West Windsor Mayor Shing-Fu Hsueh last month presented township council with a $28.99 million municipal budget that calls for a lowest tax increase since the post 9-11 economic slowdown.##M:[more]##
The budget, a 3.7 percent increase over last year’s $27.9 spending package, would increase taxes by 3 cents per $100 of assessed valuation.
If the spending plan were approved with those numbers, it would result in an annual tax increase of about $105 on a home with an assessed valuation of $350,”000.
But with the budget now in the hands of council, the overall budget figures and impacts are likely to change. Council is scheduled to meet in a series of work sessions this month and in March to review the budget.
The tax increase as currently proposed is the smallest during Hsueh’s administration. Significantly decreased revenues coupled with rising mandatory costs caused tax increases of 7 cents in 2002, 6 cents in 2003, and 4 cents last year.
According to Hsueh, factors causing this year’s spending increase include contracted salary obligations, health insurance and pension increases, and the cost of a township-wide property revaluation.
Hsueh points out that although this year’s budget calls for a tax increase, the municipality for the third year in a row has been able to increase the budget surplus. “In the past politicians in this town have used the surplus to give tax breaks as a political gimmick,” says the mayor.
Municipal financial experts agree that reducing the surplus to low levels is a dangerous practice that can lower a community’s bond rating and leave a community short in cases when emergency funding may be necessary.
Under the proposed budget, some 71 percent of the overall surplus of about $3.5 million — will go towards lowering taxes. The retained surplus of 4.97 percent — about $1.4 million — is the highest level since 1991, when the retained surplus was 4.7 percent.
The surplus situation has been a far cry from the late 1980s, when the surplus was at levels greater than 20 percent. During the 1990s, the fund was depleted annually to prevent tax significant increases.
By raising the retained surplus to almost 5 percent — the level recommended by Moody’s Investor Service, a Wall Street bond rating house, Hsueh says he hopes to raise the township’s bond rating, as well as provide fiscal stability for the township and avoid significant spikes in the tax rate in future years.
“I am trying to be conservative to protect the town’s long-term financial stability,” says Hsueh. “I don’t think we should play games any more. During my first year as mayor, we had unexpected expenditures and we couldn’t really do anything because there was no surplus to play with.”
Also included with the budget was a $4.95 million capital improvement program for 2005 that includes $2.98 million projects to be bonded and $1.97 million in projects funded by outside revenues. The plan includes:
• $1.5 million for the realignment of Meadow Road to connect directly to the Meadow Road overpass at Route 1;
• $850,”000 for park projects, including improvements to Duck Pond Park, the Conover Road athletic fields, the Hendrickson Drive tennis complex parking lot, and the construction of skateboard park at West Windsor Community Park,
• $500,”000 for the annual road improvement program;
• $500,”000 for an expansion of the senior center;
• $250,”000 for improvements to Millstone Road;
• $250,”000 for various bicycle and pedestrian path improvements and construction;
• $75,”000 for renovations to the historic Schenck Barn in Zaitz Park on Southfield Road;
• $50,”000 for renovations to transform the former Princeton Junction firehouse on Alexander Road into an arts center; and
• $20,”000 for the demolition of structures on to
