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Red Bank council adopts ordinance to raise municipal appropriations cap to 3.5%
Summary
On final reading the council adopted Ordinance 2026-03 to exceed the 2026 municipal appropriations cap, allowing the borough to bank up to 3.5% under the cited statute; staff explained the difference between the appropriations cap and the 2% levy cap and one resident said she did not understand the measure.
The Red Bank Borough Council adopted Ordinance 2026-03 on final reading to exceed calendar-year 2026 municipal budget appropriation limits and to establish a cap bank under the statute cited in the meeting.
Staff explained that the ordinance affects the appropriations cap — a historical statute separate from the better-known 2% levy cap — and that by passing the ordinance the borough can lift the appropriations cap to 3.5 percent for budget-season flexibility and bank any unused portion for future years. The staff presentation clarified that the levy cap, which limits the amount to be raised by taxation, remains a distinct control and that the appropriations cap is a different statutory mechanism used by many municipalities.
During the public hearing, Joan Weatherell of 106 Manor Drive said she did not understand the ordinance. Staff and council members summarized prior budget discussions and the practical effect: the ordinance preserves the borough’s option to use up to 3.5 percent appropriations if needed during the 2026 budget process.
The council moved to close the public hearing and adopted Ordinance 2026-03 on final reading. A roll-call vote recorded affirmative votes from all present council members.
What this means: Adoption permits the borough to use an appropriations ceiling of up to 3.5 percent during budget preparation and, if not used, to bank the difference for later years. The ordinance does not itself change tax rates; those decisions occur during the budget process.
