2026 BUDGET

To: The Montgomery Township Committee, Montgomery Budget Committee and Montgomery Staff

From: The Undersigned Residents and Taxpayers of Montgomery Township, NJ.

 

A. Background and Context

Recent reporting by The Montgomery News has highlighted warnings from the Township’s Chief Financial Officer that the 2026 municipal budget may be one of the most challenging in recent history. The anticipated strain is driven by rapidly rising non‑discretionary expenses, including employee benefits, utilities, pensions, and contractual obligations, which may necessitate a property tax increase.

Montgomery Township already has one of the highest property tax rates in Somerset County, placing growing affordability pressure on residents, particularly seniors, young families, and households on fixed incomes.

For additional context, residents are encouraged to review the Montgomery News article:

“Montgomery Residents—Don’t Be Surprised if There Is a (Property) Tax Increase This Year.”

We respectfully ask you to sign this petition and attend the Meeting in-person on April 16, 2026 at 7:00 PM where CFO will present the proposed 2026 municipal budget. We plan to formally present the petition to the Township. Meetings will be held at 100 Community Drive, Skillman, NJ 08558.

The Township Committee is scheduled to vote on adoption of the budget at its May 14, 2026 meeting starting at 7:00 PM

 

B.  Key Resident Pain Points

Montgomery Township residents are increasingly concerned about the rising cost of living, growing municipal inefficiencies, and the lack of timely reforms to address these challenges. As taxes, utility bills, and administrative burdens continue to rise, many residents feel that the current system places an unsustainable financial and practical strain on households

 

1. High Property Taxes

   Montgomery Township already carries one of the highest property tax rates in Somerset County, creating a significant and growing financial burden for residents. Continued increases driven largely by rising non‑discretionary municipal costs are placing mounting pressure on household budgets and threatening long‑term affordability.

   Montgomery Township recorded the highest township (portion) property tax rates from 2023 through 2025 when compared with peer municipalities. See Appendix 1 for detailed comparisons. Montgomery Township had higher annual salary increases than all peer municipalities during the 2023–2025 period. Supporting data are included in Appendix 2. In 2025, Montgomery Township experienced the highest percentage growth in combined salary and benefit costs among comparable municipalities. See Appendix 3  for detailed comparisons.

2. Rising Sewer Utility Costs

   Montgomery Township’s sewer bills are significantly higher than neighbouring townships because Montgomery uses a usage-based billing system, while most of the townships charge a flat annual sewer fee.

   Montgomery Township has the highest estimated annual sewer cost when compared with similarly situated municipalities. Refer to Appendix 4 for detailed comparisons.

3. Inefficient Permitting Process

   Montgomery’s permitting process remains largely manual, paper-driven, and significantly less efficient than the modern, fully digitized system used in Princeton. While our staff work hard within the constraints of the current workflow, the lack of an online platform leads to slower turnaround times, higher administrative burdens, and unnecessary delays for residents.

   Montgomery Township’s permit process and systems require digitization. Comparable municipalities have already implemented digital permitting platforms. Refer to Appendix 5 for detailed comparisons.

 

C. Request for Actions

Given the unprecedented rise in non-discretionary municipal costs including double-digit increases in health benefits, utilities, pensions, and police contractual obligations Montgomery cannot continue operating under a business-as-usual approach. To maintain fiscal stability and protect residents from further tax escalation, the Township must commit to a targeted reduction of at least $3 million in the upcoming 2026 budget.

 

1.10% reduction in discretionary and controllable spending

We formally request that the Township Committee implement an immediate, mandatory 10% budget reduction across all municipal departments, including administrative, operational, and professional-service categories.

 

2. Immediate Hiring Freeze & Headcount Moratorium

To ensure responsible fiscal stewardship, we recommend instituting hiring freeze and headcount moratorium across the municipal government. 

3. Sewer Bill Relief 

We urge the Township Committee to take immediate action to reduce the monthly utility burden on Montgomery residents:

Explore outsourcing or regionalizing sewer utility operations, as Montgomery’s sewer costs remain significantly higher than those in comparable municipalities.
Given that Montgomery’s sewer charges are significantly higher than those in neighboring municipalities. Exploring partnerships, shared-service models, or third-party operators may substantially lower long-term operating costs.
 

4. Municipal Permit & Process Reform.

To improve the effectiveness and ease of doing business and maintaining property in Montgomery, we request the following reforms:

Streamline and modernize the permitting process by eliminating unnecessary red tape and making it easier for residents and contractors to file and track permits. This should include a formal review of Princeton’s permitting process and technology platform to evaluate implementing a similar modern, efficient system in Montgomery.
Publish clear, documented steps for every type of work requiring a permit, so residents and contractors know exactly what is needed before starting a project. 
Initial review and feedback to be provided within 3 Days to go over and identify if the application is complete and in good order. 
Implement a “10-Day review and response” for good order applications with standard residential permit reviews to ensure predictable timelines and faster turnaround for homeowners and small projects.

 D. SIGNATURES OF RESIDENTS

By signing, I certify that I am a resident and/or taxpayer of Montgomery Township, NJ, and I support  the above requests for fiscal responsibility, prudent cost control, and administrative modernization, in order to protect affordability and ensure the Township’s long‑term financial health.