For the first time in the current budget cycle, councilmembers received figures for city revenues and expenditures for the upcoming year.

City Administrator Derek Borg presented the fiscal year 2023 proposed budget during the Monday, Aug. 22, regular meeting.

Fiscal year 2023 begins Oct. 1 and runs through Sept. 30, 2023. 

Revenues for the general fund are budgeted at $19.6 million for the 2022-23 budget, a 29% increase from $15.1 million for the current fiscal year. 

Expenditures for the general fund are budgeted at $19.6 million, a 29% increase from $15.1 million in the current fiscal year’s budget.

With both revenues and expenditures the same, the general fund is balanced in the proposed budget. The city is also projecting a remaining fund balance of $8.3 million.

Ad valorem taxes and grants are two categories with the largest gains, according to the proposed budget. Property tax revenues are increasing to $7.3 million from the $5.4 million budgeted for the current fiscal year.

Grants were budgeted at $41,783 in the FY 22 budget, but are receiving a hefty increase to $1.3 million in the upcoming budget.

Of the $4.4 million increase to expenditures, about $3 million is tied to increases in public safety funding, which includes both the fire department and police department budgets.

Borg said the city plans to do a market-rate adjustment to the salaries of fire department employees in addition to hiring two new police officers. The city also plans to begin paying for half the cost of insurance for dependents of city employees, which could cost around $330,000.

“This is important; a lot of our employees struggle with purchasing insurance from outside providers,” Borg said. “We do see folks that we would like to hire struggle with that.”

For the full story, see the Aug. 25 issue of The Princeton Herald.