Citing major increases in salaries and benefits, as well as increased contributions to affordable housing, Township Committee Monday unanimously introduced an "austere" $31 million operating budget—a 5.5-cent increase for 2006.
The hike represents about a $1.2 million increase from the Township's 2005 budget, resulting in an approximate $238 levy on the average Township home assessed at $424,079.
The 2006 municipal budget, which makes up about 22 percent of a Township resident's tax burden—the remainder going to finance schools, open space, and county tax—was illustrated by Township officials as an ongoing trend throughout the region. Kathy Shaddow, the Township's chief financial officer, cited similar increases in Princeton Borough and South Brunswick Township.
The lion's share of the municipal budget, or 18 percent of the total cost, goes to finance debt service—infrastructural improvements and repairs such as roads. Public safety, however, nearly matches debt service in its share of cost. Public safety costs include fire; first aid; emergency management; hazardous routes busing; and police. Health and Human Services, which includes Corner House, the Health Department, and deer management was next at 15 percent, followed by Parks and Recreation and the Princeton Public Library at 12 percent.
One of the biggest increases overall was the Township's $200,000 recommitment to its affordable housing program. This year, with the state's stricter mandate requiring municipalities to enact more aggressive affordable housing plans, the Township had to reinstate funding to the affordable housing program. In 2005, the Township "zeroed out" funding because of available reserves—reserves that were no longer in play this year, said Township Administrator James Pascale.
Another large increase comes in the form of salaries and benefits for municipal employees. Although the Township has attempted to reduce expenses through a reduction of staffing in various departments, including administration and police, salaries and contractual increases still loom.
Energy costs have also driven up budgetary costs, Mr. Pascale said.
Ms. Shaddow said that the Township's budget surplus, used to offset up to 3.5 percent of the total appropriations, was reduced in spending from last year—about $365,000 less than 2005—to curb what she called a "downward trend." By using a smaller portion of the surplus, she said, the surplus could be on track for growth in coming years.
At the end of 2005, the surplus balance stood at about $4.22 million and in this year's budget, the Township is proposing to use about $3.15 million of that amount, leaving a little over a million dollars at the end of the year. "That's a better position than we were in last year," Ms. Shaddow said. The remaining balance of the budget at the end of 2004 was $831,000.
She added that the remaining surplus balance could push $2 million within the next 10 years.
If more surplus funds were used, "We could make this a zero tax increase," Mr. Pascale said, "but that would be inappropriate and we don't want to do that."
A public hearing for the 2006 municipal budget will be held at Township Committee's regular May 22 session, following a May 16 joint-municipal meeting with the Borough assessing budgetary costs of inter-municipal agencies.
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In other news, following a $60,000 state grant for Corner House, Township Committee passed a resolution that would appropriate $22,500 toward the salary of a new outreach coordinator who would implement programming for "at-risk youth."
The resolution would serve as a companion measure with the Borough, which, if passed, would match the Township's funding for a full $45,000. The cost would cover both salary and benefits.
Committeeman Lance Liverman, who serves as the Township's liaison to the Human Services Commission, said while there is no "magic bullet" in stamping out potential problems facing high-risk youth, implementing a full-time outreach coordinator "is one of the best things we can do at this time."
Township Mayor Phyllis Marchand said that increasing concerns regarding community youth merit this type of program: "We are on the right track. We need more help than just the police."
Committeeman Bill Hearon said that, with the upcoming summer season, now would be an appropriate time for the creation of such a position. Said Deputy Mayor Bernie Miller: "It's taking action to head off a situation that could potentially be damaging."
Borough Councilwoman Peggy Karcher is expected to introduce a companion resolution to Borough Council.
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Township Committee passed a series of ordinances Monday night, including a trio of amendments to the municipal land-use code. One would be to rezone some of the lands in the Township's R-5 district, including the western portion of Route 206. In that district, some of quarter-acre lots will be rezoned to a half acre. The reason stems from a 2005 campaign by several residents in that area that said a majority of the properties there are already in half-acre lots. Regarding part of the Princeton Ridge, a recommendation was put forth to increase the size of the building lot to preclude higher density on smaller lots.
The other two amendments are effectively clarifications in the Township code. Nursing homes and assisted living facilities had been permitted as a conditional use in the Township's RA and RM zones, when, in fact, the zones had not been intended for that use. An asterisk had been placed in the zoning chart "by mistake," Township Attorney Edwin Schmierer said. Additionally, for the Township's residential zones, an asterisk had never made it to the zoning chart for home occupations. A resident is allowed to have a home occupation, if home occupations standards are satisfied.
Those changes will be heard in a public hearing on May 8.
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Per the state's Council on Affordable Housing mandates, the Township identified its official affordable housing liaison to the state as Christy Peacock, who had already been the municipal affordable housing coordinator.