Sayreville adopts ordinance to establish municipal "cap bank" allowing budget to exceed 2.5% levy cap

The Borough of Sayreville Mayor and Council on a May 2025 regular meeting adopted an ordinance to amend municipal budget appropriation limits and to establish a municipal “cap bank,” allowing the borough to exceed the normal 2.5% tax levy cap under state rules.

The ordinance, introduced and advanced on second and final reading at the meeting, passed on a roll-call vote after a public hearing. Council members closed the public hearing and moved to adopt the ordinance as advertised by law.

The measure matters because exceeding the 2.5% cap permits the borough to increase the municipal tax levy beyond the automatic limitation set by state rules; proponents say it preserves fiscal flexibility while critics say it can raise costs for residents.

During the public comment period, resident Jim Robinson pressed the council on several budget specifics and on perceived management choices. Robinson highlighted recent outside grant awards while questioning why the borough still needed to exceed the cap: “I saw that we just got a $1,600,000 grant from the National Fish and Wildlife Fund,” he said, and asked whether grant opportunities and other revenue sources had been fully considered before moving to exceed the cap. He also raised concerns about personnel and contract costs, saying there had been an increase for a “mayor’s chief of staff” line and asking whether that or hiring multiple municipal engineers contributed to the need to exceed the cap. Robinson asked for written answers to his questions.

Mayor Kennedy O'Brien (Mayor of the Borough of Sayreville) acknowledged the questions and told speakers to contact the mayor’s office for follow-up, saying staff would “work on them.”

Council members also noted that the ordinance is a commonly used municipal tool to “bank” unused levy capacity. At the meeting one council member said they would vote against the measure after learning the borough was already using some banked capacity; the ordinance nonetheless passed in the roll-call vote.

Discussion points raised during public comment included: - Recent grants and project revenues mentioned by residents, including a $1.6 million grant from the National Fish and Wildlife Foundation (cited by a speaker). (Speaker: Jim Robinson) - Questions about appointments and personnel costs, including references to additional mayoral aides and two municipal engineering contracts. (Speaker: Jim Robinson) - Concerns about cuts to programs such as senior services and crossing-guard funding, and about trash-collection costs associated with new multifamily housing. (Speaker: Jim Robinson)

Council and staff response/direction included: - The mayor’s office committed to follow up and provide answers to questions raised during public comment. - Council discussed the technical purpose of a cap bank (to bank unused levy capacity for future use) and confirmed the ordinance followed required advertising and public hearing procedures.

Formal action: - Action: Adopt ordinance amending municipal budget appropriation limits and establishing a cap bank (calendar year ordinance referenced as “ordinance 16, calendar year 2025”). - Outcome: Approved by roll-call vote at the meeting. One council member announced a negative vote during the roll call. - Notes: The ordinance was adopted on second and final reading and advertised according to law; the council did not attach additional conditions on its use at the time of adoption.

Background and next steps: The council’s adoption permits the borough to exceed the 2.5% levy growth cap when the governing body chooses to do so and when state rules are followed. Residents who raised questions at the meeting were told staff would provide additional information and answers following the meeting; the mayor directed those requesting information to contact his office.