Princeton Borough sees revenue shortfall

By Lauren Otis, Staff Writer
   Princeton Borough revenues for the nine-month period ended Sept. 30 were below projections, although expenditures as a whole were in line with projections, according to figures presented by the borough’s chief financial officer at a Borough Council meeting last week.
   The borough realized $15,202,708 in revenues for the nine-month period, or 60 percent of the $25,264,214 projected for the 2008 year as a whole. Borough expenditures were $18,398,596 for the same period, or 73 percent of proposed expenditures of $25,264,214 for 2008. Borough CFO Sandra Webb said revenue figures for the nine month period should be around 75 percent of the projected annual amount to be in line with budget estimates, at the meeting on Oct. 14.
   Several larger revenue items fell below projections, including payments from Princeton Township for joint services, state aid, and Princeton University’s donation to the borough.
   According to the report, the township has paid the borough none of the $1,518,523 it is owed for joint services for 2008. Proposed state aid revenues of $1,304,942 have not materialized, and Princeton University had paid $250,000 so far out of its proposed $1,092,600 donation for 2008.
   Additionally, revenue tied to anticipated utility operating surplus for the parking utility was $500,000 for the nine-month period, or 45 percent of the proposed $1.1 million for the 2008 year. Interest on investments and deposits was $186,181, or 40 percent of the $461,862 expected for the year. No realized revenue from a hotel tax was recorded of the $376,415 proposed to be generated in 2008. And Princeton Theological Seminary had not made any payment to the borough of the $211,765 annual amount expected.
   Joint finances and negotiations with Princeton Township were discussed in closed session at the Borough Council meeting but not during the open session.
   ”I’m not concerned yet, I may be in three months, but not yet,” said Borough Mayor Mildred Trotman of the revenue shortfalls, in an interview. Mayor Trotman said there were a number of “bits and pieces” of revenue that would subsequently come in. She cited the fact that the university had only paid a quarter of its agreed-upon payment to the borough for 2008. “That’s a chunk of money,” that the borough is still expecting from the university, she said.
   Mayor Trotman acknowledged that the slipping economy and upheaval in the financial markets may negatively affect the borough. “When that budget was put together no one expected that a year later that this would happen, and the worst is yet to come I believe personally,” she said. “So we just do the best we can with what we have,” she added.
   At the council meeting, Councilmen Roger Martindell and David Goldfarb questioned borough fire and housing inspection fees, which were $63,690, or 50 percent of the projected amount for 2008 of $127,115 for the nine-month period ended Sept. 30.
   Borough Administrator Robert Bruschi said that the borough had been down an inspector for several months.
   Mr. Martindell also asked why license fees other than for alcoholic beverage licenses were so low, $14,090 for the nine-month period, or 58 percent of the projected amount for 2008 of $24,100, with passport fees $11,120, or 53 percent of 2008 projections of $21,060, according to the revenue report.
   Ms. Webb said she didn’t know but many of the fees were health department matters. David Henry, health officer with the Princeton Regional Health Commission, said there had been less demand for vaccinations and other licenses and certificates probably because people were taking fewer cruises and vacations, not getting cars for their children, and other activities in the slowing economy.
   One area where nine-month borough revenues exceeded 2008 projections was in Uniform Construction Code fees, which were $640,789, or 145 percent of the $441,768 projected amount for all of 2008.