SUSSEX — The Sussex Borough Council unanimously approved an ordinance to establish a 3.5 percent Cap BanK, which will amount to $26,261 on March 18.
According to New Jersey state law, a cap bank allows the borough to raise its budgeted expenses by 3.5 percent in case of an emergency. This helps the borough avoid going through additional steps with the state when unforeseen circumstances occur.
According to Chief Financial Officer Elke yetter, the cap bank will allow the borough flexibility when crafting its budget.
The borough’s budget is flat between 2013 and 2014 and state law says the budget can track 3.5 percent, which can be used within the next two budget years.
Municipal governments in other states must raise their budget each year or lose the money.
Banking in New Jersey means the borough is not required to increase the budget amount, but may wait and increase it on an as needed basis.