Princeton Township budget calls for 5.5-cent tax hike

Bill for average home to increase $238; affordable housing, energy costs push up spending

By: Kara Fitzpatrick
   The Princeton Township Committee on Monday unanimously introduced a $30.9 million spending plan for 2006 that, if approved, will drive up the tax rate by 5.5 cents per $100 of assessed value.
   The vote for the budget was 4-0, with Committeewoman Vicky Bergman absent.
   Under the proposed spending plan, the owner of a home assessed at the township average of $424,079 could expect to pay about $3,138 in municipal taxes — up $238 from last year.
   The proposed 2006 budget — which represents a $1.1 million increase from the previous budget — would see the township tax rate climb to 74 cents per $100 of assessed value, up from 68.5 cents last year.
   According to a presentation by Township Administrator Jim Pascale and Chief Financial Officer Kathy Shaddow, the spending plan was constructed with the township’s fiscal future in mind.
   Mr. Pascale said the budget was "austere" and will allow the municipality to cover current costs while adding to the township’s surplus.
   The proposed spending plan includes the use of $3.15 million of surplus, which is $365,000 less than what was used last year. If the fiscal future unfolds as expected, the township will have about $1.07 million in surplus remaining.
   Mr. Pascale said the 2006 budget was intentionally crafted with the use of less surplus to halt a downward trend. In its previous budget, the township used $3.52 million in surplus and was left with a fund balance of $831,335 as a result.
   "Budgeting is not a science, it’s an art," Mr. Pascale said. "What we attempt to do is eliminate the peaks and valleys," which, he said, is attained by setting aside a prudent amount of funds for surplus.
   The plan includes appropriations for shared services with the borough. A joint meeting will be held with borough officials next month, Mayor Phyllis Marchand said.
   According to the presentation, public safety and debt service are the highest spending areas, each requiring 18 percent of the total 2006 budget. Health and human services spending comprises about 15 percent of the total budget and funds for parks and recreation and library services represent about 12 percent of the fiscal plan. Other appropriations include: a statutory employee benefits allocation of 10 percent of the budget; an administration, finance and court allotment of 10 percent of the budget; and a 9-percent allocation to public works. Land use and other programs will garner the final 8 percent, according to the presentation.
   According to Mr. Pascale, major increases in the budget are reflected in affordable-housing spending — the budget includes $200,000 for such services — and energy costs.
   New revenues in the budget included two grants — totaling about $60,000 — for Corner House, which will be used to offset program costs.
   Township Committee members applauded the work done by Mr. Pascale and Ms. Shaddow and said the budget reflected responsible spending.
   "You’ve done a good job," Councilman Bernie Miller said, adding that he recognized the task of crafting the budget was difficult.
   Committeeman Lance Liverman also offered his thanks to members of the administration and said the budget was sensible.
   "The funds here in Princeton Township are being controlled in a fiscally sound manner," Mr. Liverman said.
   The public hearing on the budget will be held at the committee’s May 22 meeting, scheduled to begin at 7 p.m.
   In other business Monday night, the committee unanimously introduced an ordinance that would increase the sewer charge from $5.58 per 100 cubic feet of water to $5.85 per 100 cubic feet. The public hearing for that ordinance is slated for the committee’s May 8 meeting, also scheduled for 7 p.m.