The Plainsboro Township Committee on April 14 got its first look the 2010 municipal budget — a $23.2 million package that would increase taxes by 1.9 cents.
The proposed spending plan, presented to the governing body by Township Administrator Robert Sheehan, represents a $1.2 million — or 5 percent — overall increase over last year. Under the budget, slated for introduction on Wednesday, April 28, the owner of an average assessed home at $392,000 would pay about $74 more in municipal taxes under the proposal.
Although the committee and Mayor Peter Cantu called the budget tight and responsible, they called on staff to find further reductions in light of the economy and the large hit residents will take if the school budget, which includes a 10-cent increase, is passed.
“We always issue a challenge at this time to the staff to look at ways to mitigate the tax increase,” said Cantu.
Sheehan emphasized the financial practices the township has had in place over the past few years to keep costs down, including entering into a shared court services agreement with Cranbury, participating in insurance and joint purchasing pools, and entering into a shared services agreement with West Windsor for animal control services.
“We pursued shared services long before it became fashionable,” he said. Also, since 2004, there have been 10 full-time and two part-time positions eliminated, representing 10 percent of the township’s staff.
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.
“Reflective of the overall economic environment, some of the key revenue areas have fallen,” Sheehan said. Interest on investments, hotel tax, building code fees, and municipal court fines have all decreased this year by $415,000.
As a result, Plainsboro used $4.3 million in surplus to offset some of the impact, an amount that is “significantly higher than last year,” Sheehan said.
In the area of expenses, the largest area of increase 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 our insurance fund,” as well as the fact the township had saved some benefits costs and received some concessions in some of its negotiated agreements, said Sheehan.
“That is a one-time possibility at this point,” he said of the surplus. “Next year, those increases may return to the neighborhood they had been in the past.”
However, Sheehan said all of the township’s contracts with its workers represented by unions expire in 2010. “We are confident the settlements will acknowledge the challenging fiscal conditions we are currently in.”
The budget continues to maintain support for the rescue squad and historical society, as well as the library. At the library’s request, the budget reflects an increase in funding, taking into account that the library has moved into its new facility. The library’s own budget uses $300,000 in reserves, which will not be available next year.
The budget eliminates out-of-state travel for municipal staff, while officials are looking at other ways to reduce costs and increase revenues, Sheehan said. To that end, the staff is reviewing all fees charged by the township as well as the outsourcing of snow clearing and lawn services on the municipal and library properties. The township is also working with other towns on an effort to establish shared dispatch services.
It is also looking at entering into a shared services agreement with Cranbury to provide IT services to its police department.
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.
Prior to Sheehan’s presentation, resident Jack Farrell spoke during public comment. He asked the committee to try to keep costs down, adding that paying $19,000 in taxes is, for some taxpayers, a third or fifth of their income.
“It seems like you did a pretty good job at where you cut,” he said. He asked them to take a closer look. “If the house is on fire, you’ve got to start throwing out the couch to try to save it.”
Cantu assured him the township would do everything it could to minimize the tax impact. “Whatever it is, it’s going to be minimal compared to the school district.”
He said township officials were already preparing to send letters and resolutions to the state because they feel it was “inappropriate” for the state to cut 72 percent of the school district’s state aid without any warning.
Committeeman Ed Yates echoed Cantu. “The state seems to be dumping their roles on everyone else.”
The mayor said most of the costs in the municipal budget were out of the township’s control, including $200,000 needed to defend against tax appeals as well as the increases in utilities, insurance and pensions costs, which put together, account for $1 million — nearly all of the increase.
Cantu suggested the staff look at using even more of the surplus to offset the burden. He said he would like to see a “skinnier surplus,” but not one that puts the township in fiscal danger.
Committeeman Neil Lewis said the budget was, “tightly-structured.” He added, “While it’s been strained because of the restraints, we still offer the services and quality of life” residents expect.
Committeeman Michael Weaver said the budget “continues to provide good value for the services” the township offers.
