After six consecutive years with no increase in the local purpose tax rate, the Cape May City Council on St. Patrick’s Day introduced a 2026 budget that increases that rate by 5.5%.The unanimous council vote to introduce the budget sets up what auditor Leon Costello called a potentially difficult year coming in 2027. As well as hiking the tax rate, the budget runs close to the state spending cap, leaving little wiggle room for next year.In Cape May the budget includes the normal general fund appropriations, the portion of the budget supported in part by local taxes, along with three self-financing utilities that address specific areas of activity and expense.