The Township Committee preliminary budget, given an initial approval Tuesday night, marks the lowest tax rate increase, about 3%, in at least 10 years, according to Mayor Vic De Luca.

"We probably could have legitimately and legally gone up to 6% or 7%," he said. "The 4% (state cap) covers certain parts of the budget and there are things outside the budget."

But the preliminary $35.6 million budget, which will be the subject of a TC budget hearing on May 5, increases the tax impact from $1.177 per $100 of assessed value to $1.212, according to Township Administrator Joseph Manning. He says that averages for a home assessed at $268,500 to $3,255, a tax increase of $96, in the municipal budget, not including school budget taxes. For a home assessed at $450,000, the taxes are raised to $5,455, a tax increase of $161 per year.

"There has never been anything like this," De Luca said about the low tax increase. "At least 10 years that there has been anything like this."

Of course, the lower tax rate increase came at the expense of 17 township employee layoffs and, for the moment, three police layoffs, although those may well not occur after Tuesday night's TC announcement of potential police grant money. The TC also cancelled the three firefighter layoffs after cutting a deal with the firefighters union for a new health benefit payment and extended contract.

The township also plans to close offices each Friday during the summer and force 12 furlough days on employees. Still, having a low tax rate increase, along with what appears to be a two-decades low school tax increase of 4.5%, eases the recession pain.

"The 3%, in this recession, the township committee feels is the most we can ask of taxpayers," TC Member Fred Profeta said.

De Luca adds that the governing body sought to keep the tax rate as low as possible now as it prepares for likely difficult financial times in coming years: "This is not one year in isolation. We have to position ourselves so we don't have the same kind of budget catastrophe for 2010. To be leaner and reduce our costs.