Slight Tax Increase Planned For 2023 Ocean City Budget

OCEAN CITY, NJ — Citing rising costs across the nation, Ocean City's proposed budget for 2023 will include a small tax increase, Mayor Jay Gillian said in his annual State of the City address.

"Our responsible budgets make sure that we are always prepared for the good years and the bad years," Gillian said, noting that Ocean City prides itself on being "fiscally conservative."

But inflation and increased costs made this year's $98.9 million proposed budget difficult.

"Projected salary increases under new union agreements, increased pension costs, and the increases associated with our aggressive capital improvement program provide a challenge to our budget this year," he said.

The new budget has a 1.7 cent tax increase, according to Chief Financial Officer Frank Donato. A homeowner with a house assessed at $500,000 would pay an extra $75 in taxes under the budget, he said.

Finances stayed strong due to $262 million in new tax ratables and a growing population in the off-season, Gillian said.

Increased beach tag prices, potential increased parking costs and changing healthcare providers has helped offset costs, he said.

"This year's budget will help us invest in the capital improvements, enhanced services and public safety measures that define the quality of life in 'America's Greatest Family Resort,'" Gillian said.

Infrastructure improvements are underway and more are planned, along with a new public safety building.

"Without going into too much detail right now, our plan will involve adding a substation at 8th Street and Boardwalk and converting the current police station on Central Avenue into a state-of-the-art facility," Gillian said.

Donato will give a more detailed budget presentation at the March 23 City Council meeting. The budget will then be officially introduced in April.

"We have a lot of momentum going and we are fully prepared for another productive year for America’s Greatest Family Resort," Gillian said.

Read the whole State of the City report here and check out the 2023 budget here.