ORDINANCE NO. 26-04

AN ORDINANCE TO EXCEED THE MUNICIPAL BUDGET APPROPRIATION

LIMITS AND TO ESTABLISH A CAP BANK PER (N.J.S.A. 40A: 4-45.14)

FOR CALENDAR YEAR 2026

WHEREAS, the Local Government Cap Law, N.J.S. 40A: 4-45.1 et seq., provides that in the preparation of its annual budget, a municipality shall limit any increase in said budget to 2.0% unless authorized by ordinance to increase it to 3.5% over the previous year’s final appropriations, subject to certain exceptions; and,

            WHEREAS, N.J.S.A. 40A: 4-45.15a provides that a municipality may, when authorized by ordinance, appropriate the difference between the amount of its actual final appropriation and the 3.5% percentage rate as an exception to its final appropriations in either of the next two succeeding years; and,

            WHEREAS, the City Council of the City of Ocean City in the County of Cape May finds it advisable and necessary to increase its CY 2026 budget by up to 3.5% over the previous year’s final appropriations, in the interest of promoting the health, safety and welfare of the citizens; and,

            WHEREAS, the City Council hereby determines that a 3.5% increase in the budget for said year, amounting to $2,721,234.74 excess of the increase in final appropriations otherwise permitted by the Local Government Cap Law, is advisable and necessary; and,

            WHEREAS, the City Council hereby determines that any amount authorized herein above that is not appropriated as part of the final budget shall be retained as an exception to final appropriation in either of the next two succeeding years.

            NOW, THEREFORE, BE IT ORDAINED, by the City Council of the City of Ocean City, in the County of Cape May, a majority of the full authorized membership of this governing body affirmatively concurring, that, in the CY 2026 budget year, the final appropriations of the City of Ocean City shall, in accordance with this ordinance and N.J.S.A. 40A: 4-45.14, be increased by 3.5%, amounting to $2,721,234.74, and that the CY 2026 municipal budget for the City of Ocean City be approved and adopted in accordance with this ordinance; and,

            BE IT FURTHER ORDAINED, that any that any amount authorized hereinabove that is not appropriated as part of the final budget shall be retained as an exception to final appropriation in either of the next two succeeding years; and,

            BE IT FURTHER ORDAINED, that a certified copy of this ordinance as introduced be filed with the Director of the Division of Local Government Services within 5 days of introduction; and,

            BE IT FURTHER ORDAINED, that a certified copy of this ordinance upon adoption, with the recorded vote included thereon, be filed with said Director within 5 days after such adoption.

            This ordinance shall take effect in the time and manner prescribed by law.

The above Ordinance was passed by the Council of Ocean City, New Jersey, at a meeting of said Council held on the 23^rd day of April, 2026. Said Ordinance will be considered for adoption after an open public hearing to be held on Thursday, May 21, 2026 at 6:00 p.m. in City Hall, Council Chambers, Ocean City, NJ 08226. Said ordinance will be made available in the Clerk’s Office for the members of the general public for copies and or review. Melissa Rasner, RMC, City Clerk.