Town eyes tax hike

Under the proposed budget, residents owning a home with the average township assement of $225,000 would pay $1,912.50 in municipal taxes.

By: Jessica Beym
   Increases in the cost of public safety, professional services, utilities and state-mandated spending for the Cranbury Public Library could result in a 10.3 percent increase in municipal taxes for 2006.
   The Township Committee met Monday to discuss the proposed spending plan, which is slated to carry a municipal tax rate of 85 cents per $100 of assessed valuation, an 8-cent increase from 2005.
   Under the proposed tax rate, the owner of a house assessed at the township average of $225,000 would pay $1,912.50 in municipal taxes, a $180 increase from the 2005 average of $1,732.50.
   Township officials said they would not announce more details about the budget numbers until the proposed spending plan is introduced on Feb. 13. Township Administrator Tom Witt said residents would be provided with a detailed breakdown of the budget at that time.
   However, committee members did discuss the tax-rate impact several departments would have on the tax rate.
   A public hearing is scheduled for March 13.
   Increases in state-mandated funding for the Cranbury Public Library could mean the township will have to pay $97,500 more than last year’s $365,000 appropriation. Committeeman David Stout said the increase, which is required by the state and is based on ratable growth in the township, accounts for 1.5 cents of the increase.
   "Taxes are a series of levers. You pull down on one, you push up on another," said Mr. Stout. "It’s a lever that, as a municipality, we don’t have control."
   Mayor Tom Panconi said representatives from the library would provide a list of how the money from last’s year budget was spent, and how they plan to spend money this year.
   "In their long-term plan, I think they’re considering their own free-standing building, but the money isn’t for bricks and mortar," said Mayor Tom Panconi.
   In addition, the cost of funding public safety — police, fire and first aid — is expected to represent 2.5 cents of the increase. Mayor Panconi said the 2006 budget does not include the Fire Department’s request for a new pumper/rescue truck expected to cost $550,000.
   Mayor Panconi said that increasing fuel costs are expected to account for approximately 2 cents of the increase.
   Cranbury is also expected to pay more for professional services as the Planning Board continues to work on updating the township’s Master Plan.
   Over the next five years, Mayor Panconi said Cranbury can expect 1 cent of the tax rate to go toward paying for the revaluation.
   In addition, there are certain areas where spending has been cut, such as administrative services which are expected to go down by a penny, Mayor Panconi said.
   "However we can reduce, that’s what we’re trying to do," said Mayor Panconi. "We try to do a little bit at a time. The big thing for this year is trying to get the Barclay property to close, so once we move forward it will help pay down debt."
   The current debt is currently slightly than $30 million, but is expected to go down when the township receives $2.7 million from the state for preserving the Simonson and E. Barclay farms.
   Mayor Panconi said the township owes approximately $800,000 on the Barclay property and the township is hoping the land will sell for approximately $1.9 million. Mayor Panconi said the remaining $1.1 million would be placed into surplus.