Allendale Introduces Budget With Little Tax Impact
ALLENDALE — On March 26, the Borough Council introduced its 2026 municipal budget with a nearly identical property tax levy.
Some $11.10 million in municipal property taxes are projected to be raised to help balance the introduced $18.54 million budget. Last year, the tax levy sat at $11.11 million for a $17.46 million budget.
Meanwhile, the municipal tax rate – what does not include the schools or county – is slated to decrease from an actual rate of $.478 per $100 of property value in 2025 to an estimated $.430 in 2026.
The assessed value of the average home is expected to increase from $882,362 to $991,079.
According to Borough Administrator Alison Altano, the impact equates to a 0.9% tax increase on the average home for the municipal portion of the property tax bill.
“We’re in a very strong financial position and had very, very minimal obstacles while preparing this year’s budget,” Altano said. “Many towns across New Jersey are dealing with the rising health benefit costs. That was probably the only hurdle that we had.”
If ultimately adopted, the borough would rely on more surplus, $2.2 million in 2026, versus $1.3 million in 2025. As a result, the rainy day fund would drop from $5.05 million down to $2.85 million.
“The healthcare has actually been a problem for the last couple of years and we prepared for it,” added Mayor Amy Wilczyński.
“So, we knew that and so last year we put money aside for that, so we wouldn’t have a big hit this year. A lot of other municipalities, with their big budget holes, they’re blaming it all on the healthcare. Everybody knew this healthcare was going to be a nightmare and nobody really prepared for it, but we did.”
Altano said bonds were issued for some larger capital projects in past years, but that 2026 would be the “first year” when all those one-time undertakings would be afforded with cash on hand, not new debt, because of funds set aside.
Years ago, the sale of the water utility helped greatly in terms of “expense avoidance,” said Attorney Ray Wiss. He explained how water main issues and the PFAS mandates were examples of expenses costing other municipalities millions of dollars.
“That takes foresight. That takes planning,” he said.
The attorney also noted how its neighboring town, Saddle River, doesn’t have sewer infrastructure and is “knocking at our door” to connect to its system, resulting in additional revenue payments.
Cell tower lease revenues also increased from $385,000 to $463,157 after Allendale previously took back ownership of that tower. The municipality also maintained $1.08 million in state aid.
Municipal debt landed at $200,971 from interest on previously issued notes, up from $184,008 a year ago. The municipality also deferred $164,966 in charges.
Overall, the town “cut back on every single thing” in its effort to be “fiscally conservative,” said Wilczyński, adding that Allendale found a way to maintain its infrastructure and also “improve the town” in areas like parks and downtown.
The mayor also noted that the municipality “revamped” the former financial advisory committee – with all “the financial minds of the town” – into what she called the “community finance engagement committee.”
That gave residents a chance to discuss ideas and ultimately succeed in making some “tweaks” to the budget before it came before the council.
A budget hearing is scheduled for 7 p.m. April 23 at the Municipal Building, 500 W. Crescent Ave.