Taxes seen increasing about 10 percent.
By: Rachel Silverman
Princeton Township revealed its preliminary budget Monday night, with Township Committee members approving the introduction of a $29.8 million spending plan for 2005.
The vote for introduction was 4-0, with Committeeman Bill Hearon absent.
This year’s total proposed spending is $400,000 less than last year’s $30.2 million township budget.
If approved, the 2005 budget would raise the tax rate in the township to 68.5 cents per $100 of assessed value, up from 62 cents in 2004, an increase of about 10 percent, despite the reduced total spending.
If the budget is approved as introduced, the owner of a home assessed at the 2005 township average of $418,097 would pay $2,864 in municipal taxes, a $290 increase over last year’s total of $2,574, which is based on 2004’s average assessment of $415,172.
In a presentation Monday night, Township Administrator Jim Pascale and Chief Financial Officer Kathy Shaddow reviewed the breakdown of some of these numbers and tried to put the proposed township budget into perspective.
"The lion’s share of local tax dollars goes to school taxes," Mr. Pascale explained, looking at the overall picture of homeowner taxes. "The next largest piece of the pie goes to the county. Bringing up the rear is the municipal, which is 21 percent," he said.
"The 6½-cent increase that we have in Princeton Township is well representative of what you’ll see in some of our neighboring communities," Mr. Pascale said, as he again tried to put the township finances in context.
Within the $29.8 million budget, debt service, public safety and health and welfare constitute the largest areas of spending.
"Debt service is a big part of our budget, at 22 percent," Ms. Shaddow said. "With that going up, it’s going to be a big impact on us."
Mr. Pascale was quick to add, "Debt service is a misnomer. It’s really the capital investment we put into the infrastructure of the community. An effective government invests in the infrastructure of the community rather than try to incur these costs and put them on one year’s budget."
In addition to a substantial increase in debt service, the township is grappling with a spike in expenditures linked to utilities as well as salaries and benefits.
"We just entered a multiple-year contract with our police," Mr. Pascale explained. "We’re also ‘this close’ to a settlement with our Public Works Department," he added.
"Our utilities are also up considerably," Mr. Pascale continued. He noted that Committeeman Bill Enslin suggested the township look into solar energy as one possible way to cut down on this hefty expenditure.
Throughout the presentation, committee members and township employees alike reminded one another and the public that the proposed numbers do not represent the end of the road in terms of setting a final budget.
"We’re continuing to meet on the budget and continuing our review of appropriations," Mr. Pascale pledged. "We’ll try to rein in as many costs as we can," he added.
"It’s still a work in progress," Committeeman Bernie Miller said, as he cast his vote. "It’s still subject to considerable review."

