For the fourth year in a row, Princeton Borough’s proposed budget includes no increase in municipal property taxes. Borough Council voted unanimously last week to reintroduce a 2012 budget, which was scheduled for a final vote at last night’s meeting of the governing body [after press time].

On the expense side, there were some changes. The $26.4 million budget is $546,000 higher than the previous year. While funding for maintenance of sewers is decreased, it is increased slightly for health, fire services, and senior citizen programs. Maintenance of Princeton Public Library is up $45,883, which was attributed to a small budget increase and the fact that employees who used to park for free in the lot at the former Merwick facility now park at no cost in the parking deck adjacent to the library.

Councilman Kevin Wilkes suggested that library employees park on the top level of the garage, which is usually not crowded, so as not to take spaces away from paying customers on lower levels.

Representing the Borough’s affordable housing board, resident Anne Neumann described a loan program currently being researched by the board and suggested the Borough fund such an initiative. The program would help residents who are unable to pay their property taxes, which for many homeowners rose substantially due to recent property revaluations. Many seniors and residents of moderate income have been struggling to make payments, she said.

“Residents who receive these loans would be able to remain in their homes longer, near family and friends. They would not be forced to sell their homes in a down market,” Ms. Neumann said, adding that this type of initiative would be preferable to a reverse mortgage. The program would not cost the Borough anything, because interest would be charged on the loans.

Councilwoman Jenny Crumiller recalled that the idea of a loan program was not looked upon favorably by residents when it was suggested after the revaluation. Ms. Neumann responded that it would be important to explain to residents that a direct loan differs from a reverse mortgage program. Councilman Roger Martindell, who heads the finance committee, encouraged the development of such a program, but that it would need to be “fleshed out.”

Ms. Neumann suggested that Princeton University’s voluntary payments in lieu of taxes could be used to fund the program. Representing the University, Director of Community Affairs Kristin Appelget told the Council that it is up to them to determine how to make use of those funds, not including the $250,000 that was reserved for consolidation costs. Mr. Martindell suggested the Borough use the funds left in its affordable housing trust, which must be spent by the summer, to pay for a loan program.