CAPE MAY — City Manager Paul Dietrich provided an overview of the 2026 capital budget, totaling $4.48 million, and plans to complete some before summer.
City Council introduced four bond ordinances Feb. 17 with a second reading and public hearing set for March 17.
“This puts us in a timeline to get some of these projects moving and have them out to bid before summertime,” Dietrich said, adding it would also help keep projects moving through the year.
Dietrich said he had met with each council member to discuss capital plans, including water and sewer projects, as well as general improvements.
“We need a little bit more funding after the engineer went through preparing the specs, beyond what we had the $2 million from last year’s bond,” Dietrich said. “We need more to make sure we have enough contingency to complete the project.”
In the 2026 budget, $987,000 is allocated to security cameras, repairs to municipal buildings and city vehicles, police safety equipment and fire safety equipment.
“I think we’ve been prudent over the last several years that we’re putting $987,000 of capital work, projects and equipment into the budget,” Dietrich said.
The city has budgeted $3.78 million for general capital items, including: police building future/technology, Convention Hall renovations design, Lafayette Street Park, ADA grant match, Bank Street retaining wall, Office of Emergency Management (OEM) automated weather warning system, equipment and vehicles, sidewalk project phase II, road paving project, traffic safety improvements and bond costs.
Retaining wall, equipment
“The Bank Street retaining wall is a project we funded last year when we started it, but we need some more seed money to continue the engineering phase of the project,” Dietrich said, adding that the retaining wall will connect at the bridge on Elmira Street over Cape Island Creek and run down behind the substation.
Dietrich noted that the Bank Street area floods often, affecting daily commuters and residents along Elmira Street.
“We get a full moon and high tide, even without a good rainstorm, and that street floods,” he said. “We’ve done a good job putting tideflex valves to lessen the impact, but once you hit a moderate stage level of flooding, those banks top over and it goes into the street.”
An OEM automated weather warning system would preclude the city from sending someone to check whether there is water in the street, and they would set off the flood sirens.
“This would have an automatic sensor sense the water and be able to shoot the message to residents as they would want them,” Dietrich said.
In addition to the automated weather system, other equipment purchases the city has under the budget include a new ambulance.
“We’re looking at $1.385 million [for equipment] including a new ambulance, which has a three year lead time,” Dietrich said. “If you recall, you authorized an ambulance for purchase before I became city manager, and we still haven’t received it.”
Another vehicle that needs to be replaced is the beachfront recycling truck, which Dietrich said is smaller than the residential recycling trucks. It picks up recycling around the mall and promenade.
“We’re going to need to upgrade some of our police vehicles; a hook and lift truck that Public Works uses, and the mechanic shop needs a tire balance lift machine, so they can do the work on the tires themselves,” Dietrich said.
Police and cameras
In terms of police technology, Dietrich said officers need to update their tasers so they have a safer way to subdue and contain criminals.
“We’re going to continue to expand our security cameras throughout the city to help enable our police force to make sure we’re keeping a good eye on our buildings and facilities to keep them safe,” Dietrich said.
Additional funding is needed for the new police building.
“We need to add some construction costs, furniture and technology that was still not programmed into the funding last year,” he said.
Dietrich noted the city is going to apply for a grant from the county for the completion of Lafayette Street Park, which he noted will have to be timed with the work and completion of the police building.
Sidewalk, road projects
The city’s sidewalk project includes replacing deteriorated concrete and resetting uneven brick/bluestone pavers. Under the 50/50 program, the homeowner pays for half the repair cost and the city pays the other half.
“We had a pre-construction meeting today to kick off our sidewalk project,” Dietrich said. “This will be a second phase of that to continue on and we’re also looking at a road paving project here, for roads that do not need any utility work, and a project to do safety improvements.”
Dietrich said the streets to be paved under the capital project include New Jersey Avenue, Perry, Grant, Broad and Elmira streets. The city is also looking into improvements on Elmira and Bank streets, as well as the Decatur Street corridor, to improve bike safety.
“We’re also looking at Stockton Avenue and Queen and Jefferson streets, what opportunities we might have in those corridors,” he said.
Additionally, once the 2026 budget is adopted, the city will be able to put the ADA compliance projects at the Cape May Tennis Center and the Physick Estate out to bid.
“We may wait and have this project start in the fall, so we’re not disrupting the tennis club or Physick Estate during the high season,” Dietrich said.
Water sewer projects
In 2025, the city issued a bond for water and sewer projects through the New Jersey Infrastructure Bank (NJIB). Dietrich said a supplemental bond is needed to amend the 2025 water/sewer bond to cover a change order that increases the contract by $835,603. It would also add Wenonah and Swan avenues to the project.
“This will maximize the principal forgiveness from the NJIB and work with the state Department of Transportation grant of $110,733,” Dietrich said.
He noted the city is ready to go out to bid on the water tower, but believes they might need more funds to finish and cover construction administration costs for the project.
Other projects within the budget include upgrades and improvements to the promenade speakers, painting at City Hall, and design and engineering work.
By RACHEL SHUBIN/Special to the Star and Wave
