CREST HAVEN – Cape May County will reduce its overall spending this year by $900,000, having eliminated more than $5 million in salaries and wages due to the privatization of the Crest Haven Nursing Home.
And despite a 2-cent tax rate decrease, the county will raise an additional $4 million through taxes in 2024 due to another increase in the ratables base.
The 2024 county tax rate will be 0.188, which is a drop from 0.208 last year. This is the second year in a row the tax rate has decreased.
The county’s ratables base, which represents the total assessed value of all taxable properties in Cape May, rose another $10 billion in 2023 after rising by $13 billion the year before. Information provided by the Cape May County Tax Board reveals that the county’s net value of ratables, which is the assessed value on record, and its true or equalized value are different figures.
In 2022, the county’s net value figure was $51 billion, while its true value was $63 billion. In 2023, the county’s net value was $52 billion, and the true value was $77 billion. In 2024, the county net value is $53.1 billion, but the true value jumped to $87 billion – a $10 billion increase.
County Treasurer Brittany Smith presented a $214.5 million budget to the Board of County Commissioners on Tuesday, Feb. 27, saying the county came into the 2024 budget in a strong position, adding $5 million to the county surplus.
Smith said $15 million is being used to pay down debt, and $17.7 million is being spent on capital projects. She said all departments did a good job keeping their costs stable.
“Normal operating expenses for departments stayed flat; everyone did a very good job keeping the line,” she said.
Salaries and wages for all departments are $57.4 million in 2024, down from $62.6 million last year. The privatization of the Crest Haven Nursing Home in part resulted in 96 fewer employees on the county payroll this year.
Operating expenses countywide are $76.1 million this year, down from $90.2 million in 2023.
The county bumped up its debt service payments from $24.6 million to $32.5 million. Smith said there is debt service that will “fall off” next year, so debt will “level itself down in 2025.” She said the county has borrowed about $251 million on a 15-year paydown plan.
Smith referred to the five-year capital plan aimed at improving the county bridge system, which has grown from $8 million in 2020 to $17 million today.
“We’re right in line with where we need to be for the bridge plan; we’re actually ahead of schedule, which is great,” she said.
“Again, salary and wages went down $5.1 million, and it looks like we’re in pretty good shape there. Most departments came in where they needed to be in revenue – some came over, some came a little under – but by and large they came in pretty steady; there weren’t any surprises with this year’s budget.”
Commissioner Director Leonard Desiderio said he liked seeing decreases.
“These days you don’t see too many decreases,” he said. “We are working hard to keep the taxes stable and have decreases.”
Desiderio said $165 million, or 77% of the $214.5 total operating budget, is funded by taxation. The county anticipates grants of $3.7 million and miscellaneous revenues of $24.8 million.
He said the budget includes a number of small and medium-sized capital projects that don’t require borrowing or capital debt service whose funding will increase by $7 million in 2024. The projects, which are in various stages of construction, include paving roads, fixing drainage and improving parks, the zoo, other recreation facilities and bridges.
There will be a public hearing prior to adoption of the budget on Tuesday, March 26, at 3 p.m. in the administration building meeting room.
Contact the author, Christopher South, at csouth@cmcherald.com or 609-886-8600, ext. 128.
