Cost of BOND	Cost of EXPANSION
$22,000,000 To Purchase Land Around Airport & Stop Jets	$30,000,000 In Capital Costs & $24,000,000 In Services Over 20 Years To Provide Services To A Jetport!!!
$60/year	$308/year

Impact Of Airport Expansion On Your Taxes

Sound unlikely?  Considering that airport expansion will result in $30,000,000 in additional capital costs and $1,200,000 in annual expenses as documented below, the impact on a house assessed at $400,000 is estimated at $308/year of increased taxes.  Compare this to the town’s estimate of $60/year for the bond to fund acquisition of the open space surrounding the airport:

 

 

How did we arrive at these figures?  Read on…

 

Increased Capital Costs Impact On Your Taxes

 

Assuming the town bonds for the $30,000,000 in capital costs documented below, the impact on the tax rate for a house assessed at $400,000 is as follows:

 

Payments on a $30,000,000 bond (20 years, 1 pmt/yr at 5%):            $2,407,279.5/year

 

In Readington, every $280,000 in annual expenditure results in a penny increase in the tax rate per hundred dollars of valuation, so divide the annual payment by $280,000 to obtain 8.597, which rounded amounts to $.085 per hundred dollars of assessed valuation.

 

For a house assessed at $400,000, this translates into $340.00/year in increased taxes:

 

($400,000 / $100) * .085 = $340.00/year

 

Increased Expenses Impact On Your Taxes

 

For the $1,200,000 in increased annual costs required by additional fire, police, and ambulance services documented below, the impact on the tax rate for a house assessed at $400,000 is as follows:

 

In Readington, every $280,000 in annual expenditure results in a penny increase in the tax rate per hundred dollars of valuation, so divide $1,200,000 by $280,000 to obtain $.043 per hundred dollars of valuation.

 

For a house assessed at $400,000, this translates into $172/year of increased taxes:

 

($400,000 / $100) * .043 = $172.00/year

 

 

Total Impact On Your Taxes

 

Capital Costs/Year            $340.00

Expense/Year               $172.00

Total/Year:                   $512.00  (On Home Assessed At $400,000)

 

In Readington, homeowners pay for approximately 60% of the annual municipal budget through their property taxes.  Other revenue sources (state aid, fees, fines) pay for the remaining 40% of the budget.

 

So, to keep our calculations conservative, we assume that state aid and other revenue sources will pay for 40% of the increase in expenditures caused by airport expansion:

 

Total/Year                    $512.00

Less 40%                     $204.00

Impact On

  Homeowner:               $308.00/year  (On Home Assessed At $400,000)

 

 

How did we come up with an estimate of $30,000,000 in increased capital costs and $1,200,000 per year in increased expenses that will be caused by airport expansion?  Please continue reading…

 

Airport Expansion Capital Costs To Readington Township

Road Upgrades

 

A major jetport expansion will require upgrade of Solberg, Pulaski, Lightfield, Forty Oaks, and Readington Roads to county standards to accommodate 18-wheel aviation fuel trucks and tractor-trailers servicing the 1,000,000 square feet of hangar/office/industrial space proposed by the Solbergs.  The upgrades will require widening, right-of-way acquisition via eminent domain from residential property owners, and bridge and culvert upgrades.  Conservatively estimated cost: $25,000,000.

 

Who pays?  You do, through your property tax to the town and county.

 

Sewer Extension

 

In negotiations with the town last year, Solberg Aviation proposed 1,000,000 square feet of hangar/office/warehouse space. 

 

You can’t build a major jetport and industrial park like this on septic – you need sewer, which requires an expansion of the Whitehouse Station municipal sewage treatment plant and extension of the sewer system to the airport.  Conservatively estimated cost: $5,000,000. 

 

Who pays?  You do, through your municipal taxes.

Total Capital Costs Of Airport Expansion To Residents (Roads & Sewer):  $30,000,000

 

Airport Expansion Annual Expenses To Readington Township

 

Consider the following annual expenses Readington Township will incur as a result of airport expansion:

 

Police Services

 

A major jetport will require additional police services from Readington Township, estimated conservatively at 1 additional patrolman per shift at $100,000 per year each including salary and benefits, for a total of $300,000 per year – forever. 

 

This estimate doesn’t include the cost of police cars, which cost approximately $50,000 fitted out, and which have to be replaced every 5 years.

 

Who pays?  You do, through your municipal taxes.

 

Fire Services

 

A major jetport will require at least two additional fire trucks capable of spreading foam, and will likely require a full-time fire crew stationed at the airport, supplemented by volunteers.   The increased costs to Readington Township is conservatively estimated at 6 additional full-time positions at $100,000 per year each including salary and benefits, for a total of $600,000 per year – forever.

 

This estimate doesn’t include the cost of the trucks themselves, which cost approximately $500,000 each.

 

Who pays?  You do, through your municipal taxes.

 

Rescue/Ambulance Services

 

A major jetport will require full-time rescue/ambulance personnel supplemented by volunteers, conservatively estimated at 3 positions at $100,000 per year each salary plus benefits, for a total of $300,000 per year – forever.

 

This estimate doesn’t include the cost of additional trucks, estimated at $50,000 each.

 

Who pays?  You do, through your municipal taxes.

 

Total Annual Expenses Resulting From Airport Expansion:  $1,200,000