Eatontown The Mayor and Council adopted the 2025 municipal budget Wednesday after a public hearing and roll-call votes.

The budget keeps the borough within the states appropriation and tax-levy caps, officials said, but a final decrease in certified property valuations raised the boroughs estimated tax rate from 49.8 cents to 50.0 cents per $100 of assessed value, a change municipal staff described as a two-tenths of a cent technical increase.

The change matters to property owners because the drop in total net valuation means the same amount of municipal taxes must be spread over a slightly smaller tax base. Staff said the net effect for an average assessed home would be roughly a $0.38 increase, and that over the past three years the average assessed home has seen a net municipal-tax decrease of about $31.

Staff presentation and council discussion

A staff presenter identified in the meeting as Bob walked the council and the public through the numbers, explaining that the boroughs net valuation decreased between preliminary (November) figures and final certified values. He said residential valuations fell by about $7.8 million, commercial valuations fell by about $3.38 million and industrial valuations decreased by about $100,000, and that these shifts changed the percentage mix of taxable value among property classes.

Bob summarized the practical outcome: "the tax rate will go up to 50 cents from 49.8 cents per 100. That's two-tenths of a cent. And for an average assessment, that would be an increase of 38 cents." He also emphasized that the borough remains under the appropriation cap and under the tax-levy cap (the often-discussed 2% cap). Council members asked staff to confirm calculations and to explain how breakeven valuation changes would affect different properties.

Public hearing and comments

During the public hearing, residents asked for clarifications about average assessed values, how the municipal portion of property taxes compares with county and school levies and how the 2% statutory cap affects hiring decisions. One resident identified in the record as Bob Berg, who also serves as the councils liaison to the Board of Education, noted the shared-services and field-maintenance relationships between the borough and the school district.

Council action and related items

The governing body voted on several related resolutions connected to the budget: an ordinance adjusting the boroughs appropriation cap (Ordinance O5-25) and procedural resolutions authorizing the CFOs budget self-examination and reading the budget by title. The council then moved to adopt the final municipal budget for 2025 by roll-call vote.

The council also reviewed a capital amendment (Resolution 1-33-2025) to include $2,000,000 in federally awarded funds in the capital budget; staff said the funds come from a federal source administered through the U.S. Department of Housing and Urban Development (HUD) and that the borough must bond and account for the federal grant in the capital plan to use it.

Why it matters

The adopted budget determines municipal services for the year and sets the municipal share of property tax bills residents will receive. Officials framed the budget as tightly managed and remaining below statutory caps, while residents raised questions about service levels and long-term capital needs.

Looking ahead

Staff said there are no technical amendments to the adopted budget document beyond the valuation and tax-rate calculations. Council members asked that the administration continue public outreach explaining how the budget affects property owners and how borough and school levies combine on tax bills.