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Council introduces 2025 municipal budget; municipal tax increase limited to 1.96% under levy cap
Summary
Council President McGowan introduced the borough's 2025 municipal budget at the April 14 meeting, reporting a proposed municipal tax increase of 1.96% driven by higher insurance, utilities and sewer costs and constrained by the state 2% levy cap; the budget was introduced for public review with a scheduled presentation and hearing.
Rutherford’s Mayor and Council on April 14 introduced the calendar year 2025 municipal budget and scheduled further public review and a hearing.
Council President McGowan, speaking as finance liaison, said the borough faced significant cost increases while constrained by New Jersey’s 2% property tax levy cap. He gave the following line‑item increases: employee group insurance up 12 percent, utilities up about 10 percent, sewer service charges up about 9 percent, and salaries and wages increases averaging about 2.8 percent. Given those pressures, the council limited the proposed municipal tax increase to 1.96 percent for municipal purposes, McGowan said. He emphasized that the figure does not include school or county levies, which are outside borough control.
“We believe we have developed a fair and reasonable budget to maintain the same level of services to our residents and still be fiscally prudent,” McGowan said, noting negotiations among council members, the CFO and borough administration.
Procedure and next steps: The borough administrator said a budget presentation will be given at the next meeting (April 28) and a formal public hearing is scheduled for May 12, at which residents will be able to comment before the council votes on final adoption.
Why it matters: The introduced budget sets municipal spending and the local tax rate for borough services if adopted. The administration highlighted inflationary pressures on major line items and the constraint of the state 2 percent levy cap in shaping the final proposal.
What was not specified: The transcript did not list the budget’s total dollar amount, department‑level allocations, or the projected municipal property tax rate in dollars per $100 of assessed value; those details will be part of the public budget materials and upcoming presentation.
