Council discusses increasing University contribution

The Borough Council unveiled the preliminary 2006 municipal budget and passed an affordable housing ordinance at a meeting Tuesday night.

The preliminary budget, which contains all funding requests, represents an increase of about $1.88 million, or 8.5 percent, over last year.

The largest increases were made to the library, the health department and employee pensions, and revenue increases were projected in alcoholic beverage licenses, fire and housing fees, hotel taxes and court fines, Borough administrator Robert Bruschi said. With these changes taken into account, the Borough will have to raise an additional $901,000 in taxes in 2006.

The University contributed a total of $600,000 to the Borough last year, donating an additional $250,000 over the amount it had agreed to pay. The University is expected to increase its contribution slightly next year to a total of $650,000, according to the report.

The Council discussed methods to further increase funding from the University.

"It's about time the process was institutionalized" to be discussed on a regular and planned basis, councilmember Roger Martindell said, because the issue is generally discussed "only during budget time and elections."

Councilmember Wendy Benchley suggested forming a standing committee with a "larger strategy and a more holistic approach" that would incorporate University alumni, the Board of Trustees and President Tilghman to more constructively evaluate the University's contribution to the Borough.

"We never seem to be able to get a thorough analysis of the whole campus and the plan of the University," Benchley said.

Councilmember Barbara Trelstad, who was sworn in at the meeting after being chosen last week to fill the seat of newly selected mayor Mildred Trotman, said she wanted to get students involved and to initiate a "comparative study of what other universities contribute to their towns."

The Borough's fiscal goals for 2006 include rebuilding a 5 percent surplus, building a capital budget around debt service and stabilizing taxes, Bruschi said.

The Council then debated the affordable housing ordinance, which requires that builders in the Borough pay a fee to receive building permits, with different provisions for different categories of development.

Due to state Council on Affordable Housing (COAH) guidelines, Borough construction incurs an affordable housing obligation that the Borough must construct.

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According to a Borough study, construction of one to four units of housing would incur a fee of $58,430 per unit, which would be applied to affordable housing. Construction of larger structures or of nonresidential buildings would incur greater fees.

Bruschi said that the University contributed $60,000 toward affordable housing this year. The Council discussed methods to guarantee University contributions from future construction and decided that the ordinance adequately secured that goal.

Martindell rose in opposition to the ordinance, calling it a short-term solution. "It does not help Princetonians," Martindell added, explaining that the plan encourages out-of-town residents to move into new units but pushes current low-income residents out of the Borough.

Trelstad suggested incorporating a sliding scale that adjusted the fee based on the value of the home to be built.

The ordinance passed 5 to 1 with no amendments.