Local officials in New Jersey are calling on Princeton University to increase its payments in lieu of taxes to aid strapped local governments, Bloomberg reports.

The university, whose $12.6-billion endowment is the fourth-highest among U.S. institutions, would owe about $28-million if all its property in Princeton Borough and Princeton Township were taxed, according to Kevin Wilkes, a member of the borough council and a Princeton graduate.

The university made a $1.2-million voluntary payment last year under an agreement due to expire in 2011 and paid $9.8-million in sewer fees and taxes on commercial properties it owns, such as parking lots and staff-member housing. Officials say the university already contributes significantly to the financial well-being of the area.