At the March 9 public budget meeting, Pennington Borough Administrator GP Caminiti introduced the proposed 2026 municipal budget, which totals $4,964,293.86.
The municipal tax rate would increase from 0.575 to 0.5975, a rise of 2.25 cents per $100 of assessed home value. The library tax would increase slightly from 0.046 to 0.0475. Based on the Borough’s average assessed home value of $490,618, the estimated annual impact on the average homeowner is approximately $110.39 for the municipal tax. With the combined municipal and library taxes, the estimated annual impact is about $117.75.
The total property tax bill reflects several categories of taxation, including school, county, open space and library. Using a 2025 bill as a reference, Caminiti said the municipal portion represented 17.3% of the total. “So in other words,” he said, “the total tax bill that’s being paid by any resident or property owner in town does not go to the Borough of Pennington for the Borough to use.”
Caminiti said the 2026 budget planning process began about two months ago through a combined effort of the finance committee, the chief financial officer and Borough staff. The first draft came in at about 60 cents per $100 of assessed value, prompting officials to go “back to the drawing board,” he said. After “a lot of scrubbing,” the rate was reduced through cuts in administration, public works, police and construction offices.
He noted several factors that helped the budget this year. With no major legal issues anticipated, the Borough expects lower legal fees than in 2025, and officials also anticipate increased revenue from the excise tax on cannabis sales. The Borough expects to receive about $90,000 — roughly $50,000 more than was budgeted last year. “We now have a budget that is in compliance with state regulations,” Caminiti said.
“There are lots of rules governing what we can spend and what we can raise in terms of taxes,” Caminiti said. Referring to state-imposed caps, he noted the Borough faces a 3.5% appropriations cap limiting new spending and a 2% tax levy cap that places a ceiling on tax increases.
“We also have some sound practices that we need to adhere to in terms of maintaining a budget surplus or reserves,” he said. The purpose of this buffer is to provide funds for unexpected expenses and to help support future budgets. By state law, the municipality must maintain a $200,000 reserve balance. Pennington meets this requirement with a fund balance of about $195,000, supplemented by transfers from operating surpluses in water and sewer revenues.
Addressing rising costs, Caminiti said energy expenses have increased by more than 20% this year. Additional increases are projected for road repairs and maintenance, garbage disposal tipping fees, recycling costs and shared services with neighboring communities and the county, including emergency medical services and 911 dispatch.
Group health insurance for active and retired employees is another significant cost driver. However, the Borough was able to mitigate increases by enrolling with a new provider and exiting the State Health Benefits Program. “Had we remained in that program, we would have seen a shocking 37% increase to our healthcare premiums for all full-time active employees and retired employees. So we dodged the bullet on that one,” Caminiti said.
Non-discretionary spending includes healthcare insurance, liability coverage, Social Security, pension obligations and water and sewer utility costs. The budget overview shows a modest increase in water and sewer utility spending and includes $307,000 in capital funds dedicated to infrastructure improvements and maintenance across the Borough’s water system.
The Borough is also researching options to meet state regulations requiring lead service line replacements and remediation of PFAS — often referred to as “forever chemicals” — in the water supply.
“State regulations are getting tighter as opposed to loosening, and the compliance requirements are becoming more and more onerous in terms of time and effort required,” Caminiti said. “The total budget has increased slightly from 2025, but that’s because operating expenses have gone up as well. We have increased costs, which reflect more responsibilities.”
Despite the financial pressures, Caminiti noted that no cuts were made to municipal services or staffing levels. “Everyone is very committed to maintaining the high standard of services and professionalism that we enjoy in Pennington,” he said.
