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Allendale CFO says 2026 budget keeps average tax hit to 0.9%; council readies cap-bank vote and BPU outreach over Veolia rate case
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Summary
Allendale officials told the council that the 2026 municipal budget will translate to a 0.9% average tax impact; the council introduced a cap-bank ordinance and discussed pressing the Board of Public Utilities on a Veolia rate case tied to the borough’s 2021 water-sale agreement.
Allendale’s administrator and CFO told the mayor and council on March 26 that the borough’s 2026 municipal budget will result in an average 0.9% tax impact for homeowners and that staff worked to mitigate rising health-benefit costs.
Allison Montana said health insurance premiums increased roughly 35%–50% this cycle, a major pressure on municipal finances, but said advance planning, use of reserves and a new community finance engagement committee helped keep Allendale’s impact far below some nearby municipalities reporting double-digit increases. Montana said the borough prepared a more detailed budget newsletter for distribution within weeks to explain the line-item effects on residents’ tax bills.
The council introduced Ordinance 26-11, a routine cap-bank ordinance under NJSA 40A:4-45.14 that, as presented, would allow the borough to increase appropriations up to 3.5% (an additional 1% above the typical 2.5% cap). The ordinance was scheduled to be posted March 27 and will return for final passage at the April 23 meeting.
Separately, council members discussed the borough’s 2021 sale of its water system to Veolia and an upcoming Board of Public Utilities (BPU) rate case with a potential July 2026 effective date. Officials said the sale included a rate-stabilization provision the borough expects to hold Veolia to a 5% limit for Allendale in 2026; council sought to enlist ratepayer advocates and higher-level elected officials for a public BPU meeting to press that position.
Mayor Amy Wilsinski framed the outreach as a matter of fairness to Allendale ratepayers: she said the borough wants BPU staff and commissioners to recognize the contract terms agreed during the sale and to avoid shifting costs onto other ratepayers. No regulatory outcome was reached at the meeting; the council said it will attend the public BPU proceeding and continue advocacy.
Next steps: Ordinance 26-11 will return for final passage April 23; the borough will participate in the BPU public meeting regarding Veolia’s rate filing.
