority (River Place): $170,000 / $170,000 / $170,000
  • Rosegate: $18,000 / $25,000 / $18,750
  • Housing Authority: $48,000  / – / –
  • Senior citizen housing: $250,000 / $230,000 / $282,326

By comparison, in the 2012 budget, there was $961,000 in PILOT payments, up 22 percent from $783,000 the previous year. The main differences from that 2012 were that Landmark paid $150,000 that year (compared to $400,000) and Denholtz paid $366,000 (versus $460,000).

The budget does not yet include PILOTs for recently completed projects or construction that is under way, or soon to be under way. (UPDATED: Ruggiero further explained that the two projects completed last year – the first two listed below – will pay some type of PILOT in 2015, based on pro-rated numbers extrapolated from their partial year operations in 2014):

In the “General Revenues” portion of the budget, there are a few interesting, potentially redevelopment-related, grants from the state or county:

  • NJ Wayfinding System – $75,000
  • Green the Streets – $6,466
  • Downtown Retail Study – $20,000

The $52.5 million budget is up almost 2 percent over last year’s $51.8 million. The amount to be raised by taxes is up 3.73 percent, about $1.3 million from $34.781 million to $36.07 million.

The average home in Rahway is assessed at $133,000. It can expect a projected $120 increase in the municipal portion of the tax bill. Last year’s budget projected an increase of $43, or about $11 per per quarter. The $120 hike for the average home would increase last year’s average municipal taxes of $3,191 to $3,311.

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