Peters council is expected to gather public opinion tomorrow on a $19 million preliminary budget that would hold the property tax rate at 12 mills for the 22nd year.

A hearing on the budget will be held at 7:30 p.m. in the municipal building.

The spending plan represents an increase of about 35 percent due largely to recreation and transportation expenses, such as a major reconstruction of the Valleybrook and Route 19 intersection and the construction of several new ball fields in Peterswood Park.

Revenues, which increased this year, are expected to dip by more than $1 million next year to about $13.4 million. The nearly $5.6 million deficit is to be made up through a $5 million bond issue and an estimated surplus of about $7 million.

Though new home construction was down slightly this year, assessed value and real estate transfer tax revenue were unexpectedly high, said township Manager Michael Silvestri.

"That was a surprise," he said of increased tax revenue. "The number of home sales are down."

Housing starts have withered from a high of about 208 in 2004 to slightly less than 100 this year.

Several large-volume home contractors, including Heartland Homes and Ryan Homes, continue to invest in the township, with six new housing developments between them.

Real estate transfer tax was $500,000 higher than the $1 million anticipated because of the sale of several large commercial properties, Mr. Silvestri said, and assessed value was up about $9 million to more than $309 million.

Peters receives more than $309,000 for each mill of property tax.

On the expenditure side, the township hopes to hire a new police officer for increased traffic enforcement and a new librarian, but Mr. Silvestri said those decisions will be deferred until at least May to determine whether the township can afford new personnel.

Mr. Silvestri said council may decide to scrap or scale down some of the recreational projects, depending on feedback from the public.

The township plans to spend about $3 million over two years to develop 26 acres adjacent to Peterswood Park that it bought from the Bruni family last year.

The plans include two new girls softball fields, an all-purpose field and two practice fields. If the township can't afford the new fields, Mr. Silvestri said, artificial turf may be installed on existing fields along with other improvements.

Other major expenditures in the budget include three new police vehicles, $1.4 million in road repaving projects and more than $1.5 million for the Valleybrook Road/Route 19 intersection project and the replacement of a bridge over Bebout Road.