Morristown mayor unveils $52.8 million 2026 budget, cites tax base pressures and public-safety cost increases

Mayor Timothy P. Dy presented the town's proposed 2026 operating budget of $52.8 million, describing it as "more than just a series of numbers on a page" and framing the plan as a response to rising costs and a shrinking tax base.

Jillian Bareric, the town's business administrator, said Marorstown's net assessed valuation is about $4.68 billion and that "one penny on the tax rate generates about $468,000." She said the proposed municipal tax-rate increase is roughly 3.25 pennies and the municipal portion of the average homeowner's tax bill rises by about $27 a year. When combined with county, school and library levies, the administration estimated an approximate 5.5% increase in the total tax bill for an average property owner.

Administration officials told the council that a $73 million decline in taxable commercial value from post-revaluation appeals has reduced the town's tax base and translated into roughly $9 million in foregone revenue. The mayor and business administrator said those structural pressures, combined with higher utility and technology costs and rising public-safety salaries and pension obligations, drove most of the year-over-year increase.

Bareric detailed the budget's key drivers: municipal operating appropriations of about $52.8 million; a sewer utility budget increase largely tied to capital needs; and $3.6 million in capital projects, much of it for roads, parks and equipment. She said the town is using a mix of one-time revenue and careful surplus management to limit the levy impact.

The presentation identified specific cost increases in public safety: police salaries and other expenses (noting a rise in the Axon contract for body-worn cameras) and fire-department maintenance costs. The administration said police and fire salary and pension increases account for nearly all of the operating increase and that other departments relied on attrition and tight controls to limit growth.

Council members praised the administration's work to hold the town under statutory levy caps while noting broader statewide fiscal pressures. The mayor emphasized redevelopment revenue and pilot agreements as an offsetting source, saying pilot revenue provides $3.8 million annually and that redevelopment has "saved" local homeowners money compared with an alternative where projects were not built.

The town plans follow-up budget hearings and detailed one-on-one briefings with council members before final adoption. The administration said it will continue monitoring volatile utility and fuel markets and work with state and regional partners on longer-term fiscal strategies.

What's next: the council will review the detailed line items in upcoming budget hearings and return for additional votes required for adoption and any related ordinance changes.