Pompton Lakes council introduces 2026 municipal budget; sets May 13 hearing

Pompton Lakes officials on April 8 introduced a proposed 2026 municipal budget that would raise the borough’s municipal portion of the average property tax bill by about $283.97, officials said.

Borough Administrator Michael Ferrelli presented the budget as an educational briefing, saying the proposed total municipal appropriation is $19,613,000 with surplus anticipated at $1,900,000. Ferrelli said the borough’s proposed tax rate for the municipal portion would be about 1.083 and that the average total tax bill would be roughly $12,069, with the borough’s share near $3,033.

“The budget is an educational effort for residents,” Ferrelli said, adding that final adoption is scheduled for the May 13 council meeting when the public will be able to comment.

Why it matters: presenters said most of the town’s tax burden is outside borough control — school and county levies make up the majority of an average bill — but the borough faces its own pressures, notably sharply higher state health-benefit premiums and lower-than-expected revenues.

Officials and the auditor identified three main revenue shortfalls affecting the 2026 proposal: a delayed sale of the borough’s radio station, a drop in construction permit revenue after a high-permit year in 2024, and lower interest income. “We anticipated revenue from the radio station this year but there was a repair-related delay,” Ferrelli said. Auditor Dave Bocky told the council that health benefits are a statewide pressure hitting municipal fund balances across New Jersey.

The presentation also reviewed the borough’s debt and capital plans: debt service for the year was described at about $1,017,350 and a $4.3 million note sale is planned for June to finance several projects. The administration proposed a $1.7 million capital plan that includes a DPW garage soft-cost contribution, vehicle replacements, ADA curb-ramp upgrades, and cybersecurity and IT investments.

Council action: the council voted to introduce the municipal budget and passed the accompanying resolutions authorizing public notice and setting the public hearing for 7 p.m. on May 13, 2026. Copies of the budget were made available at the clerk’s office and will be posted to the borough finance page, officials said.

Public comment: resident Paul Volby asked where the budget documents would be posted and for an explanation of net assessed valuation; staff said the presentation and budget document would be posted to the finance department page and social media and explained that lower assessed values (from recent appeals and market trends) reduce taxable valuation.

What comes next: the council will hold a public hearing and take final action on the budget at its May 13 meeting. The administration said it will continue exploring ways to limit future tax impacts, including changes in employee health-benefit contributions and anticipated redevelopment pilot revenues.