Homeell committee adopts $33.6 million municipal budget; cap-bank ordinance approved

The Homeell Township Committee adopted the 2026 municipal budget and approved an ordinance allowing the township to establish an appropriation "cap bank," actions the governing body said are intended to preserve fiscal flexibility amid rising health and pension costs.

Eric Silvergold, chair of the Finance Advisory Committee, told the committee the township's financial position remains strong, with a surplus of $9.2 million and a $33.6 million municipal budget this year. "Our surplus stands at $9.2 million," Silvergold said during his presentation, and he stressed that surplus-to-revenue ratios figure heavily in rating agency assessments.

The committee voted 3'2 to adopt ordinance 2026-14, which makes use of NJ statutory allowance to hold a limited appropriation "bank" for future years. The ordinance passed after residents asked for specificity about intended uses; officials responded that the mechanism is intended to manage unpredictable swings in pension and health insurance costs. Mayor Prevadutoo and Committeemen Vanderham and Foster voted yes; Committeemen Bontempo and Romano voted no.

Why it matters: Homeell officials said pilot revenue and a high fund balance have kept municipal taxes relatively restrained, but the committee and finance advisers warned that pilot revenues are becoming more variable and will flip to standard property tax treatment in roughly two decades. Officials framed the cap bank as a precautionary tool to avoid emergency budget measures or repeated referenda if costs spike.

Key facts and figures: Silvergold highlighted a $9.2 million surplus and noted pilot receipts around $7 million (down about 8% year over year). Bill, the township chief financial officer, said the budget uses roughly $7.585 million of fund balance in the 2026 plan; operating spending rose about 1.8% while total appropriations rose 3.7%.

Public hearing and community concerns: The public hearing on both the budget and the cap-bank ordinance drew extended comment. Residents pressed officials on the distribution of pilot funds, the township's reserve level, and whether surplus should be used to preserve services such as courtesy busing. "If we don't have the bank and we're stuck under that 2% cap and we don't do this bank, then we're stuck," the CFO said, explaining the tradeoffs between holding reserves, using the cap bank and seeking voter approval in a referendum.

Votes at a glance: minutes approval (March 24, April 14, April 28, 2026) ' approved (unanimous roll call); Ordinance 2026-14 (cap bank) ' adopted 3' (Mayor Prevadutoo, Vanderham, Foster) to 2' (Bontempo, Romano); 2026 municipal budget ' adopted 3' to 2' (same split).

What happens next: With state review completed, the adopted municipal budget takes effect for the township's fiscal year. Officials said they will continue to brief residents on pilot revenue trends and encouraged continued public engagement as capital and long-term obligations are monitored.

All quotes are from the public meeting transcript and attributed to the speaker who made them at the hearing.