By Sean Ruppert, Staff Writer
EAST WINDSOR Township residents would see their municipal tax rate increase by 6.7 cents under the preliminary $21.4 million budget unveiled Saturday.
However, Mayor Janice Mironov said the Township Council will be reviewing the entire budget and likely reducing spending further before it is formally introduced.
No formal date had been set for the introduction but the next budget meeting is slated for April 14.
The budget calls for a tax rate of 63.6 cents per $100 of assessed value. This means the owner of a home assessed at the township average of $133,719 would pay $850 in municipal taxes, about $95 more than in 2007. The total budget increased $758,711 from 2008, when the tax rate rose by 5.7 cents.
“I think it is fair to say that this is the most stressful budget season that we’ve been through,” Mayor Mironov said Saturday.
She cited declining revenues and surplus due to the condition of the economy among the challenges in creating the budget. Last year the budget used $4.35 million out of $6.2 million in available surplus. In 2009, the budget calls for the use of $3.26 million out of $4.5 million in available surplus, according to Mayor Mironov.
The mayor said the council is not calling for any layoffs or furloughs of existing employees. However, some positions are being eliminated or combined through attrition. She said the township managed to save $500,000 through attrition and other cuts.
Among these are the elimination of four open police positions, which the mayor said will save the township about $200,000. She said the construction official and building inspector positions will be combined.
In addition, all capital programs are being frozen except for grant projects, health and safety projects and those already approved. The mayor said the township had not yet identified any potential grants it could receive through the federal stimulus bill but will continue looking.
Among the biggest increases in spending is salary and wages, which will total $9.5 million. This is an increase of $630,528 over the $8.86 million spent in 2008. Group health insurance costs will increase by $728,194 in 2009, to $3.87 million.
The township saw a reduction of $113,269 in total formula aid from the state for 2009, after seeing an approximate $300,000 reduction in 2008.
Mayor Mironov said the council has decided not to use the optional pension deferral approved by the state. The deferral program signed into law by Gov. Jon Corzine on March 18 would have allowed the township to save about $600,000 in 2009 by halving its payment into the Public Employees Retirement System and the Police and Firemen’s Retirement System for this year only. The township would have had to make up the deferred amount along with its regular pension payments over the next 15 years, with interest.
“To do that would further burden our future budgets,” Mayor Mironov said.
If East Windsor were to take the deferral, it would reduce the tax rate by about 4.26 cents, resulting in a smaller increase of about 2.5 cents per $100 of assessed value from 2008. Under this rate the owner of a home assessed at the township average would see a $39 increase in the tax bill.

