Township Trims Tax Increase; Final Rise Remains in Question

Matthew Hersh

Princeton Township Committee has managed to trim half a cent off its tax increase for 2004, but the final number remains in the air as the Township and Borough have yet to discuss joint-municipal commissions.

Despite the reduced forecast to a 4.5 cent-increase from a once-projected six cents, Township Administrator James Pascale warned that lowering the increase even further would dip into the Township's surplus. He added that a zero increase in Township tax would "tap out the surplus."

"We would rather see the money go back to the surplus than continue to reduce the increase," he said.

Township Mayor Phyllis Marchand also warned about the danger of using the surplus to reduce tax increases using the Borough as an example of the worst-case scenario. The Borough has managed to reduce its municipal land tax increase to 14 cents from a once-forecasted 20 cents.

"It's more prudent to try to keep a steady rate if we're going to have an increase at all," the Mayor said.

Mr. Pascale did indicate, however, that the tax increase reduction will not affect the surplus.

While no final budget is expected until after the governing body meets with Borough counterparts to discuss joint operations, the budget estimate, which currently stands at approximately $30.2 million, remains to be determined, according to Township Chief Financial Officer John Clawson. The figure is approximately $2.7 million higher than the 2003 operating budget.

Borough Council and Township Committee have set a tentative date of Monday, March 29, to discuss the financing of joint-municipal commissions. However, scheduling conflicts may push the meeting into April.