By Kristine Snodgrass, Staff Writer
PLAINSBORO — Counting on assistance from the state’s pension deferral program, the township administration has reined in the anticipated tax impact of its 2009 budget.
At the Township Committee meeting Tuesday night, Township Administrator Bob Sheehan said the municipal tax rate is now proposed to increase by 1.9 cents per $100 of assessed value, which is .1 cents higher than last year’s approved increase.
Mr. Sheehan presented to the committee last month a preliminary 2009 budget that called for an increase of 3.2 cents per $100 of assessed value. In response, the committee asked him to see what he could do to reduce the tax impact on residents, he said.
”They went back and said, like they often do, see what else you can do to bring that number down further,” Mr. Sheehan said.
The new figures would bring the total municipal tax rate to 33.5 cents per $100 of assessed value. For the average assessed home, valued at $395,000, this would translate into a $75 increase.
Mayor Pete Cantu said the reduction was done “responsibly,” avoiding an impact on municipal employees, in order to reduce the tax impact on residents.
Though the budget size remains about the same, Mr. Sheehan said, at roughly $22 million, the tax impact was reduced through a reworking of anticipated revenues.
”The first time around, we were conservative in how we anticipated revenues,” he said.
On the expense side, additional savings were found in the budget for health care and Social Security costs, as well as for note payments, he said.
The tax rate assumes the township is approved for participation in the pension deferral program, which would save the township nearly $550,000, or 1.5 cents in the municipal tax rate, Mr. Sheehan said.
At the meeting, the committee approved the resolution required to take advantage of the program, which explained the township’s inability to meet the state-mandated levy cap.
The program, signed into law by the governor last month, allows towns and counties to defer half of their required payments into the public employees’ pension fund. The deferred amount would be paid back over 15 years with interest.
The State Department of Community Affairs’ Local Finance Board must approve the application. The township is scheduled to appear before the board May 13.
If the township is not approved, the administration will have to re-examine the budget to get under the cap, Mr. Sheehan said.
The budget is scheduled to be introduced at the committee’s April 22 meeting.
Also at the meeting, the committee approved a tax appeal settlement with Barclay Square at Princeton Forrestal, a 200-unit apartment complex. Township Attorney Mike Herbert said the settlement will result in an additional $162,400 in tax revenue for 2008 and $177,000 per year from 2009.
The committee also awarded contracts related to the new Plainsboro Library.
The township received nine bids for telecommunications wiring and awarded the contract to Network Cabling, of Jackson, with a bid of $84,873. For audio-visual equipment, the township received six bids and awarded the contract to AVS Installations at $39,434. Out of six bids, contracts for a security system were awarded to Advanced Video Surveillance for a total of $82,593.75.

