Ocean City Council Adopts New Budget With Tax Increase

OCEAN CITY, NJ — After a debate, the Ocean City Council voted to approve the $89.6 million 2022 municipal budget that includes a tax increase.

Added was a $770,000 payment to the city's trash contractors, Gold Metal Environmental. The budget was amended two weeks ago to settle the ongoing negotiations with the contractors. Originally introduced in March, the budget at first had no tax increase.

The average home is valued at $600,000, so the increase would be $41.33 annually, city auditor Leon Costello previously said.

The budget barely passed with a 4-3 vote. Karen Bergman, Pete Madden, Terry Crowley Jr. and Jody Levchuk voted for the budget, while Bob Barr, Tom Rotondi and Keith Hartzell voted against, after a long discussion about said budget.

"That's not a recommendation we took lightly," said Frank Donato, Ocean City's chief financial officer. He said the council tried to keep the zero increase, but found this financial move "prudent."

Some council members disagreed with the increase and wanted another option, while others said they had faith in what the administration recommended.

Bob Barr, council president, said he was "not comfortable" with the change after the budget was proposed with no tax increase.

"For that reason, I'm not going to support this," Barr said.

Councilman Tom Rotondi shared his concerns that administration had known a tax increase would be necessary prior to the May 10 election but did not share. However, City Business Administrator George Savastano said that the administration did not know about the increase until after the election. Savastano also laid out the schedule of meetings and communications between administration and Gold Metal Environmental for transparency.

Some council members asked why administration could not use Covid-19 funding for the expense. Donato explained that the funding is used for a one-time expense, which payment to a trash contractor is not. He added that the administration is planning to use the Covid money on a pumping station. Donato also said that retaining the budget surplus would help pay for increasing costs in 2023.

Councilwoman Karen Bergman said she did not like the tax increase, but had faith in the administration, agreeing with it because they said it was necessary and what was best for the taxpayer.

Councilman Pete Madden said it was the council's job to make a sound decision without emotion or politics "on the best interest of Ocean City."