Princeton Common Council approves cumulative fund rate increase

Clerk Treasurer Mindy Brines reported that when the county adopted the County Option Income Tax, it dropped the rate from .05 to .04 percent.

“This ordinance reestablishes it back to the previous .05 percent,” Brines said.  

As a result, the cumulative capital development fund would be underfunded by $17,000.

By passing the ordinance, the fund will reflect the 5 percent of the budget already allocated for the previous year. The increase will not affect those currently at a tax cap, but those who have not reached the tax cap will have an increase of .01 percent.

“It will be a minimal increase for those who have not hit their cap-— a fraction of one penny, because you are taking a small amount and spreading it over many people,” said Princeton Board of Works member Bruce Fisher.

The CCD fund is used as a support for the general fund for things like fuel costs for city departments. The second reading of the ordinance is on the agenda for the next Princeton Common Council meeting.