Savings from consolidation total $750K in preliminary 2013 budget

The consolidation of the former Princeton Borough and Township has resulted in net savings of $750,000 from the consolidated municipality’s 2013 preliminary budget, according to a presentation of the budget on Tuesday evening. This figure, which is the first to take into account the transition costs of the merger, is significantly lower than the $3 million reported by several local news organizations.

The total expenditures of 2013 total about $61 million, and were released earlier this month. This is about lower than the combined 2012 budgets for the former municipalities, which totaled nearly $64 million. However, the $61 million figure for the budget did not include the one-time costs necessary for the transition.

Various factors created costs that reduced the total savings figure, including lower taxes, normal annual costs such as town employment salaries and benefits, and the expansion of trash services from the former Borough to the whole consolidated Princeton.

The recent lowering of municipal taxes is funded by savings from consolidation. The higher trash collection costs will amount to $1.1 million, which will be paid out of the $1.8 million in savings from staff reductions.

One-time costs from consolidation, such as a health insurance premium increase, higher storm-related costs and transition costs including moving expenses, have also reduced the figure cited for the town’s total savings from consolidation. The state Department of Community Affairs has agreed to contribute to these costs, but has not yet committed what amount it will pay.

“People deserve to know what the real number is,” Princeton resident Rob Whiteside said. “Isn’t it disingenuous of Mr. Bruschi and the council to allow people to think the savings were $3 million?”

Mayor Liz Lempert responded, “Part of tonight’s presentation was to explain. We’re trying to get information out to the community.”

“Somehow that number got out there and it was confusing,” Councilwoman Jenny Crumiller said. “I do think that we should work hard to correct any perception that the budget is being reduced by 3 million.” Crumiller also attributed the $3 million figure to the way that accounting had been done in presentation of the predicted savings figure.

County and school taxes will also increase by 11 percent and 2 percent respectively in 2013, further reducing total savings. Municipal taxes will make up 23 percent of all property taxes for 2013. School taxes will make up 48 percent, while county taxes will make up 29 percent.

The preliminary 2013 budget is still under review by the staff. Town administrator Kathryn Monzo said that the Council is likely to amend the budget resolution before approving it, so the date of adoption may extend past May 28, the scheduled date of the public hearing. Monzo said that this extra time would provide citizens with more opportunities to provide input.

A resolution on the easement for the University’s Arts and Transit Neighborhood construction project was passed in a 4-2 vote. Mayor Liz Lempert, whose husband is a professor in the University’s psychology department, and Councilwoman Heather Howard, who lectures in the Woodrow Wilson School, recused themselves from the vote.

The prediction of $3 million in savings from the town’s annual budget originally emerged in 2011, when the Consolidation Study Commission was preparing a report on the possibility and feasibility of consolidation. The Commission’s report cited $3 million as a prediction for the amount of savings that would be realized after consolidation was fully implemented following a schedule of staff reductions that would occur over the course of three years.