LAKE COMO - A police department in a small New Jersey town must disband after voters rejected a budget that would have raised their property taxes by more than 22 percent.

Lake Como voters on Tuesday overwhelmingly rejected the referendum that exceeded the state's 2 percent tax cap. It would have cost about $2.4 million to fund the 10-member police department, costing the typical taxpayer about $700 more in municipal taxes.

The town will enter into a contract with neighboring Belmar to provide police services for about $914,000.

Mayor Brian Wilton tells the Asbury Park Press the police department would routinely go over its budget and the council had to take money from other places, including the surplus, to make up the difference.

Lake Como's business area is about a block long.