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North Caldwell budget review flags water-utility deficit that could drive a 3-point tax increase
Summary
Council reviewed the borough's preliminary 2026 budget; the CFO warned that record water-main breaks and lost water created a Water Utility deficit and that current requests would push the Operating Budget toward a three-tax-point increase.
The Borough of North Caldwell's mayor and council reviewed a preliminary 2026 budget on Feb. 26, where officials flagged a deficit in the Water Utility that could force higher property taxes.
"A record-setting number of water main breaks and 'lost' water in the system resulted in a deficit in the Water Utility budget," Rich Mondelli, chief financial officer, said during the meeting. Mondelli also reviewed the Pool Utility and Operating budgets and said additional pool revenue and savings in pool appropriations could be reinvested into the pool utility.
Councilman Arthur Rees said the Finance Committee's objective is to limit any tax increase "to no more than the prior year," but Mondelli warned that, as presented, the operating requests and the gap in the water utility would produce a three-tax-point increase. The council also heard that the West Essex Board of Education plans to propose a referendum later in the year, which could affect the borough's fiscal planning for 2027.
The council scheduled a follow-up budget discussion for March 10, 2026, at 5:30 p.m. before considering additional department requests and any formal actions on appropriations.
