Atlantic City Council Set to Introduce, Likely Adopt 2026 Budget With State-Mandated Tax Increase
Mayor Marty Small Sr. says Atlantic City originally proposed a tax decrease before the state required municipalities receiving transitional aid to raise taxes by two percent.
ATLANTIC CITY — The City of Atlantic City is expected to introduce and likely adopt its 2026 municipal budget during the City Council meeting held on Wednesday, May 13, 2026, with officials warning residents to expect a modest tax increase after the state rejected an earlier proposal that would have lowered taxes.
Mayor Marty Small Sr. and members of the city’s finance team outlined the proposed budget during a presentation at City Hall on May 6, 2026, describing the increase as the result of state requirements tied to transitional aid funding.
The proposed 2026 municipal budget totals $283.8 million, including grants, according to a prepared statement. The Small administration initially submitted a budget to the State of New Jersey that included a 2.3-cent tax decrease. However, officials said the proposal was rejected because municipalities receiving transitional aid are required by the state to implement at least a two percent tax increase.
“This is not the news we hoped to deliver today, but some factors are beyond my control, and this is one of them,” Small said. “We presented a budget in Trenton that included a tax decrease and did not return home with one.”
If approved, the increase would end a streak of six consecutive municipal tax decreases under the Small administration.
Mark Tyler
Despite the change, city officials emphasized that Atlantic City’s increase remains lower than those seen in some other municipalities receiving transitional aid.
“Any municipality receiving transitional aid is required to raise taxes, and our increase is the bare minimum compared to other municipalities that are seeing significantly larger hikes,” said Business Administrator Anthony Swan.
Chief Financial Officer Toro Aboderin said the administration worked to minimize the impact on taxpayers while continuing to support city services and employees.
Raymond Tyler
The budget proposal also includes several workforce-related measures set to take effect July 1, 2026.
Under the proposal, the minimum salary for city employees would increase from $31,200 to $35,000 annually. City employees would also receive a one-time $3,500 stipend in place of annual raises this year. Atlantic City police officers would receive a separate one-time $5,000 stipend in July, pending acceptance of the offer.
Mark Tyler
City officials said the compensation adjustments are part of a one-year agreement as uncertainty continues surrounding future Payment in Lieu of Taxes (PILOT) legislation.
The Atlantic City Council meeting is scheduled for Wednesday, May 13, 2026, at City Hall.
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