Borough Council discusses proposed 2023 budget

Sussex Borough’s preliminary 2023 budget is about $20,000 below the state’s tax-levy cap, chief financial officer Michel Marceau told the Borough Council at a special budget workshop Feb. 28, even though the borough is facing rising health-care costs.

The preliminary budget is $1.102 million for 2023, but it could rise to $1.128 million, which would be a 4.96 percent increase in the tax levy from 2022, he said.

“We all know that inflation is running higher than that,” Mayor Edward Meyer said. “That’s not too bad, overall, when you look at the cost of the (health) insurance and everything else that we’re having to put into this budget and still try to provide the services at the best levels we can for the community.”

New Jersey municipalities are limited to a 2.5 percent increase in appropriations and a 2 percent cap on a rise in the tax levy, the amount raised by property taxes.

Most municipalities approve an annual ordinance to increase the appropriations cap to 3.5 percent if needed.

“We do that every year,” Marceau said. “We don’t actually use the money. It’s just basically paperwork. It allows us to set up what they call a cap bank in case we need to increase appropriations in the future.”

This year is different because the borough is facing an enormous increase in health-care costs, he said, so the state is giving municipalities an exception to the appropriations cap up to 17.6 percent and an exception to the levy cap of up to 19.6 percent.

The budget is expected to be introduced by March 31 or the first meeting in April. Adoption is required by April 28 or the first meeting in May.

Marceau said he is waiting for information on whether the borough must purchase a new fire engine.

A new truck for the Department of Public Works also is needed, officials said.

Depending on the cost, such equipment is considered a capital purchase, which may be funded with a bond ordinance, not in the municipal budget.

A $215,000 grant could be used to pave the borough parking lot or the Mill Street lot.

The borough also has half of the federal funds provided by the American Rescue Plan Act of 2021 that have not been allocated.