STONE HARBOR – The Borough Council is considering withdrawing from the county library system, so it can use funds raised by the library tax for other allowable purposes.
During a report from the council’s Administration and Finance Committee Nov. 3, council member Ken Biddick said the borough is seriously considering an exit from the county system. There was no talk of dissatisfaction with the services of the county system; Biddick was clear that the reason for such a move would be the ability of the municipality to divert surplus funds raised by the library tax for use in allowable areas of the general fund budget.
The county library system has eight locations serving 14 of the 16 municipalities that pay into the county library tax.
Ocean City and Avalon maintain separate libraries for their own residents. They each charge a library tax that has a minimum level set by state law. The fact that that minimum tax rate is calculated on the equalized value of the real estate in each municipality provides the libraries with more funds than the libraries budget for their needs.
The Ocean City library tax rate of $0.06 in 2025 and Avalon’s rate of $0.057 produce estimated revenue in Ocean City of $7.7 million and in Avalon of $5.8 million. According to the county tax board, the rate paid by Stone Harbor residents as their county library tax in 2025 is $0.047.
The total budget of the county library system in 2025 is $15.5 million, with $7.4 million for personnel costs, $6.4 million in operating costs and $1.7 million in capital funds. That budget is supported 98% by taxpayer dollars from the municipalities that are part of the system.
By contrast, Ocean City returns to its general fund $3.8 million of the $7.7 million collected from its municipal library tax. Avalon returns to its general fund $2.4 million of the $5.8 million collected.
As Biddick explained it, if Stone Harbor leaves the county system it too will have a minimum library tax rate set by the state that will produce more than the municipal library requires, giving the borough a revenue stream outside the boundaries of the state tax levy cap.
The county library system provided Stone Harbor with a new library building in 2017. The 9,400-square-foot structure replaced a tiny 750-square-foot facility in Borough Hall. Whether there will be a cost to the borough for the building if it leaves the system is not clear at this point.
No ordinance has been introduced and no further details have yet been shared with the public, but Biddick said withdrawing from the county library system was one of the “big things we need to get done.”
Contact the reporter, Vince Conti, at vconti@cmcherald.com.
