WEST WINDSOR: Township tax rate to rise 5.4 percent

By Kristine Snodgrass, Staff Writer
   WEST WINDSOR — The average homeowner would see a $93 increase in annual township taxes under a proposed budget that is 2.7 percent larger than the current spending plan.The spending increase is the smallest in 15 years. But because of a decline in the township’s total tax base, the municipal tax rate is projected to increase 5.4 percent, or 1.7 cents per $100 of assessed value, according to Joanne Louth, the township’s chief financial officer.
   For the average homeowner, this would translate into a $93 increase for a total municipal tax bill of $1,818, she said. The average assessed township home this year is valued at $549,345.
   The administration’s 2009 proposed operating budget, which will be presented to the Township Council over several meetings, totals $36.4 million in expenditures. The municipal budget comprises about 15 percent of residents’ total tax bill, covering all municipal services including public safety, public works, community development and human services.
   More than half, $20.6 million, would be raised by taxation, an increase of nearly $1 million over last year.
   The tax levy is set to increase 5 percent over last year, according to the proposed figures. However, the township will still fall under the state property tax levy cap, Ms. Louth said, as a result of exclusions permitted by the law.
   The township’s 2009 revenue is expected to fall in several areas, including interest on investments and deposits to the amount of $336,500.
   ”The tax line is being hit because we do have shortfall in several of our big revenue sources,” she said.
   The decrease in state aid accounts for .2 cents of the tax rate increase, Ms. Louth said. The township received $2.8 million, a reduction of $113,457 from last year.
   Meanwhile, expenditures have increased in several areas, including by over $300,000 for salaries and wages of township employees.
   The township’s pension obligation, which increased by $213,765 this year, is another factor, she said. This increase accounts for .3 cents of the 1.7 cent tax increase.
   The township is not eligible to participate in recently enacted pension deferral legislation, she added.
   No additional township personnel will be funded in the budget, she said. Employee salaries, benefits and taxes comprise just over half of the budget’s expenditures. However, she said, there are no layoffs or furloughs planned for 2009.
   The proposed capital budget for 2009 is $4.6 million, a decrease of $3 million from last year, according to the proposed figures. However, the Capital Improvement Program will continue to fund the Annual Road Program, traffic safety improvements and improvements at Community Park.
   On Monday, Township Council will hold a budget work session after its normal meeting to address budget issues related to the Public Safety Department, Municipal Court, the finance division and the council/clerk’s office.
   The following Thursday, council will meet at 5 p.m. to discuss the Community Development Department. If another meeting is needed, it will be held April 13.
   A formal introduction of the budget is scheduled for May 18. A public hearing and final budget adoption is scheduled for June 22.