4-20-2026 7:16pm

Montgomery Township Introduces 2026 Budget to The Public

Donnella Tilery Editor

MONTGOMERY, N.J. - The 2026 township budget was presented and formally introduced by Chief Financial Officer Michael Pitts at the April 16 committee meeting. The public hearing and adoption of the budget is scheduled for May 14.

The total budget for 2026 is $34,733,351, compared to $35,653,850 in 2025. The 2026 core budget (excluding grants) equates to $32,826,592 compared to $31,718,666 in 2025, resulting in a core budget increase of 3.49% ($1,107,926), which is below inflation. There were no increases in discretionary spending.

The municipal budget is 13.75% of a property owner’s tax bill. The 2026 estimated municipal tax rate is 0.501, creating an annual increase of $98.74, or a monthly increase of $8.23, for the average assessed home.

CFO Michael Pitts highlighted eight significant increases to this year’s budget: health insurance ($266,000); police salaries ($260,000); other salaries ($145,250); capital improvement ($143,000); debt expense ($100,368); utilities ($79,500); payroll taxes ($40,000); and pension contributions ($26,000).

Montgomery tax rates rank lower than most municipalities in Somerset County. The township’s general tax rate is 0.480, ranking #11 out of 21 municipalities in Somerset County. Even more impressive, our municipal share of the total property tax bill ranks third lowest county-wide.

Part of the debt expense covers funding for the extension of deed controls in response to Round 4 affordable housing obligations. In response to resident feedback, the township committee developed a plan that met the state mandate by extending the deed restrictions on existing units that were set to expire during Round 4 (2025-2035).

To reduce the burden on local taxpayers, the township continues seeking grant funding and alternative sources of revenue to lower costs. In addition to taxes, the township anticipates the following revenue for 2026: $5,100,000 in surplus; $1,903,380 in grants; $1,532,411 in state aid; $1,100,000 in interest on investments; $1,000,000 in uniform construction code; $690,000 in fees and permits; $310,000 in leases; $253,000 in shared services; $250,000 in interest on taxes; and $88,754 in court fees. The township anticipates $4,045,323,938 in total ratables in the 2026 budget.

New cell towers have also been installed and leased to generate recurring revenue that further reduces reliance on taxes. The tower at Cherry Valley generates $46,212 annually and the township owns 41% of revenue share, while the tower at the municipal center generates $41,000 with 30% of revenue share.

The sewer utility budget includes a 2% increase in the usage fee, from $15.65 to $15.96 per 1,000 gallons, with no change to the base fee, which remains at $288. Since 2016, usage fees have increased by an average of approximately 2% per year, while the base fee has increased by about 0.8% annually, both well below inflation. By owning and operating its sewer system, Montgomery maintains local control and retains user fee revenue, supporting infrastructure, reducing reliance on outside authorities, and strengthening long-term financial stability.

We encourage all residents to review the budget presentation, which is available on the township website, and attend the public hearing scheduled for May 14. Residents are welcome to email CFO Michel Pitts with any questions.