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Borough of Hawthorne presents 2026 budget with about $539,000 levy increase, water rates to rise
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Summary
The Borough of Hawthorne administration presented a 2026 budget that the presenter said would add roughly $539,000 to the tax levy, pointing to a 40% rise in state health benefits, higher sewer charges and state-mandated PFAS water-treatment costs; the presenter asked the council to introduce the budget tonight and adopt it on May 6.
The Borough of Hawthorne administration presented its proposed 2026 budget during a public meeting, saying the plan would raise the overall tax levy by about $539,000 and include modest increases to the municipal tax rate and utility charges.
The presenter said the budget would require a tax increase of 2.9% (down from 4.5% in 2025) and also stated later in the presentation that the municipal tax rate would rise by about 2.69, equal to roughly $0.02 per $100 of assessed value. The presenter tied the levy increase primarily to a 40% increase in the state health benefits program, a 5.83% increase in Passaic Valley Sewer charges, and recurring costs tied to water-system upgrades. "The total increase to the tax levy is just under $539,000," the presenter said.
The presenter laid out household impacts, saying the average homeowner would see an increase of about $76 this year (compared with $122 in 2025), putting the municipal share of an average homeowner's tax bill at about $2,917. The presenter emphasized that the borough's municipal portion remains less than a quarter of the overall property tax bill, with schools representing the largest share and county and school shares outside the mayor and council's control.
On revenues and reserves, the presenter said 69% of the general fund is supported by property taxes, state aid is declining, and surplus (about 12% of the budget) is being used for one-time costs to avoid larger tax impacts. He also said tenant rents from the Longview Water Tower are now fully occupied and cannot be relied on for further revenue growth.
Capital spending planned for 2026, as listed by the presenter, includes road paving and curb work (about $1.8 million), sidewalk and driveway apron work ($428,000), NJDOT local aid ($852,200) and approximately $770,000 in grant funding. The presenter said the borough uses grants to limit borrowing and to support capital improvements.
The water utility budget was described as just over $7 million and self-supporting from user fees. The presenter said $500,000 of waterfront surplus will be applied to pay a portion of the construction loan for the borough’s PFAS treatment system before a permanent low-interest loan is finalized through the New Jersey Infrastructure Bank. He added that replacement of the PFAS treatment media this year will cost about $380,000, and that the water utility will increase rates by about 5% in 2026 (down from a 9% increase in 2025). The presenter also said a state-mandated program to replace galvanized water service lines with copper began in 2022 and is expected to continue through 2031; a bond ordinance to fund phases 3 and 4 was adopted this year, which the presenter said means no additional appropriations are necessary for those phases in 2026.
The presenter described Hawthorne as fiscally healthy — below its appropriations cap, with tax collections over 99% and a stable tax base (+0.04%) — and urged the council to introduce the proposed budget that night and adopt it on May 6. No formal vote or motion appears in the transcript of the presentation itself.
The presentation and the proposed budget document were posted at www.hawthornj.org, the presenter said.
Next steps: the presenter asked the council to introduce the budget at the meeting and to schedule adoption for May 6.
