The $37.4 million West Windsor 2011 municipal budget proposed by Mayor Shing-Fu Hsueh to Council calls for the lowest increase in 17 years — only $358,000, or less than 1 percent, over last year.
Despite the 0.97 percent increase, the township will be burdened with a large increase in state-mandated pension contributions and a loss of more than half a million dollars in revenue — translating into a 5.3 percent increase for taxpayers through the municipal tax levy.
The tax levy, however, still falls within the 2 percent cap the state has mandated for all municipalities and school boards because of the exceptions provided by the state, West Windsor officials said.
During a special meeting on February 28 to review the budget, however, members of the Township Council asked the administration to provide a scenario in which the budget was reduced overall by five percent.
According to Council President Kamal Khanna, the council just wants to see what the budget would look like if “it were to arbitrarily be reduced by 5 percent.”
“They’re asking if, hypothetically, it was reduced by 5 percent, what impact will it have?” explained Khanna. “The administration will identify that 5 percent,” which represents $1.8 million of the total budget. “If we were to reduce the budget by $1.8 million, what services would we have to give up, and what would it cost the residents?”
Khanna said the council is supposed to introduce the budget by a deadline of Friday, March 11. “I’m targeting that,” said Khanna. “If we can get all the answers before that, we might introduce it on time so we can adopt the budget by Friday, April 22.”
Khanna said the overall budget as it currently stands, is within the cap and we still maintains full services. “And we didn’t lay off anyone, so that’s the best scenario.”
According to the budget figures and memo Hsueh sent to Council last month, $22,089,531 will be raised through taxation this year, an increase of $1.1 million, or 5.3 percent, over the 2010 tax levy, which was $20,978,377.
“The only permitted exclusions to the CAP include pension contribution increases, health insurance increases, increased debt obligations, and credits for new tax ratables,” Hsueh stated in his memo.
In the area of expenditures, the administration cut $583,763 from the amount requested by department heads within the township for a final total of $37,405,000. “As a result, total expenditures for 2011 increased only $358,000 from last year’s total of $37,047,000,” Hsueh wrote.
Hsueh explained in the memo that the salaries and wages portion of the budget increased by $124,830, or 1.02 percent over last year’s amount. However, there will be an elimination of one full-time employee in the Division of Land Use and two part-time employees in the Division of Code Enforcement and Division of Senior & Social Services — all through attrition. There will also a be a reduction in overall overtime appropriations. The other expenses portion of the budget increased by $233,170 — a 0.94 percent increase over the prior year.
Included in that amount is the $120,705 in debt service increase (excluded from the cap) and additional costs that Hsueh says the township has no control over, including an $91,828 for the Stonybrook Regional Sewerage Authority as well as a $425,710 increase in pension contributions.
The biggest cuts came from the capital expenditures, which are presented as part of a six-year Capital Improvement Program (CIP) that accounts for ongoing projects, like road and sewer repairs, equipment and vehicle acquisition and replacement, and improvements to the township’s facilities, property, and parks. This portion of the budget was cut by $801,305 from last year’s budget, bringing the total to $4.8 million.
When it comes to revenues, the township lost $753,154 in total revenue for 2011 — from $16 million in 2010 to $15.3 million this year.
Some of the bigger revenues include $2.2 million in Energy Tax Receipts from the state, $5.5 in miscellaneous revenues, and $4,435,000 taken from the township’s fund balance. It also used $3.1 million in sewer service charges.
“The net loss of revenue will require us to use an additional $35,000 from our fund balance,” Hsueh stated in the memo. “This will continue the recent trend of reduction of our fund balance and is a serious concern, given our goal of sound and efficient long-term financial management.”
Hsueh emphasized that the budget process had been “extremely difficult” given the current economic circumstances and the changes at the state level. However, the administration was able to stay within cap while maintaining full services to the community, he said.
“The Township of West Windsor is committed to providing the necessary resources to ensure that the residents of our community continue to receive the essential services that they need and deserve,” he wrote.
