Lavallette To See Slight Property Tax Increase Amidst Rising Costs

Lavallette Borough Hall (Photo: Daniel Nee)

Lavallette officials this week introduced the borough’s 2026 budget, which calls for a slight tax increase that was almost completely driven by one factor: the cost of health insurance.

The borough’s $11,113,344 annual budget was unanimously introduced by the council on Monday. Spending will go down 1.5 percent, however the tax rate will increase by 1 cent per $100 of real property value, representing an increase of about $87 for the owner of a home assessed at the borough’s average.

While officials cut spending, the cost of employee health insurance coverage skyrocketed this year, said Mayor Walter LaCicero. The insurance bill rose by a staggering 23.89 percent in a single year, translating to a cost increase for the borough of about $320,000.

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“There was more than a one-point increase just in the insurance,” said LaCicero, adding that the 1 cent increase in the tax rate represents about $288,000 in revenue.

Spending cuts were achieved through a re-worked shared services agreement that lowered the cost of running the municipal court by about $75,000, as well as a smaller debt service obligation as old bonds have been paid off, the mayor said.

“We’ve been decreasing our overall debt over the last several years,” he said. “The overall amount of bonding that’s outstanding has been decreasing over the last few years by $400,00 to $600,000 per year.”

Lavallette was also able to navigate the choppy waters of energy prices this year, with the budget covering the cost of the electric and water-sewer utilities. LaCicero said he does not anticipate having to raise rates for residents in 2026.

“Wer’re committed to keeping our taxes low and committed to decreasing our overall indebtedness,” said LaCicero.

Lavallette, for years, has boasted one of the lowest municipal property tax rates in New Jersey, often within the top five lowest in the entire state. Municipal taxes are separate from school and county taxes, which are set by their respective governing bodies. State statutes require a public hearing and second vote for formally adopt the budget at least 28 days after this week’s introduction. The hearing and final adoption will likely occur at the second council meeting in April. Detailed budget documents are available on the borough’s Finance Department website.