Adecline in revenues and property values in West Windsor this year will mean that township residents will have to cough up extra money to make up the difference — to the tune of a 5.8 percent tax increase.
This is despite the administration’s efforts to limit the overall budget increase to 1.71 percent — the lowest in 16 years — including a cut of three positions from the police, court, and health and human services departments as well as a reduction in overtime costs and part-time employees. The cuts, however, will not force lay-offs.
“Personnel cuts for a growing community such as West Windsor are a very difficult decision to make,” said Business Administrator Robert Hary. “These are ones that, through attrition, haven’t been filled. They are people leaving for a number of reasons, but we’ve completely taken them out of the budget and eliminated those positions.”
The $37.1 million proposed 2010 package represents an increase of $626,000 from last year’s $36.5 million budget, but the tax levy will increase from $20.6 million to $21.8 million, a 5.8 percent increase, according to figures released by Mayor Shing-Fu Hsue to Township Council on March 25.
The Council has scheduled a session for Friday, April 16, at 9:30 a.m. to begin work on the budget.
“The proposed budget and municipal tax levy in 2010 are at the state-mandated caps,” Hsueh wrote in his budget summary. “Although our proposed expenditures for 2010 have only increased by $626,000, or 1.71 percent from 2009, declining revenues have resulted in a 5.8 percent increase in the tax levy.
“Further, due to tax appeals and declining property values, the cost of a tax penny has been reduced from $621,732 to $610,086. As a result, the proposed municipal tax rate is therefore estimated to be .357 in 2010, reflecting a 2.6 cent increase from .331 in 2009,” Hsueh said.
Under the 33.1-cent rate, the owner of a home assessed at the township average of $534,782 would see an increase of $139, from $1,770 last year to $1,909 this year.
According to the proposed budget , expenditures requested by department heads in the 2010 have been reduced from $37.8 million to $37.1 million — a reduction of $701,502.
Revenues for 2010 are down considerably in the areas of interest income, which shows a decrease of $679,500; in state aid, which includes a decrease of $619,620 (a 22 percent decrease); and in hotel occupancy tax, which decreased by $85,000, although officials said that expected increases in sewer service charges and the proposed third-party billing program for the EMS services help to offset some of those losses.
Revenues include $2.2 million in state aid, $3.9 million in miscellaneous revenue, $4.4 million from the fund balance, and $2.96 million in sewer service charges, leaving a total of $21.8 million to be raised through taxation — a $1.2 million increase over last year.
The township also had to dip more into its reserves to meet the tax levy cap. “It was necessary to use an additional $200,000 in fund balance over the amount used last year,” Hsueh wrote. “This is a serious concern, given our goal of sound and efficient long-term financial management.”
Administration emphasized that despite the large cuts to various departments, the township is able to maintain township services like garbage collection, while minimizing the financial impact to residents.
“You may have read about some of our neighboring communities that have had to make deep cuts to their budgets and services just to get within the levy cap imposed by the state,” said Hsueh to the council. “Many of them do not provide the broad array of services that our residents currently receive as part of their tax bill,” like paid garbage service and absence of a fire district tax, he said. “Due to our long-term financial planning, I am proud to present a budget that is at the levy cap while at the same time maintaining our desire to continue to be a ‘full-service community.’”
The administration also emphasized that salaries and wages have only risen by $53,538 over last year — a .43 percent increase. In this area, the township cut three full-time positions funded in last year’s budget — one each in Police, Court, and Health and Human services. It also reduced department overtime appropriations and reduced part-time staff in the Public Works and Land Use and Code Enforcement departments.
“This included a decision not to hire proposed new employees in the Police and Engineering Divisions and to postpone any proposed promotions or salary adjustments,” the mayor wrote.
“This is by far the lowest increase over the past 16 years” in West Windsor, Hary said, pointing to the 3.06 percent increase in last year’s budget, which was the lowest in 15 years up to that point. “We’ve cut that increase.”
Meanwhile, the “other expenses” part of the budget has increased by $572,462, representing a 2.37 percent increase from last year. Included in that increase were fixed costs, including an additional $248,564 from Stonybrook Regional Sewage Authority; a $150,547 increase in pension contributions; and an increase of $608,704 in debt service.
The Capital Improvement Fund remained flat at $225,000 for 2010. That portion of the budget is presented as part of a six-year Capital Improvement Program, including road and sewer repairs, equipment/vehicle acquisition and replacement, and facilities/property/park improvements. The 2010 CIP totals $5.6 million and includes a $1.6 million appropriation for decommissioning the Duck Pond Run sewer pump station.
Hary said the administration has been working on the budget year-round. “It meant a lot of meetings and negotiations and discussions” to determine “how we can come to a budget the mayor thinks is a fair budget to taxpayers. At the same time, we continue to be a full-service community and a growing community. The important thing is to keep that in mind while we do our best to mitigate any tax increase. We think we’ve done that with this budget.”
Hsueh said this budget was the most challenging budget during his tenure as mayor. He offered his management team to the council “to provide more detail and to provide the necessary refinements that council thinks may be necessary prior to its introduction and adoption.”
“Further, as requested, my administration will provide council with additional information related to services, costs, and historical data and the impact of further cuts on the delivery of municipal services should council wish to reduce the budget.”
