Red Bank(WDEF)- A costly property tax mistake is hitting the City of Red Bank’s budget hard.
City officials say the error stems from this year’s countywide property reappraisal. The city’s certified tax rate was miscalculated — set at 89 cents per $100 of assessed value instead of the correct $1 rate.
That 11-cent difference cost the city nearly $914,000 in lost revenue.
“It was a $914,000 mistake that’s going to impact the City of Red Bank significantly in our current year,” said City Manager Martin Granum. “Unfortunately, our auditor discovered it was incorrect.”
Granum says while essential city services are not immediately affected, the loss will delay future projects and limit the city’s ability to invest in community programs.
“It’s a loss of revenue that’s impossible to replace over time,” Granum said. “We’ll have to delay or defer projects down the road while we collect the revenue necessary to undertake those larger efforts.”
Red Bank leaders are now reviewing the city’s financial outlook and working with county officials to ensure similar errors don’t happen again.
