By DONALD WITTKOWSKI
City Council on Tuesday unanimously introduced a $30.1 million municipal budget that will raise the local tax rate for Sea Isle City homeowners for the first time in eight years.
The proposed 2024 budget includes an increase of 4.3 cents in the property tax rate in response to higher inflation and mounting municipal expenses, Mayor Leonard Desiderio said.
During his State of the City address on March 12, Desiderio noted that Sea Isle was previously able to avoid a local tax increase for seven straight years through its “fiscally conservative approach to budgeting.”
However, inflationary pressures have driven up costs by about 20 percent in the last three years, prompting Sea Isle to seek higher taxes in 2024 in order to offer the same level of municipal services to the public, Desiderio said.
In addition to inflationary pressures, the city will also experience higher budget expenses for the fire department, emergency medical services division and summer employees such as lifeguards, seasonal police officers and Public Works Department personnel, he said.
The fire department is made up of volunteers, but for the first time in Sea Isle’s history the city will provide round-the-clock, year-round coverage by paying firefighters to be on duty at all hours at the firehouse, the mayor said. Up to this point, Sea Isle had been limiting the paid crews to overnight duty.
Under the proposed 2024 budget, the owner of a typical Sea Isle home assessed at $750,000 would pay an additional $324 in local property taxes annually. Overall, the total annual local taxes on a $750,000 home would be about $3,200.
When county and school taxes are added in, the total annual tax bill for a home assessed at $750,000 will be about $6,852, the budget shows.
City Council and the mayor’s administration collaborate on the budget before a final vote is taken on the spending plan by the governing body. Council has the power to make spending cuts or other revisions if it wants to pursue that option.
A public hearing and final vote on the budget are scheduled for the April 23 Council meeting. The Council members did not comment when introducing the budget by a 5-0 vote Tuesday.
Although a tax increase is proposed in the 2024 municipal budget, the city’s water and sewer rates will remain the same for the 11th consecutive year.
Jennifer McIver, Sea Isle’s chief financial officer, said the city’s finances remain strong overall.
“We’re still in great condition,” she said in an interview after the Council meeting.
Tax revenue of $21.2 million represents the budget’s greatest source of funding. Other major revenue sources include beach tag sales, construction code fees, franchise fees, parking charges and marina boat slip rentals.
Sea Isle used $3.3 million in surplus funding to balance the budget and has a $4.1 million surplus in reserve. McIver noted that it is critical for the city to have a significant surplus on hand in case there are emergencies or an extraordinary event such as the COVID-19 outbreak that could cut into Sea Isle’s municipal revenue.
“Savings count for a rainy day,” she said.
Sea Isle is not alone in seeking a local tax increase this year among Cape May County’s 16 municipalities. Leon Costello, Sea Isle’s budget auditor, said most of the county’s towns are raising taxes in 2024.
Costello blamed inflationary pressures for the local tax increases. He also said towns that have police and fire departments are dealing with higher expenses because of salary increases.
