Frenchtown’s 2026 Municipal Budget Approved—and Explained

Borough Council approved the municipal budget for 2026 on May 6. In New Jersey, municipal budgets are typically adopted later in the spring because municipalities must wait for finalized figures related to state aid, county taxes and other funding obligations before accurately completing the budget process.

The borough’s 2026 budget totals $2,886,272.08; Mayor Brad Myhre says that the budget reflects a continued effort to maintain essential services while remaining mindful of the affordability challenges facing residents. The most significant driver of increased spending this year was the sharp rise in employee health care costs. Local government employers participating in the New Jersey State Health Benefits Program (NJSHBP) are facing a substantial 36.2% premium increase for Plan Year 2026, creating added financial pressure for municipalities across the state. Brad notes that, despite these rising costs, the borough’s 2026 budget maintains staffing levels and includes only modest adjustments in other spending areas.

A municipal budget in New Jersey is a mandatory, legally binding annual plan that outlines how a town will raise and spend money. It sets spending limits, determines the municipal property tax levy, and allocates money for services like police, public works, parks and the library.

In New Jersey, municipal budgets are capped so that property taxes cannot be increased by more than 2% over the previous year, but there are some exceptions. Additionally, New Jersey municipalities may not increase spending by more than 3.5% over the previous year, with some exceptions.

The municipal budget is a financial blueprint divided into three primary sections. The Operating Budget covers the day-to-day “costs of doing business,” such as salaries for police and public works, trash collection, etc. Long-term investments for the borough’s infrastructure, like road paving and equipment upgrades, are managed through the Capital Budget, while the Debt Service portion is dedicated to paying the principal and interest on the funds borrowed to complete major projects. By balancing these three areas, the borough strives to ensure that current service needs are met while responsibly planning for the community’s future stability.

Understanding a municipal budget can be a challenging and complex endeavor; a few important pieces of background can help:

• Sources of revenue: Local property taxes are the largest source of revenue contributing to the municipal budget. However, other revenue may include state aid; state and county grants for one-time costs such as transportation and parks projects; payments in lieu of taxes; fees, including sewer fees paid by borough property owners, other fees and permits such as building permits, marriage licenses, liquor licenses, and zoning fees; revenue generated from traffic violations and local ordinance infractions; and surplus funds from the previous year. Local property taxes fund 57.65% of this year’s budget, with 42.35% coming from those other sources. The borough’s chief financial officer indicates that the 2025 tax collection rate improved from 2024 and that the rate for 2026 is still inconclusive.
• Municipal tax levy: It is important for readers to understand that the property tax rate is the total rate applied to a home’s assessed value, covering local, school, and county expenses, while the municipal tax rate is only the portion of that total rate specifically dedicated to fund the borough’s government services (such as police, public works, etc.).
  • In 2025, Frenchtown’s property tax rate was $2.731 per $100 of assessed value, which is generally in line with the Hunterdon County average of 2.72%. The tax rate for the 2026 budget cannot yet be determined while necessary information from schools and the county is still outstanding. About 24% of each resident’s total property tax bill goes toward municipal services (police, library, DPW, administration) while the remainder goes to the Frenchtown Elementary School, the Del Val Regional High School and county agencies.
  • The borough’s 2026 municipal tax rate is 0.6744 per $100 of assessed home valuation, representing an increase of 2.9 cents ($.029 per $100 of assessed valuation) over the prior year’s municipal rate. This represents an annual increase of approximately $103 on a home assessed at $350,000 or $133 on a home assessed at $450,000. As mentioned previously, the municipal tax rate represents borough services only. The borough’s budget remains in compliance with New Jersey’s 2% levy cap law, given several budget items that are excluded from the mandatory cap, such as debt service, pension contributions, some health care costs and certain emergencies.
• Municipal spending: Total spending in the recently approved 2026 municipal budget is $2,886,272.08. The borough’s operating budget remained roughly flat (excluding grants and increases in health care costs) and the capital budget remained flat for 2026. Debt service increased 1.6% in 2026 due to bond anticipation notices for several borough infrastructure projects.
• Who does what: Several important officials contribute to the development and management of the borough finances:
  • The Chief Financial Officer, JANET PRIVETTE, manages the municipal treasury. She is responsible for developing the annual budget and ensuring all spending complies with strict New Jersey laws. She oversees long-term debt. Janet can be reached at: cfo@frenchtownboro.gov or by calling (908) 996-4524 – Option 3
  • The Tax Assessor, ERICA BRANDMAIER, determines the fair market value of every property in the borough to ensure that the tax burden is distributed fairly. She is responsible for maintaining property records and tax maps, processing property transfers and deeds, reviewing applications for tax exemptions or deductions (such as those for seniors, veterans or non-profits), and defending assessments during tax appeals. Erica holds office hours at Borough Hall on the first Monday of each month, 5:30-7 p.m. She can be reached at: ebrandmaier@frenchtownboro.gov or calling (908) 996-4524 – Option 4.
  • The Tax Collector, ANNE MARIE SILVIA, is responsible for calculating individual tax bills based on the assessment and the current tax rate, mailing out the quarterly tax bills, processing payments and managing interest on delinquent accounts, and conducting tax lien sales if taxes remain unpaid. Anne Marie Silvia holds office hours at Borough Hall on Mondays, 5:30-8:30 p.m. with appointments available upon request. She can be reached at: taxcollector@frenchtownboro.gov or by calling (908) 996-4524 – Option 5.

The municipal budget story is ongoing, and The Sun will provide updates and clarification as we receive more information throughout the year.