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Sussex County Commissioners Adopt 3.5% 'Cap Bank' to Cover Unanticipated 2025 Costs
Summary
The Sussex County Board of County Commissioners on March 12 adopted a resolution establishing a 3.5% appropriation 'cap bank' for the 2025 budget, allowing the county to set aside an extra 1% over the standard 2.5% increase for unanticipated expenses; the measure was adopted after a public hearing with no speakers.
The Sussex County Board of County Commissioners voted March 12 to adopt a resolution establishing an appropriation "cap bank" that permits the 2025 county budget to increase appropriations by up to 3.5% over the prior year, subject to statutory exceptions.
County counsel explained the purpose of the measure during the meeting, saying the state law allows governing bodies an automatic 2.5% cost-of-living increase to appropriations and that the 3.5% bank saves the additional 1% for years with unanticipated expenses. "The CAP Bank is simply allowing the county to save that 1% delta and set it aside to make sure that it doesn't run, or default on, its expenditures," Speaker 14 said.
The resolution had been introduced at the board's Feb. 13 meeting and advertised in the New Jersey Herald on Feb. 23. Speaker 4 opened the required public hearing at the March 12 meeting; no members of the public spoke on the measure. Speaker 5 moved for final adoption, and the motion carried. The board also authorized the clerk to advertise the resolution as finally adopted and post notice in the county administrative center lobby.
County officials presented the cap bank as a tool to protect the county budget against spikes in costs such as pension increases, health-insurance premiums or utility rate changes. County counsel cited a recent state health-benefit plan increase (16.3%) and cited pending utility cost increases under review by the New Jersey Board of Public Utilities as examples of unpredictable pressures the cap bank could help smooth.
The board did not change tax rates as part of the vote; counsel reiterated that the cap bank affects appropriations and available contingency, not an automatic tax increase. The clerk was authorized to advertise the final adoption, and the board recorded the motion and subsequent roll call in the meeting minutes.
Next steps: the adopted resolution will be posted by the clerk as advertised and reflected in final budget documents ahead of the county's upcoming budget vote and related hearings.
