Lakewood Faces Soaring Taxes Despite Revenue

 Where Did All the Tax Money Go?

Lakewood Township officials have long claimed that the silver lining to overdevelopment is increased tax revenue supposedly helping to stabilize or even lower property taxes. But that narrative is quickly unraveling.

Homeowners are now facing a 12% municipal tax increase as the township introduces its new budget next month. According to the Asbury Park Press, the Township says it must hire 55 new employees, including 15 police officers and 27 public works staff, to keep up with the demands of a rapidly growing population.

And this isn’t the first hit. In 2024, property taxes jumped by $8 million, even as officials handed out $6 million in tax abatements to select developers. At the same time, township politicians gave themselves pay raises all while the average resident is left footing an ever growing bill.

The municipal budget has ballooned by $20 million, driven largely by population growth that is putting unprecedented pressure on essential services like policing, sanitation, and infrastructure. Public works, in particular, has become one of the most overburdened departments. The township now runs a 24-hour public works schedule, with employees working three shifts a day, including weekends, just to keep up with garbage collection, recycling, pothole repairs, snow removal, and road maintenance.

“You can’t keep up with the amount of work,” said Township Manager Patrick Donnelly. “Public works is trash and recycling it’s more and more. It's more potholes and roadwork. Police are handling more calls and events. Private schools are growing, and there’s demand for that too.” He added, “Salaries and wages always go up because the population continues to grow and that will continue.”

Meanwhile, Mayor Ray Coles pointed the finger at President Donald Trump, blaming a $14 million loss in federal and state grants, including $6 million in reduced federal aid, as a key contributor to the township’s financial strain.

But many residents are asking a more pressing question: With thousands of new homes built and supposedly generating new tax revenue, where is all that money going? In recent years, there was even a budget surplus. So how did we arrive at a point where another steep tax hike is necessary?

Here’s what the new municipal tax hike will cost homeowners:

$287.70 for a home assessed at $350,000

$328.80 for a $400,000 home

$411.00 for a $500,000 home

$616.50 for a $750,000 home

And that’s just the municipal portion. The Board of Education has also raised taxes adding approximately $120 for a $500,000 home.

Even fire taxes are climbing. The Lakewood Fire District adopted a $14.4 million budget for 2025, up $2.1 million from 2024, to fund four new firefighters—despite not yet releasing average tax impact figures.

With these increases, many residents are left wondering:

Is there any real mandate requiring the township to hire 55 new employees, buy new fire trucks, and dramatically expand payrolls all while ordinary taxpayers are squeezed and developers continue to profit?

The question stands: Who’s really benefiting from Lakewood’s rapid growth and who’s paying for it?

Is There Anything Residents Can Do?

Unfortunately, meaningful public input has become nearly impossible.

Since COVID, the Lakewood Township Committee has continued to avoid face-to-face engagement with the public, opting instead for Zoom-only meetings. These meetings are often brief, difficult to access, and offer little opportunity for real interaction. Unless you’re tech-savvy and able to log in during the 10-minute window, your voice is effectively shut out. 

The Committee claims the public can submit comments at the upcoming budget hearing, but many residents believe it's a mere formality. The decision to raise taxes appears predetermined. After the vote, officials will head off for summer break while taxpayers are left to deal with the consequences. The sense among many is that residents are being silenced, ignored, and overtaxed, while developers benefit and local politicians collect raises and avoid accountability.