Tax increase put at 2.8 cents per $100 valuation
By: Jake Uitti
PLAINSBORO The Township Committee on Wednesday unanimously adopted an $18.8 million municipal budget for 2006.
The budget represents a 3.4-percent increase over last year’s budget, and it brings with it a tax-rate increase of 2.8 cents per $100 of assessed value.
The budget carries a total tax rate of 23.4 cents per $100 of assessed value, compared to the 2005 tax rate of 20.6 cents per $100.
The owner of an average home in Plainsboro, which is assessed at $405,000, will pay about $947 in municipal taxes, compared to $834 in 2005.
Township Mayor Peter Cantu said he was pleased with the approved budget, especially since township officials were able to decrease the total compared to a budget proposal earlier in the year. The original proposed budget would have increased the tax rate by 3.5 cents.
"I am pleased we could keep the tax rate low. Overall, the budget is one that provides for the community’s needs," the mayor said.
About $3.4 million of the budget comes from the township’s surplus and about $8.6 million is coming from property taxes.
Employee benefits, pensions and utility costs are driving the increase, according to township officials. To compensate for those increases, the administration said it took cost-containment initiatives, such as developing partnerships with other municipalities, cutting operating expenses where possible, monitoring salary ranges and requiring employee participation in paying for health benefits.
The cost increases are partially offset by increased revenues in 2005 from hotel taxes, the municipal courts and other investments, officials said.
To help the budget, the Township Committee on Wednesday approved the sale of a liquor license, awarding the license to the successful and only bidder, MAE Wines Inc., for $605,000, pending a routine background check.
Of that amount, $500,000 is being put toward this year’s municipal budget, Township Administrator Robert Sheehan said.
"I think that the budget reflects the Township Committee’s priority of carefully managing the tax rate and providing tax stability for the community, which has been a goal of theirs for many years," Mr. Sheehan said. "The budget also reflects our effort to efficiently contain expenses."
One major project being undertaken this year is designing a new library. The new public library is planned as an anchor of the Village Center development across from the Plainsboro Shopping Center. Fundraising is under way.

