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Fanwood delays 2026 budget adoption after state questions; council outlines drivers and savings
Summary
At a May 18 public hearing, Fanwood officials presented the 2026 municipal budget ($13.32 million) and deferred adoption after the state issued follow-up questions; officials cited health-insurance and debt-service cost pressures and said grants and shared services partially offset increases.
Fanwood Borough's mayor and council held a public hearing on the 2026 municipal budget on May 18 but did not adopt the budget after state review produced follow-up questions that staff have not yet answered.
Council member Jesse Banks outlined key figures and drivers: the municipal budget totals $13,319,003.47, the municipal tax levy is $8,400,539, and the average Fanwood municipal portion of property tax for a house assessed at about $475,000 translates to $3,001.28 this year — an increase of $226.86 over last year (about $18.91 per month). Banks said nearly 76% of appropriations are fixed (salaries, benefits, debt service, pensions, library and insurance), limiting options to reduce spending without cutting services or staff.
"The biggest challenge in building this budget is that nearly 76% of our appropriations are essentially fixed," Banks said, noting a 26% increase in health insurance (about $365,000) and other drivers including a roughly 9.5% rise in general liability premiums and higher debt-service costs. He said the borough secured around $515,000 in grant funding and added shared-service arrangements (a shared court with Garwood and tax collection with Scotch Plains) expected to yield savings.
The mayor explained that the borough will not vote on the budget that night because the state sent a list of questions after reviewing the filing; the borough must respond before adoption. CFO Trish Salardo and council members said they will return with answers and a final adoption vote when the state clearance is complete.
During the hearing residents asked questions about tax abatements and revenue opportunities; one resident requested additional information on a proposed 40 South abatement and whether agreements complied with timing requirements. Officials said attorneys are reviewing those specific requests and staff will respond when review is complete.
Next procedural step: staff will respond to the state's questions and return to the council with the recommended adoption once the responses are complete and the state has cleared the budget for adoption.
