Merchantville council adopts ordinance to exceed 2026 budget caps, establish CAP bank

Merchantville — The Borough Council on March 23 adopted Ordinance 26-01, authorizing the borough to exceed standard municipal budget appropriation limits for calendar year 2026 and to establish a CAP bank for unused margin. The motion to adopt was made by Council member Ray Woods and seconded by Council member Sean Fitzgerald; the transcript records the adoption but does not include a roll-call tally.

The ordinance cites the Local Government Cap Law (N.J.S.A. 40A:4-45.1 et seq.) and states the council finds it necessary to increase the CY2026 budget by up to 3.5% over the previous year’s final appropriations in the interest of promoting the health, safety and welfare of residents. It specifies a 1.5% increase amounting to $75,656.37 as an exception for the year and authorizes an overall 3.5% increase equal to $176,531.53. Any amount authorized but not appropriated in the final budget is to be retained as an exception to final appropriation and may be banked for use in either of the next two succeeding years.

The ordinance requires that a certified copy of the ordinance, with the recorded vote, be filed with the Director of the Division of Local Government Services within five days of adoption. The transcript does not include the numerical vote tally or indicate any amendments proposed on the floor. No public comments on the ordinance were recorded.

The ordinance provides the borough procedural authority to use the CAP bank mechanism permitted by state statute; next steps are for the borough to reflect any appropriations in the final CY2026 municipal budget and to file required certifications with the Division of Local Government Services.