Council announces small tax increase for Borough

During the open session, Borough Administrator Robert Bruschi presented a proposed municipal budget for 2011. The budget includes a proposed 1 cent increase per every $100 of assessed property value.

Pointing to the $2 million surplus in last year’s budget, Bruschi explained that any tax increases in the near future would likely remain small.

“We’d like to be able to continue to be a full-service community and to keep our tax rate flat,” he added. “That might be a little iffy in some areas, but I think it’s still doable at this point.”

In this year’s budget, two services previously operated independently will become jointly administered with the Township.

Beginning on July 1, the Borough’s tax assessor function will be fully transferred to the Township and the Borough will take over the Township’s fire inspection operations in conjunction with its own.

Budgets for the joint agencies will come before the municipal councils in the next few weeks and will be approved in a formal public hearing.

Several council members raised concerns about the budget deficiencies that would arise if certain sources of revenue, such as the University’s voluntary annual contribution, were reduced.

After the University’s initial abandonment of its planned Arts and Transit Neighborhood in January, officials indicated that the recent tensions with the Borough and Township could factor into the University’s decision whether or not to continue with payments.

Last year the University contributed $1.2 million to the municipal operating budget as part of a six-year agreement that is set to expire this year.

“Let’s assume that the University decides to severely cut back its contribution to the Borough’s operating budget,” Councilman Roger Martindell said. “What do we do?”

Council member Jo Butler seconded Martindell’s concern and desire for a back-up plan.

“The University has been public about their threat to not make [Payments in Lieu of Taxes] in the future, so I think that’s something they need to take very seriously,” she said.

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Bruschi agreed, but noted he was confident in the Borough’s future. “What you are painting, I think, would be a perfect storm, a tsunami, really, for us. That would be a tough one to weather, with serious financial implications,” he said. “I think you’ve done everything you can, as a Council, to have reasonably modest tax increases.”

He added that, were the University to cut its contribution, the Borough would have to dip into its surplus funds. “Could we weather that? Yeah, we could,” he said.

Discussions on the budget will continue for the next few weeks before final approval.

According to a source at Borough Hall who asked not to be named, the Council discussed “goals, strategies and protocols for the negotiations between the municipalities and the University” during its closed session.

The source said the Council’s goal is “to protect our constituents’ interest in promoting a University development that is consistent with the mass transit needs ... We’re working to define and narrow the issues to minimize the difference between the municipalities’ position and that of Princeton University, and we’re doing so in a way that presents the best case for the municipalities.”

The Council’s next step, the source said, will be to continue ongoing talks between Borough and University officials.

During the open session meeting, the Princeton Regional Health Commission presented its annual report to the Council and requested sufficient funds to increase the weekly hours of two of its part-time staff members from nine hours to 15.

During discussions over the Health Commission, Councilman David Goldfarb again brought up concerns about alcohol abuse at the University, a question he raised at last week’s Borough Council meeting.

“I know that if we had an outbreak of food poisoning at one of our local restaurants that you could address it very effectively,” Goldfarb said to the Health Commission representatives. “Knowing that we have life-threatening situations associated with alcohol abuse in town, it seems to me that we ought to be making a more concerted effort to address that particular problem and that some of that effort should be coming from the Health Department.”

David Henry, the Commission’s Health Officer, said that the Commission would look into it.

“We basically felt there wasn't a need to duplicate a service if ... Princeton University was doing it from some sort of health promotion or health education service,” he said. “But I can bring this back to the Health Commission to see if there are any collaborations we can do."

The Council also approved the start of a "Bring Your Own Bag" campaign, a recommendation to local merchants and shoppers to encourage the use of reusable or recycled bags instead of plastic bags.

Correction

An earlier version of this article reported that the Borough had proposed a 1 percent tax increase, when in fact it proposed a 1 cent increase on every $100 of assessed property value.