Plainsboro officials are still waiting to hear back from the state Local Finance Board on whether it has approved the township’s request to defer its state-mandated pension costs until 2012 before they can introduce the 2009 municipal budget.##M:[more]##
During the Plainsboro Township Committee’s May 27 meeting, the committee held a public hearing on the $21.97 million budget, which includes the tax savings the township would see if the move is approved.
The budget represents a 5.7 increase over last year and is proposed to carry a tax rate increase of 1.9 cents. In the beginning of the budget process, officials had anticipated having to increase the tax rate by 3.26-cents, but had since reduced it before introduction.
The state-mandated pension costs, if not approved, would have the biggest impact on the budget. The township is due to pay a total of $545,”000 — $375,”000 into the Police and Fireman’s Retirement System and $170,”000 into the Public Employee Retirement System. Under new state law, towns were able to apply to hold off on paying the contributions until 2012, by which time, they hope, the economy will be more robust. If approved, the deferral would give the town a 1.5-cent savings.
In the area of revenues, the township used $3.27 million in surplus to offset taxes. Still, the township saw its state aid decrease by $53,”000, and a decrease in revenue from hotel taxes, which fell by $151,”000. Interest on the township’s investments is also down by $372,”000. On the other hand, housing fees are up by $69,”000.
Employee-related expenses make up 60 percent of the budget, and account for 57 percent of this year’s budget increase.
