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Medford Lakes approves 2026 budget, adopts 3.5% cap bank ordinance
Summary
The Borough Council on June 24 adopted the 2026 municipal budget and passed an ordinance establishing a 3.5% cap bank to allow limited future exceedances; council defended salary increases and shared-services savings amid public questions over surplus use.
The Borough Council of Medford Lakes on June 24 approved the borough’s 2026 municipal budget and adopted Ordinance 730 authorizing a 3.5% “cap bank,” which auditors commonly recommend to provide flexibility for emergency appropriations.
Manager Dr. Robert J. Burton told residents the budget equates to a three-and-a-half-cent increase in the municipal tax rate — which he said amounts to just under $9.00 per month for the average assessed home — and that the final budget reflects a 2.3% increase, reduced from an initial 3.67% figure by shared services agreements. Burton cited rising insurance and necessary salary increases as the primary cost pressures.
Resident Joe Aromando used the public hearing to criticize repeated use of the cap bank and the borough’s reliance on surplus funds. “One day the piggy bank is going to break,” Aromando said, and later asserted that “over $400,000 from surplus was taken this year to keep the rate down.” Manager Burton and Council members pushed back, saying surplus balances are managed and that some increases — notably to retain staff and limit turnover — were necessary. Councilman Thomas J. Cranston commended staff and the manager for fiscal management and for keeping the borough’s budget disciplined.
Solicitor Douglas Heinold clarified the function of the cap bank during debate, saying it is a reserve mechanism (an exception to appropriation limits under N.J.S.A. 40A:4-45.14) rather than an automatic spending authority and is recommended by auditors to provide emergency flexibility.
The council recorded roll-call votes to adopt the ordinance and to approve the budget; the four members present voted in favor and one member was absent. The minutes show the borough will file certified copies of the ordinance and the adopted budget with the Division of Local Government Services as required.
Council also adopted Resolution 58-26 certifying that Medford Lakes met criteria to conduct a self-review of the CY26 budget under N.J.A.C. 5:30-7. The council’s action completes local approvals; the borough indicated it will follow the statutory filing and certification steps.
