Plainsboro officials were able to reduce the tax impact on this year’s municipal budget to less than a penny before the Township Committee introduced the $23.15 million package on April 28.
The new budget reflects a tax rate increase of .9 cents — down from the originally projected 1.9 cent increase. Under the new rate, the owner of an average home assessed at $392,000 would see an increase of about $35 over last year’s tax bill.
Under the originally projected 1.9 cent increase, that owner would have paid $74 more in taxes last year.
A public hearing and adoption is scheduled for Wednesday, May 26.
Township Administrator Robert Sheehan said officials were able to make more cuts to the expenditures after the county got a better recycling bid. Officials were also able to see reductions in audited expenses and health insurance costs. The mayor and Township Committee made more cuts to their own budgets for next year as well, Sheehan said.
Prior to introduction, the committee and Mayor Peter Cantu had called on the staff to find further reductions in light of the economy and the large hit residents will take in school taxes, which alone reflect a 10-cent tax rate increase for Plainsboro.
With regard to 2010, revenues are down, most significantly in state aid, which dropped by $423,000, or 20 percent. State aid represents 7 percent of the township’s total revenue, down from 9.5 percent last year.
As a result, Plainsboro used $4.3 million in surplus to offset some of the impact, an amount that is higher than last year.
The largest increase in expenses was in employee costs — 60 percent of the budget. Pensions increased by $500,000, and health insurance increased by $182,000, a 7 percent increase. Some of that increase, however, was offset by the use of a one-time surplus in the township’s insurance fund, as well as the fact the township had saved some benefits costs and received some concessions in some of its negotiated agreements.
The budget continues to maintain support for the rescue squad, historical society, and the library.
The budget eliminates out-of-state travel for municipal staff. The budget also includes funds for the ongoing road maintenance program, including the reconstruction of Edgemere Road as well as the rehabilitation of the old library — at an estimated price tag of $4 million.
