Despite a loss of over $422,000 in revenue, West Windsor Township is planning to accommodate its growing population by proceeding with capital projects around town, mainly for roads and infrastructure. The township plans on making these improvements with a budget of $37,340,000 — $13,000 less than last year’s.
“For the first time in 20 years, through reduced staffing and increased efficiency, we are presenting a budget that it $13,000 (.03 percent) lower than last year’s budget. This is a significant achievement for any municipality, even more significant for a growing community,” says Mayor Shing-Fu Hsueh.
An initial glimpse at West Windsor’s 2012 budget was presented by Business Administrator Robert Hary at the council meeting on February 13, when council members were given binders from the administration to review.
According to the mayor’s draft of the operating budget, the $13,000 reduction came from expenditures requested by the township’s department heads, reduced from $37,387,502 in 2011 to $37,327,000 this year, a cutback of $60,502.
However the township’s salaries and wages, which represent 34 percent of the budget, will go up by $298,171 from last year despite the elimination of three full-time positions: the animal control officer, a municipal court position and one person in the clerk’s office.
The municipal tax levy, which represents approximately 15 percent of the total tax bill for each household, will go up by $409,756, from $20.9 million last year to $22.1 million this year.
According to Hsueh his proposed tax levy is only a 1.86 percent increase — $996,478 less than what is permitted by state statute. The municipal budget must be within a two percent property tax levy cap with some exclusions, such as healthcare and/or pension increases, increases in debt service and credits for new tax ratables.
“We just approved contracts with our public employees, police, fire, the CWA (Communications Workers of America). But we were able to offset those increases with reductions to other expenses, particularly in the area of healthcare and pension. We have $257,400 in healthcare and $178,000 in pensions frankly that falls on the back of our porch,” Hary said.
At the meeting Hary said the township must not only plan for this year and going forward, but plan for where West Windsor “will be at build-out.” The 2012 capital budget is six million dollars, but that amount includes $2,255,000 in fully-funded projects, leaving $3,885,000 to be bonded.
“We need to be cognizant of trying to reduce long-term debt but at the same time, as a growing community, we have to make sure we don’t put off on future generations the things that we need to purchase,” he said.
“I’ve said this before that from 2012 onwards, all administration and council should be thinking about how we are going to look at build out and how we will budget for buildings, equipment, etc. The mayor has preached long-term financial planning since he was elected,” Hary said.
Hary said he mentioned this last year but there was not much reaction from council. On February 13 he stated the need to make changes at the municipal complex and the building next to it. The post office’s lease expires at the end of 2013, and it is believed that the USPS will discontinue its operation there. The township currently receives over $11,000 a month for leasing that building.
Hary says the administration has learned from the Wallace Road sewer project to take better care of its infrastructure. Road and sewer projects are planned, and Hary also mentioned improvements needed for the Department of Public Works facility. He brought up one idea for a source of funding to council.
“Bear in mind, we are fortunate that we have $2 million from the sale of two liquor licenses. That is something I intend to have serious discussions about for one-time purchases for what we do with the municipal building and public works as we move towards build-out,” Hary said.
With infrastructure being the priority, Hary said items such as vehicles, equipment, and some West Windsor parks “will have to be put out a little further.”
Gradual tax increases are the goal for the administration. Hary said that for an average property in West Windsor valued at $523,950 the tax impact would not exceed a $50 increase.
“What you won’t notice in West Windsor are spikes — where you have no tax increase or a decrease and then the next year you get a significant tax increase, going up and down and up and down. To date we’ve been able to accomplish that,” Hary said.
