PrincetonUniversity
A Princeton Profile, 2004-05
Town/Gown Relations (cont.)
Community Contributions 2003-04
Property tax payments. The University owns approximately 4,000 acres for commercial and academic use in several central New Jersey municipalities, with significant holdings in Princeton Borough, Princeton Township, West Windsor Township, Plainsboro Township, and South Brunswick Township. Most of the academic properties are located in Princeton Borough and Princeton Township, which serve as hosts to the University's main campus lands (500 acres).
• The 2003-04 property and sewer taxes in the above-listed communities amounted to approximately $7.2 million.
• The University was the largest taxpayer in both Princeton Borough and Princeton Township, amounting to approximately $7 million in property and sewer taxes in these two communities.
• In Princeton Township, the University paid $3.379 million in property and sewer taxes ($2.931 in property taxes; $448,000 in sewer taxes).
• In Princeton Borough, the University paid $3.623 million in property and sewer taxes ($2.614 in property taxes; $1.009 million in sewer taxes). In the Borough, the University and one other charitable non-profit institution are in a special ''large-user'' category of water usage and pay sewer taxes at a rate that is 3.5 times the rate paid by a homeowner.
Voluntary property tax payments on University housing. The total tax payment in both Princeton Borough and Princeton Township included hundreds of thousands of dollars in taxes on housing for faculty, staff (including the official residence of the University president), and graduate students. This is housing that might qualify for tax exemption under New Jersey state law. Taxes were paid in full on these residential properties -- voluntarily -- in order to ensure that the public school system would be compensated for school-aged children who might have dwelt in University-owned housing. In Princeton Borough, for example, it is estimated that the University pays $1.9 million in taxes on properties that might qualify for tax exemption under New Jersey state law.
Property tax payments on certain athletic facilities. The University paid more than $500,000 in property taxes on certain athletic facilities, including Princeton Stadium.
Removing buildings from the tax rolls. The University's policy is to remove a building from the tax rolls only when 100 percent of the building is used for educational purposes. This is a voluntary gesture, because state law exempts colleges and universities from paying taxes on any portion of a building used for academic purposes. In addition, when a University property is removed from the tax rolls (a 100-percent academic building), the University, instead of abruptly ceasing all payments, will phase out or pay down the tax payments over a 10-year period. Again, this is a voluntary, and not a mandated, procedure.
Payments for infrastructure improvements. The University spent approximately $150,000 for maintaining 8.5 miles of University-owned but publicly used roads. In addition, the University paid a $16,000 electric bill for lighting Prospect Avenue. During the past decade, the institution has spent more than $2 million on crosswalk and road improvements on both University-owned and publicly used roads.
Fee payments. In addition to taxes, the University spends a considerable amount of money in state and local government fees for permits, inspections, et cetera. This year it amounted to approximately $1.3 million.
Payments for maintenance of and improvements to publicly used facilities. The University annually spends hundreds of thousands of dollars for the maintenance of University-owned but publicly used facilities such as McCarter Theatre, an internationally renowned, Tony-award-winning regional arts facility. The University's annual contribution to the maintenance of McCarter's facility is valued at nearly $700,000. Princeton University also contributed $9.4 million toward the construction of the new Berlind Theatre addition to McCarter; this amount included a several-million-dollar gift from Roger Berlind. A few years ago, the University paid more than $2 million to renovate the Princeton Garden Theatre, the borough's only movie theater. Its renovation was a major contribution toward the vitality of the downtown area and the quality of life for Princeton residents. Also, the upkeep of and renovations to the University train station, home to the ''Dinky'' shuttle train, including the construction of an adjacent parking lot, have cost the University more than $1.2 million since 1985. As well, the Historical Society of Princeton pays no rent to use a University-owned building on Nassau Street in the heart of Princeton Borough. At current rental prices, this space is worth about $70,000 per year.
