Which of the following is NOT an exception to the Municipal Cap Law increase?

The Municipal Cap Law is designed to limit the annual increase in municipal budgets in New Jersey, generally allowing for a maximum increase of 2% over the previous year's budget. However, certain exceptions to this cap allow municipalities to exceed the limit under specific circumstances, ensuring they can manage unforeseen financial pressures and obligations.

Debt service refers to the costs related to repaying borrowed funds, which municipalities must meet and is exempt from the cap to ensure that debt obligations are fulfilled. Emergency appropriations are also exempt, as they may be necessary for immediate response to unexpected events, such as natural disasters or other emergencies, ensuring that municipalities can efficiently allocate resources as needed when facing crises.

Increases in health insurance costs can be particularly significant for municipalities. The law recognizes that these rising expenses are outside the government's control, allowing municipalities to adjust their budgets accordingly to account for necessary changes in health care costs, which is vital for maintaining employee benefits and ensuring a stable workforce.

On the other hand, an increase in property taxes is subject to the cap and does not fall under the exceptions outlined by the Municipal Cap Law. Property taxes are a primary source of revenue for municipalities, and allowing unrestricted increases without accountability would undermine the purpose of the cap, which is to protect taxpayers and maintain fiscal