Warren County adopts $116.7 million budget, establishes 1% "cap bank" though levy stays flat

Warren County commissioners on March 26 adopted a $116,684,465 fiscal-year 2025 budget while keeping the county tax levy unchanged at $79.5 million and approving a resolution to establish a cap bank equal to 1% of the levy.

County CFO Kim Francisco explained the budget is funded by miscellaneous revenues and a fund balance of about $37.1 million and reiterated that "the levy is what we collect from the taxpayers that is 79 million 500 thousand dollars for 2025," the same amount collected in 2024.

The Board’s cap-bank resolution (N.J.S.A. 40A:4-45.14), adopted as Resolution 165-25, authorizes the county to preserve unused tax-cap capacity — the resolution adopted a 1% increase option amounting to $628,931 to be banked for up to two future years. Commissioner Director Jason J. Sarnoski and County CFO Francisco stressed the action is a precaution: Sarnoski said the board is "not exceeding the county tax levy limits" and called the measure "good budgeting practices." Francisco described the language as the state template used by municipalities and counties.

The commissioners said growth in county ratables helped hold the levy steady. Francisco said Warren County saw about 6% growth in equalized value year-over-year, which he said will lower the county equalized tax rate from 54.71 cents to 51.45 cents. Director Sarnoski summarized: homeowners with unchanged assessments and equalization should see an approximate 6% reduction in county taxes, though he cautioned reassessments in some towns can affect that amount.

Public participants questioned technical aspects of the levy and the cap bank during the two related public hearings. Resident Sylvia Zika asked several clarifying questions about ‘‘levy’’ and the amounts referenced; Francisco replied he did not have all figures at the podium but confirmed the levy number and explained surplus and fund-balance sources. Commissioner Deputy Director Lori Ciesla acknowledged the cap-bank terminology can be confusing to the public and said she intends to ask state legislators to reword the law for clarity. Support and criticism came from other residents: Jodee Inscho praised the move as fiscally responsible, while Suzanna Gilbert said the cap bank "is not enough for an emergency," to which Sarnoski replied, "This is as much as we can bank by law." County Administrator Alex J. Lazorisak added that some emergencies (for example, major state highways) could involve state responsibilities.

Formal action: the Board approved the cap-bank resolution (165-25), adopted tax levy cap procedures (166-25), and adopted the annual budget (169-25). Each motion was moved by Commissioner James R. Kern III and seconded by Commissioner Lori Ciesla; the recorded vote on each measure was James Kern III, Lori Ciesla and Jason Sarnoski: yes.

Why it matters: commissioners said holding the levy steady while preserving limited cap flexibility protects taxpayers now while keeping a modest contingency available for up to two future years. The board emphasized pay-as-you-go capital funding and said the county will continue planned investments without borrowing.

Details and next steps: the county said the cap bank amount would lapse if unused after two years. The adopted budget documents were posted on the county website and are available under state budget-advertising rules. Commission leaders said they expect the county to be debt-free by July, the result of recent fiscal strategy and prior decisions.