Voluntary contribution to municipality. The University makes an annual, unrestricted, voluntary cash contribution to Princeton Borough. In December 2003, this contribution amounted to $281,830, which consisted of $200,000 as a general donation plus $81,830 made on behalf of the University-owned McCarter Theatre property. This contribution was, of course, in addition to the cash contribution of hundreds of thousands of dollars the University made to each municipality when the University voluntarily left certain residential properties on the tax rolls. The University has negotiated a new contributions agreement with the borough. The agreement calls for $300,000 in 2004; $350,000 in 2005; and $400,000 in 2006. The University also will continue to make its annual contribution on behalf of McCarter Theatre; the municipal portion of the property taxes for McCarter is anticipated to go up considerably as a result of the multimillion-dollar addition to the theater; the upcoming contribution on behalf of McCarter is anticipated to be $141,393, therefore next year's voluntary contribution to the Borough will be $441,000. Also, the University will continue to voluntarily leave those properties on the tax rolls that may contribute school children to the local school district.
Affordable housing contributions. The University pays both Princeton Borough and Princeton Township a contractual contribution earmarked for affordable housing. An agreement for both communities resulted in the following donations to the two communities' affordable housing funds: $80,000 in 2001, $90,000 in 2002, $100,000 in 2003; $110,000 in 2004; $120,000 in 2005. By the end of this year, the University's contributions to affordable housing through both cash and land gifts will amount to an estimated $1.3 million since 1990.
Service support and special gifts, 1995-2004. The University has contributed a significant number of gifts to the municipalities and many other community organizations, including:
• $1.2 million to the United Way since 1995. This figure includes the contributions from faculty, staff, and retirees from the main campus and the Princeton Plasma Physics Laboratory (PPPL), and the University's institutional match each year of 10 to 15 percent of employee contributions; for the 2003 campaign, the University match was $23,700.
• $1 million for cultural enrichment programs for the children of 9/11 victims and scholarships for students at the John Jay College of Criminal Justice, which trains firefighters and police officers.
• $610,000 to assorted area charities in grants and memberships (the University has donated approximately $70,000 per year).
• $500,000 to the Princeton Public Library.
• $500,000 to Princeton Regional Schools.
• $470,000 to the University Medical Center at Princeton (which is not part of Princeton University), including capital campaign gifts and annual contributions to its operating budget.
• $450,000 for emergency services, fire, and first aid (a $40,000 annual gift), including the purchase of a new rescue vehicle in 2001 for $155,000.
• $300,000 to Princeton Borough for park redevelopment at Monument Drive.
• $282,000 to Princeton Township for infrastructure and sewer projects.
• $150,000 to the Trenton Economic Development Corporation.
• $150,000 to the Borough of Princeton for the Downtown Library Plaza Redevelopment.
• $100,000 to the Arts Council of Princeton for a new building project.
• $100,000 to Princeton Township for open space preservation at the Institute Woods.
• $50,000 to the Princeton YWCA capital campaign.
• $50,000 to the Princeton Charter School.
• $30,000 to Princeton Community Housing for the expansion of Elm Court.
• $30,000 to the community New Year's Eve celebration.
• $25,000 to the Princeton Regional School Foundation.
• $2.5 million in in-kind donations to various community nonprofit groups and the municipality -- excluding the McCarter Theatre and the University Medical Center at Princeton. For example, the University established and still provides free Internet access and server use to the Princeton public schools, the library, senior citizen facilities, and municipal facilities. In addition, the University annually donates space and services to dozens of organizations (such as the Spirit of Princeton Fourth of July fireworks and the June Fete to benefit the University Medical Center at Princeton, both of which are held on University athletic fields). A significant in-kind contribution is made to Princeton High School students who are allowed to enroll in University classes if they have excellent academic records and have completed the curriculum in the high school (at current tuition costs for 45 young people, this gift is worth an estimated $170,000 annually). Also, this year the University committed to an extensive Princeton Township reforestation program, planting hundreds of trees both on and off of University property, at a cost of $450,000.