Princeton Council Votes To Introduce $72.47M Budget For 2023

PRINCETON, NJ — During Monday’s meeting, Council voted to introduce a $72.47 million budget for 2023.

The budget presentation was made by Municipal Administrator Bernie Hvozdovic and CFO Sandy Webb.

The expected tax levy is around $39.7 million, which is an increase of about $1.27 million over the last year.

The budget expenditure increased by 5 percent, Webb said. Salaries and wages went up by $6780,000 for contractual and noncontractual employees, mainly due to the increase in the cost of living.

The cost of trash collection increased, as did health benefits costs. Debt service payments are also up due to the various capital improvement projects undertaken by the Municipality.

Expenditure increase was seen in the following areas:

• Group insurance for employees
• Fire Dept. Salaries and wages
• Garbage and trash
• Legal expenditure
• Pension costs
• Gas
• Park maintenance
• Police salaries and wages
• Dispatch contracts
• Sewage
• Capital improvements
• Interest on notes

The municipality saw revenue decrease in surplus, interest on taxes, fire and housing inspection fees, and delinquent taxes among other areas.

Princeton ended 2022 with a fund surplus of $18.5 million, out of which $9 million was utilized in 2023 budget.

Webb said the Finance Committee recommended a 2-2.5 percent increase in taxes.

Councilwoman Michelle Pirone Lambros said the budget increase was unavoidable this year due to economic conditions. She hopes to bring the overall increase down.

“During COVID we did not raise taxes. We were lucky to have the American Rescue Plan funding that helped. We deferred a lot of capital improvements during that time and brought over some surplus,” Pirone Lambros said.

She noted that the proposed budget was a "worst-case scenario," and officials were working to reduce the tax rate.

"We introduced it at the highest tax rate, but we are working to reduce it down to half the increase," Pirone Lambros said.

“If we can hold to the 2-3.5 percent increase, this will be in line with cost-of-living adjustments we've done in prior years.”

A public hearing for the budget will be held on April 10, following which amendments will be made.

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