Committee adopts ordinance to exceed municipal budget cap after resident warns of surplus dependence

Egg Harbor Township on Feb. 4 advanced a package of fiscal and administrative measures after a public hearing that included detailed public concern about how the township uses surplus and cap bank authority to balance budgets.

Ordinance No. 1, read into the record by township staff, would allow the municipality to exceed the municipal budget appropriation limit and to establish a cap bank percentage under the cited New Jersey statute read at the meeting. During public comment, Forrest Dilly of Egg Harbor Township urged caution about repeated use of the cap bank and surplus to balance the budget, arguing the pattern risks future tax increases and depleted reserves. Dilly cited what he said were recent uses of surplus to balance budgets: "In 2020, $1,450,000 was used to balance the budget. In 2021 and 2022, $1,750,000 was used. In 2023, $2,900,000 was used. In 2024, $3,400,000 was used. In the adopted 2025 budget, $5,000,000 was used to balance the budget." He called that trend "an unhealthy financial pattern" and urged leaders to pursue sustainable revenue strategies and control recurring operating costs.

Committee discussion acknowledged Dilly's concerns but several members said they would vote for the ordinance to preserve flexibility in the event of unforeseen expenses. One member said the continued use of surplus "really signals ... a structural deficit" and recommended pursuing long-term fixes such as managing residential growth and increasing commercial ratables.

The committee then adopted Ordinance No. 1 (final vote recorded by roll call in the meeting minutes). The meeting record also shows the committee introduced and adopted Ordinance No. 2, setting 2026 salaries for employees covered by the Policeman's Benevolent Association, and Ordinance No. 3, fixing other 2026 salaries. Ordinance No. 4, accepting the deed of a stormwater basin at Block 5203, Lot 1.12 from Touch of Modern Incorporated, was introduced and scheduled for public hearing on Wednesday, Feb. 18, 2026, at 5 p.m.

Other business included approval of resolutions on the consent calendar (Nos. 88'0 to 96), an add-on (Resolution 99) authorizing an amendment to a lease agreement with Cygnus, approval to pay bills under Resolution 97, and approval of the January payroll in the amount of $2,049,864.33. The committee concluded public business and voted to enter a brief closed executive session to discuss personnel, labor negotiations, a potential shared-service agreement with Pleasantville, and a lease update for 2594 Tilton Road.

The meeting record shows no formal challenges to the ordinances' adoption in public session; member comments focused on balancing flexibility with fiscal sustainability and next steps on drafting a local ordinance on flavored-vape sales.

The committee's next scheduled public hearing on Ordinance No. 4 is Feb. 18, 2026, at 5 p.m.