Tax rate may rise 7 cents.
By: Gwen Runkle
WEST WINDSOR With little time to spare, the Township Council introduced a municipal budget for 2003 Monday night.
The $26.9 million budget, which represents a 6.7-percent increase over last year’s budget of $25.2 million, was introduced by a 3-2 vote.
Councilwomen Alison Miller and Jackie Alberts along with Council President Charles Morgan voted in favor of introduction, while dissenting votes were cast by Councilwomen Kristin Appelget and Rae Roeder.
The introduced budget carries a tax rate of 54 cents per $100 of assessed property value up 7 cents from the current rate of 47 cents per $100 of assessed valuation.
With the proposed rate, the owner of a home assessed at the township average of $240,860 would pay $1,300.64 in municipal taxes an increase of $168.60, or 14.9 percent, over the current year.
However, the tax rate could be changing.
The majority of council, when it voted to introduce, did so with the intention of trying to reduce the tax-rate increase from 7 cents to 6 cents.
To reduce the tax-rate increase, $157,000 must be cut from the budget.
The council cut $62,000 Monday night by eliminating a salary and wage adjustment account that could have been used to fund nonunion employee bonuses. Ms. Appelget was the lone dissenting vote in that decision.
Another $95,000 is expected to be found by cutting overtime and moving a portion of the township’s open-space debt service from the budget’s general operating fund to the township’s open-space fund.
Township administrators are expected to craft a budget amendment reflecting these changes, to be considered at the budget’s public hearing, scheduled for June 30 the last possible date the budget could be approved before the township reorganizes July 1. Only three votes would be needed to lower the tax-rate increase by a penny, according to Township Attorney Michael Herbert.
Ms. Appelget said she voted against introducing the budget, and cutting the salary and wage account, because she was uncomfortable with so many last-minute changes.
"We’ve been working on the budget for nearly six months," she said. "I felt it was irresponsible to be coming to the table with cuts without being able to look at the full ramifications of those cuts."
She also expressed concern about the large amount of surplus being used in the budget. About $3.6 million, or 96 percent, of the township’s $3.74 million surplus is being used in the budget to help keep the tax rate down.
"I fully understand the need to hold back on expenses," Ms. Appelget said. "I came up with the idea, which has been implemented, to freeze promotions and salary increases, but going to a 6-cent tax-rate increase is financially irresponsible. We’re setting ourselves up for a severe, crisis-like situation for the next budget."
The township’s chief financial officer, Joanne Louth, agreed and warned the council that the township may fall short in generating enough revenue to replenish the surplus in 2003.
"With the revenue we’ve collected so far this year, it looks like we could end up about $1 million short of what we projected," she said.
Revenues are down due to shortfalls in anticipated interest, aid and permit returns, said Township Administrator Barbara Evans. This, coupled with an increase of about $1.1 million in nondiscretionary costs, such as insurance and utilities, has necessitated the aggressive use of surplus, some members of council say.
"No one is happy with where we are with the surplus," Ms. Alberts said. "A balance of $142,000 is not a lot, but we need to use the surplus to keep the tax rate down. Without it, the tax rate could be going up by 9 or 10 cents at least."

