The 2023 municipal budget anticipates almost $3 million in revenue from Payments In Lieu Of Taxes (PILOT), an increase of almost a half-million dollars.

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City Council unanimously approved a nearly $65-million municipal budget during its regular meeting on June 12 after introducing the spending plan at its May meeting. The 2023 municipal budget is available in its entirety here.

The $2.995 million anticipated in this year’s budget is roughly 17 more than the $2.552 million budgeted in the 2022 spending plan. Much of the increase anticipated for 2023 is the result of Meridia Brownstones beginning payments as part of its 30-year PILOT. The budget anticipates $468,000 from the first phase of the Elizabeth Avenue development.

Last year’s budget realized $2.547 million in PILOT revenue, with two new projects added to the tax rolls: the first phase of The Mint ($112,532) on Monroe and Main streets, and The Gramercy ($92,089) on East Cherry and Monroe streets.

There are 13 PILOTs from developments anticipated in the 2023 municipal budget, totaling $2.725 million:

• REVA Rahway, $509,000
• Rahway Plaza Apartments, $480,000
• Meridia Brownstones, $468,000
• Senior citizen housing, $323,000
• Meridia Lafayette Village – $244,000
• Meridia Water’s Edge – $174,000
• Metro Rahway – $137,000
• Housing Authority – $116,000
• The Mint – $112,000
• The Gramercy – $92,000
• Meyers Senior Residence – $29,000
• Rosegate – $25,000
• The Willows (artist housing) – $16,000

While some projects meet or exceed the annual payments stipulated in their financial agreements (REVA Rahway, Meridia Lafayette Village), others still fall short (Metro Rahway, Meridia Water’s Edge). See a breakdown in this Excel file.

There’s also $270,000 in revenue anticipated from the 251-bed Robert Wood Johnson University Hospital-Rahway. New Jersey restored the property tax exemption for nonprofit hospitals in early 2022 but also required nonprofit facilities to make a contribution to municipalities where they operate. The contribution is roughly $3 per day for each licensed hospital bed.

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