West Cape May Faces 12% Tax Hike in Tough Budget Year

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The borough of West Cape May, New Jersey is facing a 12% tax hike in its 2026 budget due to rising costs, particularly for police services and solid waste disposal. Mayor Pam Dick said the borough explored other options for police coverage but the contract with the neighboring city of Cape May remained the best choice, even with a 33% increase in costs. The budget also includes new revenue sources like a 2% tax on local cannabis sales and funds from the liquor license trust.

Why it matters

West Cape May's budget challenges reflect the financial pressures facing many small municipalities, as rising costs for essential services like public safety and waste management outpace revenue growth. The tax hike will impact residents and businesses in the borough, highlighting the need for creative solutions to control costs and maintain services.

The details

West Cape May's 2026 budget includes a 12% tax rate increase, driven by a 33% jump in police service costs under a new contract with the neighboring city of Cape May. The borough previously had a very favorable agreement with Cape May to provide police coverage, but that contract was renegotiated with Cape May now charging based on the actual cost of services. Other major cost increases include higher tipping fees for solid waste disposal. To offset these rising expenses, the borough is tapping new revenue sources like a 2% tax on local cannabis sales and funds from the liquor license trust.

• The new police services contract with Cape May was approved earlier this year.
• The 2026 municipal budget is set for a public hearing and final vote on April 22.
• A final vote on the cap bank ordinance is also planned for the April 22 meeting.

What they’re saying

What’s next

The 2026 municipal budget for West Cape May is set for a public hearing and final vote on April 22, along with a final vote on the cap bank ordinance.