Bernards Township introduces 2026 budget; officials flag rising health-benefit costs

Bernards Township Committee introduced its 2026 municipal budget and related resolutions at a regular meeting, with a public hearing set for April 28, 2026.

Sean McCarthy, the township chief financial officer, said the total 2026 budget is "just under $50,000,000," with the amount to be raised by taxation set at $24,315,594 — a 3.44% increase from 2025. He said the municipal services tax rate is projected at $0.246 per $100 of assessed value, down from last year’s $0.253, a change McCarthy attributed to increased ratables and assessment growth.

McCarthy told the committee the capital program for 2026 totals about $7.7 million and the golf utility budget is $642,235. He highlighted assessed-value growth that nearly approaches $10 billion for the township and said average home assessed value rose to about $931,000, which results in an estimated municipal-services tax bill of roughly $2,002.93 for that average assessment.

The largest immediate budget pressure, McCarthy said, is employee health-benefit costs: a roughly $550,000 increase (about 20% year over year) that makes up more than half of the total operating increase. "We are starting to run out of tools in the toolbox to address that," he said, noting the township’s limited options as a participant in the State Health Benefits Plan and the town’s steps over recent years to mitigate premium growth.

Committee members pressed for potential solutions. Deputy Mayor Tompkins asked whether pooling with other towns or joining a joint insurance fund was possible; McCarthy said joint funds and other alternatives are being explored but that market conditions have made alternatives difficult to secure. Pat (staff), speaking about insurance shopping, said the township will continue to pursue options and gather claims experience data.

Mayor Mary Duarte McCarthy praised staff and department heads for building a bottom-up budget and noted the township’s strong fund balance. The committee moved and approved the budget-introduction resolution to schedule the April 28 public hearing; several other short-term appropriations and the golf-utility introduction were approved as part of the same meeting.

Public comment touched on the budget’s pressure points. A resident (Firestein of Riverside Drive) urged the committee to send a formal letter or resolution to state leaders about escalating insurance costs and asked to see such action before the April 28 hearing.

Next steps: the township will hold the advertised public hearing and take adoption votes at the April 28 meeting; meanwhile, staff will continue to explore alternatives to manage health-benefit cost growth.