DEMAREST - Demarest residents rejected a referendum that would have hiked their taxes more than 2 percent, going over the cap that's been handed down by Gov. Chris Christie for all local governments.

The referendum was voted against by 87 percent of voters.

The referendum had been the subject of much debate, with some saying exceeding the tax cap was the only way to balance the borough's budget. Others argued that property taxes are already too high to consider another hike.

Mayor Ray Cywinski says the borough will hold meetings next week on how to slash the budget. The borough still has plans to save money by consolidating its police department with Bergen County Police, a move that has received mixed reviews from voters.

A date for the police merger referendum has not yet been set.

New Jersey Election Results:Essex County Hudson County Monmouth County State Elections