The primary focus of the meeting was the presentation of the updated operating budget for fiscal year 2026 by Finance Director David Delina. The proposed budget maintains the town’s millage rate at 3.5875, despite a 6.7% increase in property values. Notably, this budget reflects a strategic decision to refrain from appropriating funds from reserves for upcoming fiscal year projects. Instead, the town plans to address funding once projects reach a “shovel-ready” status, which will be facilitated through future budget amendments. This approach aims to provide flexibility and transparency in the allocation of funds for significant projects, such as the marine dock facility and the old fire station, which are currently in the planning stages.

Delina elaborated on the town’s financial health, highlighting the balanced budget that does not rely on reserve withdrawals. Initial proposals had included withdrawals, but these were deferred to ensure a clearer presentation of the budget once contracts are finalized. This decision aligns with the goal of maintaining stability in the town’s operational cash flow, while also considering the potential impact of unforeseen events like hurricanes on financial conditions.

In addition to the budget presentation, the meeting addressed the anticipated 12% reduction in the fee structure, set for resolution at the upcoming meeting on September 18th. The reduction reflects the solid performance of town funds and the need to optimize capital project expenditures. The finance director outlined the projected expenditures, categorized into labor, operating costs, capital outlay, and transfers. A reported fund balance of $4.1 million underscores the town’s financial health, with a portion earmarked for reserves and capital projects. However, these capital projects did not materialize this fiscal year.

The water fund was another key topic, with discussions of a 5% rate increase and a projected 6.2% rise in revenues due to increased consumption. This shift highlights the transition to a self-sufficient model supported by user fees, eliminating the need for subsidies from the general fund. The finance director presented data on water usage trends, forecasting an 11% increase in water revenue and a 13% increase in irrigation revenue, driven by both rate adjustments and heightened usage.

Debt service was also discussed, with an acknowledgment that as debt is paid down, associated costs decrease, contributing to the fund’s financial stability. The sewer fund was similarly addressed, focusing on the sewer lining project, which necessitated drawing from reserves. A 5% rate increase was anticipated, considering both base and consumption charges, with justification provided for the cap on billing at 20,000 gallons, a standard industry practice. The sewer fund was described as “very healthy,” with capital expenditures driving increased spending.

The meeting proceeded with a public hearing phase, where Resolution Number 2025-022 was introduced to propose a final millage rate of 3.4159 mills for the town’s general operating funds for fiscal year 2025-2026. This rate is 7.12% greater than the computed rollback rate. The resolution was passed unanimously, followed by Resolution Number 2025-023, which approved the final budget for the same fiscal year. Both resolutions faced no opposition or comments from the commission or the public.

To conclude, the Town Manager provided an update on upcoming agenda items for the next commission meeting scheduled for September 18, 2025. These include the presentation of the fee schedule and a contract with the Police Benevolent Association (PBA), as well as an interlocal agreement with the Town of Manalapan for code enforcement. This agreement involves sending staff to work in Manalapan for a specified number of hours weekly, with compensation arrangements outlined.