The Princeton Council adopted its $74.5 million municipal budget for 2024, following a public hearing April 29.
The municipal property tax rate will increase from 56 cents per $100 of assessed value to 58 cents. The owner of a house assessed at the town average of $853,136 will pay $4,948 in municipal property taxes.
A Princeton property owner’s tax bill includes the municipal property tax, the library and open space taxes, the school district tax and the Mercer County property and open space taxes.
Overall, the municipal budget increased by $1.06 million, said Chief Financial Officer Sandra Webb.
Much of the increase was driven by salaries and wages – specifically, cost-of-living increases and contractual obligations, Webb said. There is also money for the newly-created position of fire chief and for newly hired 911 dispatchers.
Councilman David Cohen, who chairs the Princeton Council’s finance committee, said the salaries and benefits increased by $932,000 to pay for several new positions and contractual obligations.
The town is hiring its first paid fire chief, and an administrative assistant is being hired for the Human Services Department, Cohen said. The salaries for the town’s own 911 dispatchers would be offset by the savings received by dropping the company that previously provided 911 dispatch services.
Webb listed several cost-drivers in the budget that ranged from an increase of $524,500 for group health insurance to $171,070 for workers compensation and liability insurance. The cost of trash collection and recycling increased by $340,000.
During the budget preparation process, officials took a hard look at spending and trimmed $1.7 million, Webb said. A review of spending showed that department heads consistently asked for the same amount of money, but did not spend it.
“These were true budget cuts,” Webb said. “We looked at what was spent. We were able to cut $1.7 million on expenses.”
The main source of revenue to support the budget is property taxes. The amount to be raised by property taxes is $40.1 million.
Miscellaneous revenue is expected to generate $22.5 million. It includes revenue from fees and permits, licenses, municipal court costs and the hotel and motel tax.
The town will use $10.7 million in surplus funds to help balance the budget. The surplus account contained $21.5 million on Dec. 31, 2023.
Princeton University will contribute $5.2 million as its fair share toward the budget, plus an additional $200,000.
Voluntary contributions from the Institute for Advanced Study and the Tenacre Foundation are $250,00 and $500,000, respectively.
AvalonBay Properties will make its first PILOT – payment in lieu of taxes – of $599,000 on its development on Thanet Road, off Terhune Road.
Additional payments in lieu of taxes include $330,000 from Princeton Community Village and $100,000 from Elm Court.
Princeton will receive $2.7 million in state aid.
On the expenditure side, $8.4 million has been allocated to the Princeton Police Department and $1.3 million for the Princeton Fire Department.
The budget earmarks $5.3 million for the Department of Public Works, which handles road maintenance and repair, public buildings and grounds, vehicle maintenance and the maintenance of sewerage facilities.
Finally, $4.2 million is included in the budget for pension contributions to the Police and Firemen’s Retirement System and $2 million to the Public Employees Retirement System.
Councilwoman Mia Sacks thanked Webb for another phenomenal job. She also thanked Cohen for his work on the finance committee.
Councilwoman Michelle Pirone Lambros said that while she is often asked by residents about what can be done to lower property taxes, she noted they will receive a lot of services for their tax dollars.
“The budget increase is really for the cost-of-living increases,” she said. “There are unfunded mandates (requirements issued by the State of New Jersey), and prices are going up.”