MONTVALE, N.J.—The Borough Council approved a $25 million local budget for 2026 that increases municipal taxes by $249 on an average assessed home, officials said May 14.
The budget increases taxes on an average assessed home by $248.90 per year, or $20.74 per month, Councilman Timothy Lane said. In Montvale, the average assessed home is $551,726, Administrator Joe Voytus said.
The council voted 5-0, with Councilman Douglas Arendacs absent, to approve a 2026 budget of $25,001,683, which includes a local tax levy of $16,385,549. Lane provided a detailed presentation on the budget.
Lane said the major cost drivers in the 2026 budget include sewage disposal, up 13%; fire hydrant service, up 11%; general liability insurance, up 9%; state pension obligations, up 8%; utilities, up 7%; police contractual increases, up 7%; workers’ compensation, up 6%; police dispatch, up 6%; employee health insurance, up 33%; and debt service, up 23%, primarily related to the DePiero Farm purchase.
He said Montvale previously had multiple years with no tax increases, consistently kept tax increases below the inflation rate, and adopted a conservative budget approach that has kept the borough financially strong.
Lane said the municipal open space fund, approved by voters in 1999, has invested $2.6 million in open space, recreation, and historic preservation efforts. Recent highlights include acquisition of the Octagon House, construction of the Montvale Community Garden, and the Huff Park Pavilion, he said.
While presenting budget numbers, Lane showed an illustration of how $100 of the local property tax bill breaks out. It shows $24.43 for municipal government; 74 cents for municipal open space; $1.70 for the public library; $35.28 for local schools; $26.76 for the regional high school; and $10.72 for county government.
Lane told Pascack Press, “This year’s budget represents the borough’s need to address a number of increasing costs, notably employee health insurance and benefits and debt service. We made a decision to purchase available property for community use, and though we are absorbing the costs of purchase now, adding to the property owned by Montvale adds tangible value to our community.”
Serving on the finance committee were Lane, Mayor Mike Ghassali, Councilman Chris Roche, CFO Matthew Cavallo, and Voytus.
Possible data center dinged in public comments
About 15 speakers, including two residents, spoke out against a potential data center proposed for a 34-acre tract at KPMG’s property as part of the borough’s fourth-round affordable housing plan.
However, Ghassali told them the fourth-round plan would not allow an artificial intelligence data center to be built, but rather a “regular data center” that may be used by financial institutions, communication companies, and banks. The mayor said such facilities do not use the same structure as a larger AI data center.
He said Montvale does not want an AI data center but instead a regular data center. He said there currently is no tenant, no plan, and no agreement on any regular data center in Montvale.
Fair Share Housing Center has opposed the use of KPMG’s site for a data center, citing the shortage of affordable housing. The borough’s fourth-round plan, which includes a potential data center, is being challenged by Fair Share Housing Center in Superior Court.
Voytus confirmed that a case management conference will be held May 27 and that a case hearing is tentatively scheduled for June 22 on Montvale’s fourth-round plan.
Previously, Ghassali told residents that KPMG’s future developer, S. Hekemian Group, agreed to construct 50 affordable units whether 250 units of housing are built at KPMG or a data center is pursued.
In a late April email to residents, Ghassali said the borough’s fourth-round plan for approximately 55 acres of Hekemian parcels would include 685 total units of housing, including 109 affordable units; or a data center with 485 total housing units, including 109 affordable units.