VILLAS — Township Council adopted its 2026 budget April 20 with no increase in the local tax rate.
The $36.2 million spending plan is down almost $3 million from this year and includes a tax rate of 63.3 cents per $100 of assessed value. The tax levy is $24,016,289, up $142,208.
The township’s assessed valuation increased by more than $25 million to $3.794 billion and the township ended last year with its highest surplus ever of $10,691,503, helping keep the tax rate stable. Township Council is applying $5.44 million in surplus to this year’s budget.
Township Manager Mike Laffey said during the March 2 meeting that the surplus increase was largely due to new revenues from occupancy tax, interest earnings and construction code fees.
“I feel confident using this amount of surplus because we’re within the parameters of our fund balance policy,” he said.
The tax rate collection for 2025 was 98.86 percent, which Laffey noted helped add more than $1.2 million to the surplus. The township is $568,193 below the tax levy cap and $355,811.30 below the legal spending cap.
Auditor Leon Costello said the township was financially sound and no changes were made to the budget.
“I do have information about the budget beyond the zero percent increase, to put some awareness out,” Mayor Frank Sippel said. “I also hear residents say they pay high taxes. If you live in New Jersey, you definitely pay high taxes.”
Sippel said Council has not increased the tax rate in the past three years.
“There are 560 municipalities in New Jersey and Lower Township has the 19th-lowest tax bill in New Jersey,” Sippel said, adding that the only municipality in Cape May County that has a lower tax bill is Woodbine, which has no police department and other services.
By RACHEL SHUBIN/Special to the Star and Wave
