The final budget and tax rate will have met the requirements for adoption following two public hearings scheduled for the next regular council meeting.

Councilmembers will consider adopting both items Monday, Sept. 12, but not before residents have one final opportunity to provide input on the budget and tax rate for the next fiscal year. The public hearings will be held at 6:30 p.m. during the regular meeting.

Princeton’s current fiscal year expires Sept. 30 with fiscal year 23 beginning Oct. 1 and concluding Sept. 30, 2023.

The initial budget was presented to council during the Aug. 22 meeting, and included projections for revenues, expenditures and the proposed tax rate. 

City Administrator Derek Borg briefed councilmembers on the budget, which included an increase in both revenues and expenditures for the upcoming fiscal year.

Revenues for 2022-23 are budgeted for $19.6 million, a 29% increase compared to $15.2 million in the 2021-22 budget. Expenditures are also expected to increase 29% to $19.6 million in 2022-23 compared to $15.2 million this past fiscal year. 

For the second consecutive year, the budget is projected to be balanced.

The overall revenue from ad valorem taxes is budgeted to increase by $2.8 million to $7.4 million compared to $5.5 million budgeted for 2021-22. According to the city’s proposed budget, ad valorem taxes will constitute just over one-third, 36%, of city revenues.

Revenue from license, permit and fees is budgeted to decrease slightly to $5.3 million compared to the budgeted $5.4 million for 2021-22. Despite the slight decrease, the city projects license, permit and fees will make up 27% of revenues.

Combined, ad valorem taxes and license, permit and fees will make up two-thirds of all city revenue for 2022-23.

Over half of the city’s budgeted expenditures for 2022-23 come from public safety, which includes the police and fire departments. 

Police expenditures are budgeted at $5.1 million for 2022-23 compared to $3.97 million in 2021-22. Similarly, the fire department budget grew to a proposed $5.7 million, compared to $3.9 million budgeted for this past year.

According to the budget document, the increase is because of the purchase of additional fire apparatuses to replace older vehicles used by the department.

Other departmental budgets and city administration total $4.7 million, or around 25% of the proposed 2022-23 budget.

Additionally, councilmembers approved setting the total tax rate at $0.534543 per $100 of assessed value. The previous tax rate was $0.602549 per $100 of assessed value.

It is not the no-new revenue rate, but remains lower than the voter-approval rate meaning council does not have to order a tax rate election.

Despite the lowering of the tax rate, taxpayers are projected to see an overall increase to their tax bill for the upcoming year.

The average homestead taxable value is $309,264 for 2022, compared to $230,892 the previous year. The average tax on homesteads will be $1,653.15, an 18.8% increase from $1,391.24 last year.

Tax bills will be mailed out in October with tax payments due by the end of January 2023.

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