WEST CAPE MAY — The Board of Commissioners introduced the borough’s 2026 budget March 25 with a tax increase that is a hair shy of 12 percent.
If approved, it would raise the current tax rate of 43.1 cents per $100 of assessed valuation by 5.17 cents to $48.3 cents per $100.
The expenses in the $4.15 million budget increased $434,484 23 percent from $1.85 million to $2.28 million because of substantial increases in health benefits, trash collection and coverage from the Cape May Police Department.
To offset the highest expenses, the proposed spending plan increases the amount to be raised by taxes by $339,202 — a 14.5 percent jump to $2.674 million.
The tax rate increase of 5.17 cents represents an 11.99 percent hike for taxpayers.
West Cape May ratables increased by $12.3 million to $554 million.
The commissioners introduced Ordinance 659-26, which allows the municipality to exceed the municipal budget appropriation limits and to establish a cap bank.
“Prior to us being able to take up the resolution to introduce the budget, we need to pass this ordinance to allow for additional capacity,” Chief Financial Officer Frank Donato said. “Each year, the state assigns what they feel is a cost of living that’s appropriate to this past year. They would assign a 2 percent increase off the bat. The ordinance adds an additional 1.5 percent, so the cost of living is 3.5 percent.”
Donato explained that many increases on the expenditure side of the budget exceeded the 3 percent cap and it was a challenge to get the budget to comply with the law. After the ordinance was introduced, Donato announced that the budget was fully compliant.
There is an available surplus of $1,542,000, and $700,00 of it will be used as revenue toward the budget. There is $842,000 in reserve fund balance that can be used for future budgets, emergencies and cash flow to the municipality.
Mayor George Dick further explained the three driving factors for the budget’s increase.
The cost of West Cape May’s new contract with the Cape May City Police Department increased by 33.5 percent to $745,389.
Trash and recycling tipping fees have increased 70 percent, or $221,000, due to a bidding error that had the borough paying less than required for the past five years.
Finally, employee group health has increased 50 percent, or $383,318.
Dick explained that the commissioners have analyzed all avenues and options for the expenses, and these are the outcomes.
The commissioners approved the resolution to introduce the 2026 municipal budget.
By JULIA DIGERONIMO/For the Star and Wave
