3.44% Tax Increase Proposed In Bernards Township 2026 Budget

BASKING RIDGE, NJ — Bernards Township introduced a proposed 2026 municipal budget of just under $50 million with a 3.44 percent tax increase over 2025.

Chief Financial Officer Sean McCarthy said at the Tuesday Township Committee meeting that the increase matches last year’s percentage change and reflects what the township committee describes as a push for tax stability while maintaining services.

"The budget reflects a continued commitment by the governing body to maintain high service levels while managing some pretty significant external cost pressures," McCarthy said.

He also said, "What this represents for homeowners is the township committee’s commitment to continued tax stability."

An average assessed home value in 2026 is $931,637.26, up from $871,769.11 in 2025. This means the average assessed home will pay $2,601.09 in total municipal taxes for 2026, compared with $2,484.54 in 2025 - this is an increase of $116.55.

McCarthy identified employee health benefits and the library tax levy as major drivers in the spending plan. According to the budget presentation, employee health benefit costs are increasing by 22 percent, while the library tax levy is rising by 8.77 percent.

"Without question, the single biggest cost driver this year is health care. So we are looking at this year as a one-year increase of nearly $550,000, up 22 percent over 2025. This has unfortunately been a point of pretty significant budget pain for us over the last few years. It does appear to be getting worse at this point, and really no indication of any relief coming from the state program, unfortunately," McCarthy said.

"We are still seeing what is beginning to be almost unmanageable increases on our healthcare costs… We are starting to run out of tools in our toolbox to address that," said McCarthy. "Unless we see some willingness from the state to make some significant plan design changes, we will have some pretty limited options to control the benefit costs from our end."

From the appropriation side, public safety makes up the largest chunk at 14.18 percent, followed by capital improvements at 13.96 percent, reserve for uncollected taxes at 9.62 percent, and public works at 9.22 percent.

The township’s tax base also continued to grow. The total assessed value of homes in Bernards Township is nearing $10 billion, an increase of 6.12 percent over 2025.

McCarthy said this is the fifth straight year of assessed value increases, with the trend starting in 2022.

McCarthy also introduced the township’s golf utility budget, which is proposed at $642,234.88, up from $569,312.69 in 2025.

The golf course is operated as a self-liquidating utility, meaning its operating costs are covered by user revenue rather than taxation.

A public hearing and adoption of the budget are scheduled for Tuesday, April 28.

See below or click here to watch the full budget presentation(beginning at 41:00):

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