Fanwood council introduces 2026 municipal budget citing rising health and insurance costs

Borough Administrator Jesse Molman and CFO Patricia Solardo presented the proposed 2026 municipal budget at the April 20 Fanwood mayor and council meeting, highlighting capital projects, revenue adjustments and major cost drivers that prompted a proposed tax impact for 2026.

Molman said budget planning began in the fall with meetings of department heads and financial advisers. He listed 2025 accomplishments paid for with a mix of grants and capital funds, including playground equipment at Forest Road Park, resurfacing at Grand Park tennis and basketball courts, public-works garage improvements and a new stage at the carriage house. Projects proposed for 2026 include restoration work at the historic train station and carriage house, tennis court resurfacing at Forest Road Park, road work on Walden Road and other local streets, bids for South Avenue improvements and continued sewer-cleaning with the sewer authority.

Solardo and Molman reviewed revenue and appropriation pressures. They said revenues grew in part because of shared-service agreements (court and tax-collection revenue), and that the borough will use $40,000 less in fund balance than in 2025. The presentation identified two major cost drivers: a roughly 20% increase in health insurance costs (citing claims experience and prescription costs) and rising Garden State Joint Insurance Fund assessments; those items together account for a significant portion of a roughly $500,000 increase in appropriations from 2025 to 2026 for the borough.

Molman presented the municipal portion of the tax rate and an example: a $0.658 municipal rate per $100 of assessed value and a stated estimated increase of $226.86 on a residential property with an assessed value of $475,000 (the borough's stated average). He said shared-service agreements with neighboring municipalities helped avoid larger increases and that the administration is pursuing further cost controls and shared services.

Council moved and seconded resolution 2026-04-101 to introduce the CY 2026 municipal budget; the motion passed on a roll-call vote with all present councilmembers voting yes. A public hearing on the budget was scheduled for May 18 at 7 p.m. and the proposed budget document will be posted on the borough website and available at Borough Hall.