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Lacey Township committee introduces 2026 budget; health-benefit spike drives 4.3-cent local tax increase

Lacey Township Committee · April 13, 2026

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Summary

The township introduced a $47.0 million municipal budget for 2026 with a 4.3-cent local tax increase (about $129.58 annually on a $300,000 home), driven primarily by a roughly 33% rise in health-benefit costs estimated at over $2 million; the public budget hearing is set for May 14.

The Lacey Township Committee introduced its 2026 municipal budget at a public meeting, with officials saying higher health-benefit costs and routine contractual increases forced most of the rise.

"We do have an increase of 11.5 percent over last year's appropriations," said Linda Cabello, the township chief financial officer, adding that the most notable increase was for health benefits. "For us, I think it was more like 33...that equated to over $2,000,000." Cabello said the committee used more fund balance to limit the local tax impact.

Mayor Stephen Kennis and members said the committee trimmed the proposal so the municipality's share of the tax bill would rise by about 4.3 cents — about $129.58 per year (roughly $10.80 per month) on a home assessed at $300,000. "There's no reduction in services," Cabello said, noting the township intends to maintain municipal services while covering capital needs.

The budget introduction lists general appropriations and revenues; the clerk read totals for appropriations and anticipated revenues and the committee recorded votes to introduce the budget. The committee also scheduled a public budget hearing for May 14 at 6 p.m. in the courtroom so residents can comment before final adoption.

Committee members explained the context: they said roughly 20% of a homeowner's total property-tax bill is controlled by the township and that county and school levies drive the remainder. "We only control 20%...on a $300,000 house which is closest to the average assessment," Deputy Mayor Lorraine said, summarizing the committee's view on limited municipal control over overall tax burdens.

The committee paired the budget introduction with an ordinance to authorize capital projects and a separate resolution authorizing solicitation of bids tied to the capital program, which lists items including emergency services equipment, a shared pickup truck with DPW and recreation, Cranberry Hill Phase 2 engineering, Deerhead Lake dam spillway design and permitting, Gillie Park walkway lighting, and additional security cameras.

The meeting included public comment on the budget. Regina Desenza asked whether the township had coordinated with the Board of Education on school tax impacts and urged the committee to provide consolidated, clear numbers showing what homeowners will pay. Cabello and other officials said they had planned to meet with the school district but postponed a meeting due to a medical emergency and reiterated that health-benefit increases were a central driver of the local tax change.

The committee will accept public comment at the May 14 hearing before any final adoption vote.