Cranbury Committee Adopts 2011 Budget

The Cranbury Township Committee voted 4-1 Monday to adopt its 2011 municipal budget. Mayor Winthrop Cody was the lone holdout, largely due to the budget’s two-cent municipal tax increase, for an average tax increase of $88.

Since its introduction last month, the $10.8 million budget has been an issue of contention for the committee and the public. At both this week's meeting and the , Mayor Cody attempted to change his colleagues’ minds by offering alterations to the budget that would make the tax increase unnecessary. On Monday, the mayor’s focus was on capital ordinances with leftover funding.

When the committee approves a capital ordinance, a specific dollar amount is set aside for the project in a capital cash account. Often this amount is greater than what is ultimately used, leaving funds behind. Mayor Cody speculated that approximately $2 million of leftover capital funding might be available for the township to use, while the rest of the committee was skeptical as to how much in extraneous funds existed.

In order to free up the funds, Cranbury would have to cancel the remaining balance allocated for specific ordinances. The following year, that money would show up as revenue on the municipal budget. Should the need arise, the township would be able to reintroduce similar ordinances in the future, but not receive the same favorable bond repayment interest rate.

Township Administrator Denise Marabello said that each year, she goes through each item in the capital cash account with the township’s department heads to see if any of them are no longer needed.

“I don’t know if we’re really going to find $2 million that you’re going to want to cancel,” Marabello said, adding that it’s ultimately the committee’s decision on what to do with the capital cash account.

Independent of the capital cash figures, the mayor said there had been talk to only consider a tax increase if the township didn’t receive money from the state. Since the initial budget meetings, Cranbury has been told it will receive approximately $450,000 from the state in the form of energy tax receipts, which is the same as it received last year.

“Unfortunately we don’t have a guarantee on the state aid so, from a financial standpoint, I can’t make a budget based upon hopes and wishes,” said Committeeman Jay Taylor.

Mayor Cody responded that given Trenton’s political climate, the energy tax receipts would be forthcoming. Cody also characterized Taylor as “wanting to tax people.”

“It’s your position to sit there and say, ‘I’m going to make a budget based upon a press conference [made by the governor],’” Taylor shot back.

In support of the two-cent tax increase, Committeeman Dan Mulligan pointed out that other towns nearby have had ten-cent increases in recent years, while simultaneously drawing down on their surplus funds.

“Our job is not to raise taxes, but is to keep the tax rate as stable as possible,” Mulligan said. “When you have ten-cent spikes, that is not stable.”

During her presentation, Marabello explained that Cranbury’s overall assessed value has decreased by $95 million and that the average household assessment has dropped $9,000. For those homeowners with an average household assessed of $608,299, the municipal taxes will go up $88 for the year.

The four members who voted in favor of the tax increase have been consistent regarding their concern over Cranbury’s surplus depletion. Cranbury’s surplus is $4.9 million, but $2 million of that can’t be touched without adversely effecting the township’s bond rating. An additional $1 million of the surplus is put aside for potential tax appeals, leaving $1.9 million in usable surplus, of which $1.7 million will be used in 2011’s budget. The committee, including Mayor Cody, has estimated that $800,000 of surplus will be replenished in 2011, which is less than last year’s $1.4 million.

Mayor Cody has previously suggested a budget plan that would keep taxes flat and increase the surplus, but wouldn’t include an optional bond debt repayment.

The next meeting of the Cranbury Township Committee will be Monday, April 11 at 7 p.m.