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Highlands council adopts ordinance to establish a cap bank for emergency spending
Summary
On May 6, 2026, Highlands Borough Council adopted Ordinance O2609, allowing the borough to exceed the municipal budget appropriations limit to establish a cap bank for future emergency use. No public spoke at the hearing; officials clarified the cap bank is distinct from the property tax rate.
Highlands Borough Council voted on May 6 to adopt Ordinance O2609, permitting the borough to exceed the municipal budget appropriations limit to create a cap bank for use in future emergencies.
The council opened a public hearing on O2609 but recorded no members of the public who wished to comment. The mayor offered the ordinance and it was seconded; roll-call responses were affirmative and the measure passed on second and final reading.
The measure authorizes the borough to bank additional levy capacity that could be used if a future catastrophe or emergency requires larger-than-normal appropriations. During the public comment period a resident asked whether a resident vote is required to allow the borough to move from a typical 2% cap to 3.5%; council members and the mayor clarified the cap bank governs allowable municipal spending increases in extraordinary circumstances and is not the same as the regular property tax rate.
Mayor Boulan explained the concept in everyday terms: "This is where the CFO used to call it the credit card in the drawer," saying the banked capacity would remain unused unless a catastrophe required it.
The ordinance passed on second and final reading. Council also approved a related request to create or retain a cap bank to provide flexibility for unforeseen future costs, including potential spikes in employee health benefits and other emergency expenditures.
