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Red Bank moves to correct certified tax rate after reappraisal error, sets FY2026 general revenue rate at $1.1306 per $100
Summary
City staff told the commission an earlier certified tax rate was set incorrectly after the 2025 reappraisal; the commission approved an ordinance setting a tax rate of $1.1306 per $100 for FY2026 (first reading) to align budgeted revenue, though the city cannot collect the marginal difference because bills already mailed.
The Board of Commissioners of the City of Red Bank approved on first reading an ordinance to correct the city’s certified property tax rate for fiscal year 2026.
A finance presenter told the commission that the city’s earlier certified tax rate had been incorrectly recorded at $0.8968 after the 2025 reappraisal. "This error created a budget revenue shortfall in FY26 approved budget," the presenter said, and staff identified the revenue-neutral certified rate as $1.0775. To meet budget needs, the ordinance sets a general revenue tax rate of $1.1306 per $100 of assessed value.
Why it matters: the presenter said tax bills for FY2026 have already been mailed and, under the state board of equalization’s process, the city cannot collect the marginal difference on corrected taxes this year. Staff estimated the resulting budget shortfall at about $762,286 and said they will return to the commission in January with more detail on what the shortfall will mean for spending and reserves.
The presenter outlined the reappraisal context: 2025 is a reappraisal year and municipalities update fair market values every four years under state statute, a process that can change levy calculations. The presenter said earlier levy conversations that discussed a roughly $0.98 rate did not produce a tax increase because of the certified-rate error.
Quotes and process notes: "The correct revenue neutral certified tax rate was jointly determined to be 1.0775," the finance presenter said. "To meet budgetary needs, the required tax rate for FY26 is set at $1.1306..." The ordinance amends prior inconsistent ordinances and was advertised as a public hearing; the commission held the hearing and closed it with no public comments.
Next steps: The ordinance passed its first reading. Staff said they cannot retroactively recover the marginal taxes for bills already issued and will present options and implications to the commission in January.
(Reporting note: quotes and numbers are drawn from the presenter’s remarks to the Board.)
