By Victoria Hurley-Schubert, Staff Writer
Borough Council got its first look this week at what it is facing in the 2012 municipal budget.
The 2012 budget will be about $26,121,000, an increase of $420,000, or 1.63 percent from the 2011 budget of $25,701,000, said Sandra Webb, chief financial officer.
The increases are from costs the borough cannot control, such as insurance, debt service and benefits.
Ms. Webb plans the same use of surplus as 2011, which was the same as 2010 and 2009.
”I think that says a lot about where we are financially,” she said. “We were able to maintain no tax increase and maintain our surplus at the same level and not utilize any more. I think it’s indicative we are doing pretty well.”
The finance department is working within the state budget tax levy cap and budget cap and departmental budgets will remain flat with no increase in operating expenses.
”They need to be commended in holding the line in keeping our expenses down,” said Ms. Webb.
Revenues are anticipated based on 2011 collections, she said. She is also hoping for no reduction in state aid, which would have an impact on the budget if the figure changes.
Debt service is approximately $3.6 million, an increase of about 1 percent.
With no major equipment purchases or roadway projects, a modest capital budget is planned for 2012.
”I think for this coming year we are going to maintain status quo,” she said. “(We are) going to finish up all the projects on our plate now as we move to the consolidated Princeton.”
There is a general operating surplus of $2.8 million, according to the 2010 audit, said Ms. Webb. Of that, about $800,000 was utilized in the 2011 budget.
In the 2010 audit, capital surplus was $4.6 million and $2.2 million of that was used in 2011, said Ms. Webb.
The fund generated $900,000 during 2011 for a balance of $3.3 million.
