Gloucester Township Council Approves Annual Budget Cap Proposal

GLOUCESTER TOWNSHIP, NJ — Gloucester Township Council gave final approval to a proposed ordinance to exceed the municipal budget appropriation limits and establish a cap bank Monday night.

Council approved the annual measure by a 5-0 vote during its meeting at the municipal building.

The proposal is the first step in the annual budget process. A proposed budget for the upcoming year has not yet been introduced.

By approving the proposal, council is allowing the township to increase its budget by 3.5 percent over last year's final appropriations and bank the excess as an appropriation.

The additional proposed increase amounts to $1,416,664.65, according to a copy of the proposal posted on the township's website. In all, the 3.5 percent increase amounts to $1,983,330.51.

It is not a tax increase, and Gloucester Township Business Administrator Tom Cardis said the excess money can be used in case of unforeseen emergencies.

“The storm on the first and second of February, we had to bring in outside contractors, and that was very expensive,” Cardis said.

If the money is not used, it can be transferred to other line items in the budget, Cardis said. It would then go into reserves, where it remain for a full year. It could be canceled, but they don’t typically do that, Cardis said.

“The reason it stays in there for an additional year is for the bills that come in, let’s say from 2020 that you’re paying in 2021,” Cardis said. “Most of those expenses will be completed by March. It’s mainly for utility bills and things like that that come in later.”

During the public hearing, resident Ray Polidoro argued that the money stays in the budget, and that it should be used for the following year if there is an emergency such as a snowstorm, but Cardis said that townships are statutorily not permitted to do that.