Property tax bills in Holmdel rose 2.9 percent in 2012 from the previous year, while the state average increase came in at 1.7 percent, according to a report in The Star Ledger.

The newspaper's analysis found that statewide average increases were the lowest since 1991 and remained under the mandatory 2 percent cap put in place by Gov. Chris Christie. 

Holmdel residents pay an average of $12,431.69 in property taxes, calculated with contributions to municipal taxes, county taxes and school taxes, according to the report. The 2012 budget in Holmdel was $21.1 million, with a municipal tax rate increase of 3.2 cents, to 34.3 cents per $100 of assessed valuation.

Neighboring towns are experiencing similar increases, although some remained under 1 percent:

• Highlands experienced a 4.4 percent increase in taxes in 2012, with an average bill of $5,990.23. 
• Matawan residents are paying .6 percent more than 2011, but at an average bill of $8,305.79.
• Middletown residents paid one percent more in 2012, with an average bill of $8,021.36.

According to The Star Ledger, Christie and local municipal officials believe Hurricane Sandy could result in unprecedented tax increases in badly damaged areas. 

A bill in the State Senate sponsored by Senate President Steve Sweeney (D) will promote shared services among municipalities, such as emergency services and public works. According to The Star Ledger, the bill would shrink government expenses. Municipalities without shared services would lose state aid.

In Manasquan, which suffered some of the worst damage from Sandy, local officials said the cost of rebuilding might drive up tax rates by at least 20 percent.