Ordinance 2026-05
Ordinance 2026-05
2026-05 "Ordinance to Exceed the 2026 Municipal Budget Appropriation Limits and to Establish a CAP Bank. Further Consideration and Public Hearing on May 26, 2026."
Events
Upcoming: May 26, 2026 Township Committee Meeting - Public Hearing and Potential Adoption of Ordinance 2026-05
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Frequently Asked Questions
A: Legislative caps limit how much the township can increase spending and the tax levy. For 2026, the maximum in-cap spending increase is $1,247,520, and the maximum levy increase is $2,398,633 (8.4% increase, actual is 8.3%). Unforeseen increases in certain expenses like health insurance and pensions are excluded from these caps.
A: Establishing a CAP Bank allows the Township to retain unused budget authority in a given year and use it in either of the next two succeeding years. This flexibility can help manage budget constraints and ensure the availability of funds for future needs.
A: Legislative caps limit how much the township can increase spending and the tax levy. For 2026, the maximum in-cap spending increase is $1,247,520, and the maximum levy increase is $2,398,633 (8.4% increase, actual is 8.3%). Unforeseen increases in certain expenses like health insurance and pensions are excluded from these caps.
A:The public hearing for further consideration of this ordinance is scheduled for May 26, 2026.
A: This ordinance is in accordance with the Local Government Cap Law, N.J.S.A. 40A:4-45.1 et seq., which permits municipalities to exceed their budget limits under certain conditions, such as through the approval of an ordinance.
A: If the ordinance is not approved, the Township will be limited to a 2% increase in its budget as per state law, which may affect the funding and services available to the community in 2026.
A: The outcomes of the public hearing and the vote will be made publicly available through official channels, including notices posted in municipal buildings and on the Township's website.
ORDINANCE 2026-05
Ordinance to Exceed the 2026 Municipal Budget Appropriation Limits and to Establish a CAP Bank.
Further Consideration and Public Hearing on May 26, 2026.
WHEREAS, the Local Government Cap Law, N.J.S.A. 40A:4-45.1 et seq., provides that in the
preparation of its annual budget, a municipality shall limit any increase in said budget to 2%
unless authorized by ordinance to increase it to 3.5% over the previous year’s final
appropriations, subject to certain exceptions; and
WHEREAS, N.J.S.A. 40A:4-45.15a provides that a municipality may, when authorized by ordinance,
appropriate the difference between the amount of its actual final appropriations and the 3.5%
percentage rate as an exception to its final appropriations in either of the next two succeeding
years; and
WHEREAS, the Township Committee finds it advisable and necessary to increase its CY 2026 budget by
up to 3.5% over the previous year’s final appropriations, in the interest of promoting the health,
safety and welfare of the citizens; and
WHEREAS, the Township Committee hereby determines that a 3.5% increase in the budget for said year,
amounting to $508,337.58 in excess of the increase in final appropriations otherwise permitted by
the Local Government Cap Law, is advisable and necessary; and
WHEREAS, the Township Committee hereby determines that any amount authorized herein above that is
not appropriated as part of the final budget shall be retained as a cap exception to final
appropriation in either of the next two succeeding years.
NOW, THEREFORE, BE IT ORDAINED by the Township Committee of the Township of Hillsborough, County of
Somerset, State of New Jersey, a majority of the full authorized membership of the Township
Committee affirmatively concurring, that in the CY 2026 budget year, the final appropriations of
the Township of Hillsborough shall, in accordance with this ordinance and N.J.S.A. 40A:4-45.14, be
increased by 3.5%, amounting to $1,186,121.02 and that the CY 2026 municipal budget for the
Township of Hillsborough be approved and adopted in accordance with this ordinance; and
BE IT FURTHER ORDAINED, that any amount authorized herein above that is not appropriated as part of
the final budget shall be retained as an exception to final appropriation in either of the next two
succeeding years; and
BE IT FURTHER ORDAINED, that a certified copy of this ordinance as introduced be filed with the
Director of the Division of Local Government Services within 5 days of introduction; and
BE IT FURTHER ORDAINED, that a certified copy of this ordinance upon adoption, with the recorded
vote included thereon, be filed with said Director within 5 days after such adoption.