Princeton Taxes Will Decrease, But Residents Will See Overall Higher Taxes

The owner of an average home in Princeton will pay $3,802 in municipal property taxes next year, according to Princeton’s preliminary 2013 budget.

That figure is based on the average assessment on a residential property in Princeton: $792,000.

Princeton’s tax rate is expected to be $0.48 per $100 of valuation. This includes the open space tax. 

Last year, Princeton Borough residents had the same tax rate, $0.48, including the open space tax. Princeton Township's tax rate was $0.49, including the open space tax, so the 2013 tax rate would be a penny less for former Township residents.  

Still, residents will see higher overall tax bill next year because Mercer County has proposed an 11 percent increase and Princeton Public Schools has proposed a 2 percent increase.

“Without a doubt, people’s property taxes are going to go up for a few percentage points even though we’re doing a good job holding the line on (municipal) taxes,” Scott Sillars, a member of Princeton Citizen’s Finance Advisory Committee, told residents this week.

A public hearing on Princeton’s municipal budget is scheduled for May 28 beginning at 7 p.m., at 400 Witherspoon Street.

The total preliminary budget for the consolidated Princeton is $61 million, about $3 million less than the current combined budgets of Princeton Borough and Princeton Township. But because the former Township and Borough double counted for shared municipal services, the estimated actual preliminary savings from consolidation is about $750,000, Sillars said. He also said that savings estimate is preliminary and could be higher pending further investigation.

Cost savings included in the 2013 budget are $1.8 million in salary and benefits reductions (including reductions in force, resignations and eliminating vacant positions) and nearly $600,000 by moving former Township employees to a state health care plan 

Officials say Princeton services have been maintained or improved post-consolidation. For example, municipal garbage collection was extended into the former Township for a cost of $1.1 million, a cost offset by salary and benefits savings. Former Borough residents, however, have seen service reductions from new leaf bagging requirements and limitations on brush removal. 

Cost increases in the 2013 Princeton budget come from an additional $630,000 higher reserve for uncollected taxes to cover increases in school and county taxes, $550,000 for emergency storm cleanup and contract negotiations with all three employee unions.

State aid is expected to be unchanged at $2.457,276. 

Still, with the total individual tax bills expected to rise, some have questioned how Princeton stacks up to other communities. For example, West Windsor and Lawrence Township have significantly lower budgets than Princeton, one resident told Council this week.

Princeton Administrator Bob Bruschi said comparing Princeton to neighboring towns is not necessarily an accurate comparison because Princeton provides some services other towns don't , including Corner House and a newly renovated $6 million community pool.