Princeton property owners will see a one-cent increase in the municipal property tax rate, under the proposed $77.9 million municipal budget for 2025.
The budget was introduced at the Princeton Council’s March 10 meeting. A public hearing and final budget action is set for the Council’s April 14 meeting.
The municipal property tax rate will increase from 56 cents per $100 of assessed value to 57 cents. The owner of a house assessed at the town average of $856,944 for property tax purposes will pay $4,941.22. This is an increase of $133.76 over the prior year’s municipal property tax.
A Princeton property owner’s tax bill includes the municipal, library and open space taxes, plus the school district property tax and the Mercer County property and open space taxes.
The proposed 2025 municipal budget expenditures increased by 3%, or $2.3 million, CFO Sandra Webb told the Princeton Council.
Salaries and wages increased by $959,000 to account for the new position of associate director of planning, and the overlap in planning administrative coordinator and the zoning officer in anticipation of retirements, Webb said. Annual salary increases also are included.
The administration reduced some department budgets by $874,000, but there were budget increases in some areas, such as group insurance, the Stony Brook Sewerage Authority, and garbage and trash collection costs, she said.
There was a drop of $256,000 in the Municipal Relief Fund Act, which was admittedly a one-time revenue, she said. The payment in lieu of taxes from Princeton Community Village decreased by $208,000.
However, there were increases on the revenue side. This includes $462,000 in interest on investments and deposits, the hotel and motel tax – which will continue to increase with the addition of the new Graduate Hotel on Spring Street.
The main source of revenue to support the budget is property taxes. The amount to be raised by taxes is $41.4 million.
Miscellaneous revenue is expected to generate $19.2 million. This includes revenue from fees and permits, municipal court costs, and the hotel and motel tax.
The town will use $11.7 million in surplus funds to help balance the budget. The surplus account contained $25.2 million on Dec. 31, 2024.
Princeton University will contribute $5.4 million as its fair share toward the budget, plus an additional $200,000.
Voluntary contributions from the Institute for Advanced Study and the Tenacre Foundation are $250,000 and $500,000, respectively.
AvalonBay Properties will make a $991,452 payment in lieu of taxes on its development on Thanet Circle, off Terhune Road. Its 2024 payment in lieu of taxes was budgeted at $599,168.
Additional payments in lieu of taxes include $100,000 from Elm Court and $121,988 from Princeton Community Village.
Princeton will receive $2.4 million in state aid.
On the spending side, $9 million has been allocated to the Princeton Police Department, to include salaries for 9-1-1 dispatchers.
The budget earmarks $2.1 million for the Princeton Fire Department, inclusive of salaries and wages, fire hydrant service, fire facilities and miscellaneous other expenses.
The budget sets aside $3.3 million for the Department of Public Works, which includes road maintenance and repair, public buildings and grounds, vehicle maintenance and maintenance of sewerage facilities.
Finally, $2.4 million is included in the budget for pension contributions to the Police and Firemen’s Retirement System (PFRS) and $1.9 million to the Public Employees Retirement System (PERS).
