By Donald Wittkowski
Sea Isle City is offering property owners a triple dose of good news with its proposed 2019 municipal budget: Spending is down, the tax rate is being cut and the surplus is up.
Mayor Leonard Desiderio said the city’s financial outlook is so strong that he is proposing a half-cent decrease in the local tax rate this year and is already promising not to raise taxes in 2020.
The 2019 budget comes in at $24.6 million, down slightly from the $24.7 million spending plan last year.
A $500,000 reduction in healthcare premiums for retired municipal workers who are part of the city’s medical plan helped to cut the budget expenses for 2019, Sea Isle’s Chief Financial Officer Paula Doll said.
Under the 2019 budget, the owner of an average home assessed at $670,445 will pay $2,547 in local taxes this year. The figure does not include county and school taxes. The half-cent cut in local taxes will save the average homeowner about $35 for the year, Doll said.
The city will keep water and sewer rates the same in 2019, reflecting the sixth straight year there has not been an increase. The average homeowner pays $1,220 annually for sewer and water service, Doll said.
Doll gave a presentation on the mayor’s proposed budget to City Council during a public workshop Thursday. Council plans to scrutinize the spending plan before introducing it on Feb. 26.
Former Sea Isle Councilman John Divney was the only member of the public who attended the budget workshop. Looking around at the empty Council chambers, Divney joked, “I’m glad I got here early.”
Divney asked the Council members several questions about the budget and the water and sewer rates. Referring to Sea Isle’s strong financial position, he suggested that the city should consider cutting its water and sewer rates for the benefit of homeowners.
The city is benefiting from a $5.6 million surplus in the municipal budget. The nearly $9.1 million water and sewer budget, which is a separate spending plan, has a $750,000 surplus, documents show.
“We are in strong shape,” Doll said, referring to the surpluses.
Having a healthy surplus will help the city pay its expenses through the year and also provides a cushion in the event of an emergency, such as a hurricane, Doll pointed out. Sea Isle was hit with emergency expenses after Hurricane Sandy pummeled the Jersey Shore in 2012.
“God forbid if we have another Hurricane Sandy,” Doll said.
Sea Isle’s robust real estate market is a key part of the city’s strong finances. Investors and second-home owners are helping to drive the local economy, along with the city’s tourism market, Doll explained.
“We do benefit by people liking to be here,” she said of the vacationers and second-home owners. “Tourism is very important.”
Doll also credited the city’s “good management” for its financial strength. She said the municipal department heads are part of a team effort to keep the city on strong financial footing.
