Mount Olive mayor addresses township tax increase, cites fund balance and rising costs
MOUNT OLIVE TOWNSHIP, N.J. (Morris County) — Mount Olive Township Mayor Joe Nicastro addressed what he called misinformation circulating on social media about property taxes, saying several financial factors contributed to a $204.36 annual increase for the average assessed home.
In a Facebook post, Nicastro said the previous administration did not increase municipal taxes for 11 years and that the Township Council, which he served on, generally followed recommendations from the mayor and administration during that period. He said that approach, in hindsight, was harmful to the township’s long-term financial position.
Nicastro said rising costs for health care, utilities, contractual salaries and other expenses, along with declining revenue from taxes and other fees, contributed to the increase.
According to Nicastro, the preliminary 2026 budget presentation projected a $48.68 annual increase for the average homeowner based on estimated revenue and anticipated expenditures.
During the statutory financial process, however, the township’s auditor identified discrepancies affecting the amount of available fund balance, Nicastro said. He said the administration was first notified of the issues by the auditor in March.
Nicastro said the township used approximately $6.6 million in fund balance to balance the 2025 budget, but only about $2.5 million was replenished. He said the situation was compounded by interfund transfers that were not cleared before the end of the year, requiring money that would normally have replenished the fund balance to instead address the resulting deficit.
The township entered 2026 with approximately $7.7 million in fund balance, according to Nicastro. He said that amount, while lower than in previous years, remains at a healthy level relative to the township’s operating budget.
Nicastro said ratables have leveled off, limiting growth in the tax base, while revenues have declined and costs have increased, particularly for health insurance, public safety salaries, pension obligations, utilities and capital improvements.
The township determined it was prudent to use approximately $3 million in fund balance rather than the roughly $5 million historically used to balance the budget, creating a need for additional recurring revenue, Nicastro said.
The result was a $204.36 annual tax increase for the average assessed home of $324,500, according to the mayor.
Nicastro said the township has taken corrective action, including retaining its auditors to assist the Finance Department with reconciliation and financial accountability. He said the department has also faced staffing challenges that contributed to an increased workload.
A corrective action plan has been established to address audit findings and recommendations, and the township is pursuing other revenue sources to reduce the burden on taxpayers, Nicastro said.
“The goal moving forward is simple: strengthen financial controls, rebuild fund balance, increase appropriate user-fee revenue, control expenditures, and reduce future pressure on property taxes,” Nicastro wrote.
Nicastro said residents seeking additional details can contact him directly by text at 973-378-1860.
