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Administrator previews Rutherford’s 2026 municipal budget and capital plan; tax rate edged up
Summary
Borough administrator Bob presented the 2026 proposed municipal budget April 13, citing a modest ratable decline, higher health insurance costs and a municipal tax rate rise to $1.016 per $100 of assessed value; several capital ordinances were introduced on first reading.
The borough administrator gave a public overview of the proposed 2026 municipal budget at the Rutherford Borough Council meeting on April 13, outlining revenue changes, expense drivers and capital projects that will be subject to a public hearing on April 27.
The administrator said total ratables for the borough are approximately $2,739,503,864 and noted a decline of roughly $9.6 million from the prior year, driven in part by changes in cable/franchise fee treatment. He said the proposed municipal tax rate is $1.016, an increase of 2.95% from the prior year. Using the borough’s example assessment of $440,500, the administrator calculated $4,477.56 in municipal taxes (about $128.20 more than the prior year).
Key revenue and expense points included no increase in state aid, continuing declines in cable franchise fees linked to reduced landline service, and an anticipated small increase in local revenues (about $117,000). The administration plans to rely on a larger surplus in 2026 (approximately 9% of the budget) to offset some lost revenue, including a rescinded liquor-license sale that had been expected in the prior budget.
On the expense side, the administrator identified health-insurance premium increases (about 25% this year) and higher property/casualty and workers’ compensation costs as major drivers of the budget pressure, noting roughly a $900,000 increase in those lines. He said debt service is being managed and that pension costs were slightly lower than expected.
The meeting also introduced three capital ordinances for first reading: (1) an ordinance providing $690,000 for various capital purposes; (2) a bond ordinance appropriating $1,800,000 (with $1,710,000 bonds authorized) for capital improvements; and (3) a bond reappropriation ordinance for $360,000 of previously issued proceeds to be used on other borough improvements. The administrator said road repairs are a major component of the capital plan with approximately $1.4 million targeted for specified streets and $895,000 allocated to finish improvements at Memorial Field and a new accessible playground (funded in part by a Jake’s Law grant).
Council members thanked the administrator and CFO for preparing the budget and scheduled a public hearing on April 27 for formal adoption and capital-ordinance hearings. The council approved the first readings and moved the public hearing date for final consideration.
