PARSIPPANY—The Parsippany-Troy Hills Township Council received the proposed 2025 Municipal Budget at its April 15 meeting. The budget outlines a financial plan focused on stability, growth, and maintaining essential services while responding to ongoing fiscal challenges.
Record Surplus and Tax Base Growth
This year’s budget reflects what officials describe as “unprecedented levels” of fiscal health. The Township’s surplus has soared to $11.8 million, marking a staggering 1,078% increase over 2021. Meanwhile, the tax base has grown by $75 million since 2021, with ratables increasing by over $27.5 million in the past year alone.
Maintaining Sound Financial Footing
Key indicators remain strong: tax collections top 99.4%, net debt sits at just 1.07% (well below the state’s 3.5% cap), and the diverse tax base continues to expand. This stability allows Parsippany to invest in critical services while keeping tax increases modest.
2025 Budget Highlights
- Local Tax Rate Increase: 2.22%, resulting in a $4.95 monthly increase for the average assessed home ($59.41 annually).
- Municipal Surplus: Highest in township history, enabling greater flexibility for tax relief and emergencies.
- Added Police Officers: The budget provides funding for 10 additional police officers (3 added in 2024) to support public safety initiatives.
- Continued Investment: Funding for infrastructure, technology, parks, and quality-of-life services.
Budget Pressures and Solutions
Rising costs, including the loss of state aid ($468,856), increases in healthcare premiums ($755,000), pension obligations ($144,213), and contractual expenses for trash and recycling ($394,000), have added over $1.76 million in upward pressure on the budget. Without these increases, officials note, the municipal portion of the tax rate would decrease for 2025.
To mitigate these pressures, Mayor James Barberio’s administration has emphasized:
- Growing and responsibly utilizing the surplus.
- Diversifying revenue streams through fees, licenses, and facility rentals.
- Strategic staffing adjustments and retirements to save on salaries and wages.
- Ensuring affordable housing obligations are met without overburdening taxpayers.
What Residents Receive for Their Tax Dollars
The average home assessed at $313,513 paid $2,762.50 in municipal taxes in 2024—covering police and crossing guards, garbage and recycling pickup, road maintenance, senior services, water and sewage treatment, public health, parks, and more. For 2025, the typical homeowner will pay an additional $4.95 monthly for these services.
A Prudent, Balanced Approach
The administration highlights that this budget “sets the foundation for continued improvement” while correcting the course of the past and positioning Parsippany for a strong future.
A public hearing and final budget adoption are scheduled for the May 20, 2025, council meeting. Residents must review the budget online and participate in the upcoming hearing.
For more information, visit www.parsippany.net.