Plainsboro’s municipal tax increase will not be as bad as it originally appeared to be. On March 21, the township held a special budget meeting to improve on the spending package that initially called for an 8.9 cent hike in the town’s tax rate. ##M:[more]##
The budget was cut to $19,”242,”795 and expected revenues were increased to bring the tax rate increase to 6.8 cents per $100 of assessed value. The total tax rate, if the current budget is approved, will be $0.30 per $100.
The townships budget increased only 2.39 percent from last year, but the nearly 20 percent rise in the tax rate is a result of a loss of revenue in 2007 due to less construction fees, municipal fines, and hotel tax being collected. The township also sold a $600,”000 liquor license in 2006.
State law requires that townships do not anticipate higher revenues than they earned in the previous year. Plainsboro will apply for an exception that, if approved, would allow the township to claim $50,”000 more in hotel tax revenue and $20,”000 more in billing by the rescue squad.
Spending was cut by $115,”000. According to Sheehan, the cuts were made mainly from the legal budget. He said aside from required increases in health insurance ($232,”000) and pension ($191,”000) benefits, the townships spending is lower than last year. “This is a very lean budget,” said Sheehan.
