LOCH ARBOUR, N.J. (CBSNewYork/AP) — New Jersey might lose one of its 566 towns as a seashore community looks to ease property taxes.

Loch Arbour’s leaders will decide next month whether the Monmouth County village of 194 residents should seek to merge with neighboring Allenhurst.

Loch Arbour Mayor John Zazzarino told the Asbury Park Press his constituents are mostly house-rich and cash-poor.

The village has faced a tax crisis since 2008 after the Legislature decided residents had to pay school taxes based on the value of their homes instead of per pupil cost to send a small number of children to Ocean Township schools.

Taxes on the average home assessed at $1,474,000 increased from $9,172 in 2008 to $20,763 in 2010.

Loch Arbour could reduce average property taxes to $9,024 if it merges with Allenhurst.

(TM and Copyright 2011 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2011 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

Watch & Listen LIVE