Ocean City Council Introduces $76.8 Million Budget

OCEAN CITY, NJ — Despite a nearly $3 million difference in the draft budget presented by Ocean City Mayor Jay Gillian in February and the budget introduced by city council Thursday night, there will be no difference in the proposed taxation between the two.

The tax levy remains at $51.8 million, up $3.8 million from last year. The average homeowner will still pay an additional $143 in municipal taxes annually under a 2.85 percent tax rate increase that translates to about an extra $36 a quarter.

The only difference is the budget introduced on Thursday night is $76,884,368.93, as opposed to the draft budget that was introduced at $79,657,919.38.

This is because $2,024,500 that was set aside for debt service in the draft budget was taken out prior to introduction after the city paid off numerous debts and received the last of its FEMA reimbursement related to Superstorm Sandy last year.

This is why Chief Financial Officer Frank Donato reiterated that the true indicator of the budget is the tax levy, as opposed to the bottom line on Thursday night. He said you may look at the bottom line and believe spending is “out of control,” but the true indicator is how much of a tax increase the budget includes.

The overall increase in the bottom line from 2016 to 2017 would be $1,414,870.14, an increase of about 1.87 percent.

This year’s tax increase is to help with a number of proposed projects throughout the island. Last month, city council unanimously approved a bond ordinance on second reading to appropriate $12,182,500 and borrow $11,573,375 in bonds and notes for various improvements.

“People want one thing: For us to fix the city’s streets, waterways and facilities,” Gillian said in his State of the City address at the time. “We still have a lot of work ahead, but I’m proud of what we’ve accomplished.”

On Thursday night, Councilman Michael DeVlieger reminded residents that each project will still be approved on an individual basis, and that there is no “blank check” for all projects.

Councilman Bob Barr praised the city for an aggressive plan that focuses on many of the problems in the Fourth Ward, which he represents.

Over the next month, city council will consider revisions to the budget during public meetings. The public hearing and final vote on the budget is set for April 27.

On Thursday night, city council also approved a proposed ordinance on introduction to exceed the municipal budget appropriations limit and establish a cap bank, an annual ordinance municipalities pass along with the budget.

This year, the state says municipalities may only increase their budget by 0.5 percent, one year after that number was 0. The ordinance allows municipalities to increase that limit to 3.5 percent over the previous year’s final appropriations, and bank the difference for future budgets.

This year. 3.5 percent amounts to $1,908,981.31. The city never uses that money, but Donato said that if the state continues to set that number at 0 and 0.5 percent, it may become necessary for Ocean City to do so in the future.

The public hearing and final vote on the ordinance is also set for April 27.

Ocean City Council also approved a consent agenda resolution to establish $22,142,407.45 in emergency appropriations, pending approval of the budget.

Image via Shutterstock