At its meeting May 8, Princeton Borough Council formally adopted a budget for 2012. The last before the two Princeton’s consolidate, the $26.5 million budget does not include an increase in taxes.

“This has put us in what I believe is a very, very sound financial position,” said Borough Administrator Bob Bruschi. “At the end of 2011, we had the largest surplus in the last 13 years, at least $4.9 million. We’re going to bring a nice dowry with us in January to the new Princetons, as will the Township.”

The budget increased $596,000, or about two percent, over last year. It includes $50,000 each for a traffic study and a transit study. The Princeton Public Library’s budget is up $75,562, with salary and benefits representing $35,000 and maintenance and building expenses at $41,000. Legal expenses for the Borough rose $66,000.

The tax levy for 2012 is $10.3 million. The Borough municipal tax is 43.1 cents per $100 of assessed property value. That means the owner of a home assessed at $748,070 will pay $3,223 in municipal taxes, according to the breakdown. Revenue includes $1.5 million in parking fees, $3.4 million in sewer charges, and $1.2 million in court fees. Princeton University’s contribution, a payment in lieu of taxes, rose $520,000.

Also at the meeting, Arts Council of Princeton Executive Director Jeff Nathanson delivered a report focusing on the work the organization does for the Witherspoon/Jackson neighborhood. Since 2009, the Arts Council has been running in the black, he said. “But it is a constant struggle to keep up with demand, so we rely increasingly on private funding.”

The biggest financial challenge is the retirement of the mortgage on the Center’s Paul Robeson building. There is $750,000 still to be raised on the $2 million debt, Mr. Nathanson said. “We feel the history of the neighborhood is extremely important. We serve more than 150 students per week in after-school programs. We’ve increased the value of our scholarships by $3,000. It’s been another year of growth, but also the time to strategize,” he said.