Cranbury Township Committee Reviews 2011 Budget

Cranbury committee members said that the current budget process remains on track and spending is in line, however, there are some concerns for next year.

"The township would like to caution everyone that the year's upcoming budget will be a difficult one and that there is always the possibility of raising municipal taxes," said Township Administrator Denise Marabello at Monday’s committee meeting.

Marabello provided the committee and public with the 2011 municipal budget update. Through June 30, total appropriations are $4.9 million expended, versus the $5.45 million adopted budget for the first half of the year. The third and fourth quarters still remain with an additional $5.45 million left in the year's $10.9 million budget.

"The township remains financially strong, but until there is a change in the economic climate, many challenges lie ahead with the future budget," Marabello said. "I am confident that we will be able to meet these challenges head on."

According to committee members, the economic boon of commercial real estate construction along Route 130 has stopped, and property value rates have dipped in the township.

"Last year was a real eye opener for us because projecting out based on the burn rate of the surplus was unlike what we had the luxury of what we had earlier in the decade, we had an absolute collapse in new construction primarily commercial construction," said David Cook, Cranbury Township committee member.

There will be a surplus at the end of the year according to committee member James Taylor. In 2011, $3.4 million dollars in surplus money will be accounted compared to $4.9 million last year.

The rise in cost of employee benefits will also play a role on the township's economic impact, Taylor said. Medical benefits and pensions continue to rise each year and property ratables show no signs of improvement any time soon.

Taylor said that he would like to see more grant money come into Cranbury from the various township boards. While the committee would look at making potential cuts to services, public safety would be the least impacted.

According to Cook there would have to be a collaborative effort by the committee, business owners and residents to determine the best way to ensure that taxes do not go up in 2012.

"It has to be a combination of cutting cost and increasing the surplus, but we have to make some real decisions on cutting and that’s where it gets back to there's no sacred cow as well as we might experience a lower tax ratable base too," Cook said.