Budget Still Under Watchful Eye; Borough Residents Offer Solutions

Candace Braun

Approximately 40 Borough residents attended Borough Council's meeting on Tuesday, April 27, seeking to promote their own recommendations for how the Council should manage its $21.86 million budget predicted for 2004.

The proposed budget would increase the property tax rate in the Borough by 14 cents per $100 of assessed property value, bringing taxes up to 86 cents per $100 of assessed valuation. If passed, the budget increase will be the largest in 25 years.

"Like an indulgent parent, you've been giving out to everyone who wants something in the Borough," said Charlotte O'Connell, a Patton Avenue resident.

Both Council members and residents said they want to see the budget for 2005 remain the same as 2004, with no increases. Borough Administrator Robert Bruschi said this would require cutting $900,000 from the predicted budget for 2005.

Cutting Borough programs, reducing Borough staff by not filling vacancies, and increasing Borough employee health department deductibles and co-pays were ideas suggested by both the public and Council members at the meeting.

Some residents asked why Council has never looked to the community for help managing budget costs.

"[Creating a budget] is an art, and it has to be done right," said Helmut Schwab, a retired businessman and Borough resident.

Mr. Schwab said he would be willing to meet with Council privately to go over the budget and offer his own suggestions for alleviating taxpayer's costs.

Items cited as major increases by the Borough administrator include $800,000 in debt service, and $225,000 in costs to pay the additional staff for the new library. An increase of $500,000 in employee health insurance, and $316,000 in sewer costs also occurred this past year. These costs are not controlled by the Borough, said Mr. Bruschi.

University Contributions

Councilman Roger Martindell and other Council members discussed the idea of increasing parking revenues to help reduce budget costs. However, several residents said they felt that one of the main reasons that taxes are so high in the Borough is because Princeton University doesn't contribute enough money to the municipality.

"To discuss parking fees and ignore the gorilla across the street is an atrocity," said Eleanor Lewis.

The resident, who said she pays over $10,000 a year in taxes, told Council to start making cuts wherever necessary to bring the budget down.

"You rarely say no to an expenditure ... You have to get tougher or you're going to bleed us dry," said Ms. Lewis.

Mr. Bruschi agreed that the University would make a significant difference in taxes if it paid them in full for the land that they occupy: "If [Princeton University] was on board, we'd literally be able to cut our taxes in half."

PILOT properties, or institutions that make payments in lieu of taxes annually, include Princeton Theological Seminary, which gives the Borough $144,565; Princeton University, which gives $313,354, along with various other donations; McCarter Theatre, which gives $149,809; and an additional $132,083, which is given by various other institutions. This totals $739,811 annually, or 3.3 percent of the total revenues the Borough receives.

Unlike other Ivy League schools, Princeton University pays full taxes on all residential properties owned by the school, said Pam Hersh, a Borough resident and director of community and state affairs for the University.

She defended the University by listing the many community facilities the school has given money to, such as the new Princeton Public Library and the University Medical Center at Princeton. She also reminded Council that money the Borough receives from McCarter Theatre each year is actually money given by the University.

"We try not to be a welfare case. We try to pay our fair share," said Ms. Hersh.

Council will continue the public hearing on the budget at its meeting on May 25, at which time a vote may be taken to adopt it. Council will also hold an additional budget meeting in September to go over costs for 2005.