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Council adopts ordinance to exceed municipal budget caps, establishes cap bank
Summary
The Borough of Clayton Council unanimously adopted Ordinance 1-2026 to exceed municipal budget appropriation limits and create a cap bank under N.J.S.A. 40A:4-45.14; the CFO said the measure provides flexibility in budgeting and does not itself raise taxes.
The Borough of Clayton Council on Feb. 12 unanimously adopted Ordinance 1-2026, which allows the borough to exceed municipal budget appropriation limits and to establish a cap bank under state law.
CFO Mary Lavelle explained the ordinance's purpose during the public hearing, saying it "allows for flexibility in expenses with the caps." Dr. Zorzi asked whether the ordinance meant taxes would increase by 2%; Lavelle responded that the ordinance provides fiscal flexibility rather than automatically increasing the tax rate.
Councilmember Vondran moved to adopt the ordinance and Councilmember Rollo seconded; the measure passed on a roll-call vote with all members voting yes. The ordinance cites N.J.S.A. 40A:4-45.14 as the statutory authority for establishing a cap bank.
The council did not adopt any tax-rate change as part of the ordinance; any future budget decisions that affect property taxes would require separate action during the municipal budget process.
