Mayor Marty Small, Sr., alongside the City of Atlantic City’s budget team and members of City Council, delivered an overview on May 6 at City Hall of the city’s 2026 municipal budget. The Small Administration initially proposed a budget that included a 2.3-cent tax decrease, however, that proposal was rejected by the State of New Jersey. As part of transitional aid requirements, the state has mandated that all municipalities receiving such aid, which includes Atlantic City, implement a two percent tax increase. Atlantic City’s total 2026 budget is $283,840,902.00 (grants included).
“This is not the news we hoped to deliver today, but some factors are beyond my control, and this is one of them,” said Mayor Small. “We presented a budget in Trenton that included a tax decrease and did not return home with one. While I’m disappointed our streak of six straight tax decreases under my watch has come to an end, I remain optimistic about the Great City of Atlantic City’s future. We’re going to continue working closely with our state partners to keep moving Atlantic City in the right direction.”
“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 City of Atlantic City Business Administrator Anthony Swan. “I understand the circumstances that led to this decision, but this will not change our mindset. The Small Administration remains fully committed to operating with the best interests of our taxpayers in mind.”
“Adjusting the budget to reflect an increase after working so hard to achieve a decrease was not easy, but it was done at the request of the state, which has been a strong partner to Atlantic City,” said City of Atlantic City Chief Financial Officer Toro Aboderin. “Mayor Small continues to be the strongest advocate for Atlantic City residents and our city employees. We made every effort to deliver more favorable news to our taxpayers.”
Also announced today, effective July 1, 2026, the minimum salary for city employees will increase from $31,200 to $35,000. In lieu of annual raises this year, all city employees will receive a one-time $3,500 stipend in their July paycheck. Additionally, each Atlantic City Police Department officer will receive a $5,000 one-time stipend in July, pending acceptance of the offer. These measures represent a one-year agreement as uncertainty remains surrounding Payment in Lieu of Taxes (PILOT) legislation.
The Atlantic City 2026 municipal budget will be presented to City Council at its May 13, 2026 meeting.
