Plainsboro Township administrator Robert Sheehan presented a draft budget calling for a proposed tax rate increase of 1.5 cents; but Mayor Peter Cantu asked for that number to be reduced to one cent.
Sheehan presented the administration’s draft 2014 budget at the Committee meeting on February 26. Questions from the Township Committee followed; as a result of that discussion the Township Committee directed Sheehan to make further reductions in order to lessen the property tax impact on residents. Sheehan promised to revise the budget to reflect a tax rate increase of only one cent. Under Sheehan’s original budget, the tax impact would have been an increase of $58 on an average home (valued at $386,200). Now that number will likely be less.
The total budget as presented was $25,620,148, which is an increase of $366,243 over the 2013 township budget. The proposed budget assumed that state aid will remain the same as in 2013, which was $1,644,744; it also includes using $4,135,000 from the surplus as a revenue source.
According to Sheehan, other revenue sources were “a mixed bag”: UCC fees decreased by $135,595, but hotel tax revenues increased by $100,327, and court fines increased by $56,548.
There were several increases to the operating budget, including pension payments of more than $100,000 for police and non-police personnel. There was an increase in the payment due of bond principal of $123,000; however, this will be offset by a decrease in interest on bonds of $144,331. Similarly, while health insurance premiums increased seven percent, or $88,090; this was muted by a $250,000 employee contribution.
Savings include a decrease of $150,000 over the past three years in police overtime costs, as well as a savings of $562,945 as a result of the township’s health insurance opt-out program.
The proposed capital budget is $2.7 million and includes projects such as: a new roof for the municipal center; road maintenance and repair; the purchase of public works equipment; and the purchase and maintenance of equipment and technology for various township departments.
Sheehan advised that the administration will revise the budget, which will be formally introduced at the March 12 committee meeting.
