Beach Fee Towns Decry Proposal for Free Access

SEA ISLE CITY – Mayors and officials representing six Cape May County municipalities that charge fees to access their beaches converged in the gymnasium of the former Sea Isle City Elementary School to let their collective voice be heard. They do not support proposed legislation that would require beach towns, accepting federal or state funds for beach replenishment, to provide free beach access.
“As you know, Cape May County (economy) is generated by tourism. Tourism is our number one industry,” said Sea Isle City Mayor Leonard Desiderio. According to him, tourism in the county produces $5.1 billion annually.
“The beach is our treasure, the beach is our lifeline,” Desiderio said. “It’s something all of our communities rely on.”
Municipalities throughout the county have taken umbrage with bipartisan legislation proposed by Democratic State Senate President Stephen Sweeney (D-3rd) and Republican Sen. Michael Doherty (D-23rd).
According to Desiderio, the proposed legislation is “totally ridiculous.” He compared the logic of taking away government funding to municipalities that charge beach fees to taking away tolls from roads that receive state and local funds.
“I think all of us up here are in agreement that if there was legislation if you accepted federal or state funding for highways or roads the tolls would be lifted, you would see us in a different fashion.”
With shore towns still in cleanup and reconstruction mode from the aftereffects of Hurricane Sandy, local leaders questioned the timing of the proposed legislation.
“We went through a horrific storm. Many of our communities have businesses that are still out and homeowners who are still displaced. To put this type of legislation in now, while we are going to cleanup or rebuilding, is not right. It’s not right at any time, but especially now,” said Desiderio.
The bill, S-2368, has not yet been introduced. “We do not even have the writing on it,” said Desiderio. “But we wanted to jump out in front of this to show that we are opposed to it.”
Each of the mayors who spoke of S-2368 were consistent in stating that if beach fees are eliminated, property owners can count on one thing – higher taxes. Approximate tax hikes per $100 of assessed value might include 2.2 cents in Sea Isle, 1.5 cents in Stone Harbor, four cents in Ocean City, eight cents in Cape May City and one to two cents in Avalon.
Tourism plays a vital part in county residents’ employment. Desiderio, who is also a freeholder, said the tourism industry employs approximately 24,000 employees with 33,000 employees working in fields that are indirectly related to tourism.
Countywide, 47 percent, or 48,000 of residences are considered vacation or second homes.
Desiderio said between Cape May, Atlantic, Ocean and Monmouth counties, the four beach regions generate $18 billion in tourism revenue for the state.
“That figure is more than half of the state’s $35 billion total tourism income,” said Desiderio. He noted Warren County, which is represented by Doherty, generates only $161 million in tourism. “He also represents Hunterdon County,” added Desiderio. “That figure is $292 million.”
Cape May City Mayor Edward Mahaney stated beach tag fees generate approximately $2 million. He added the city initiated its beach fee program in 1977 and it has not been until this decade local taxpayers did not have to add to the coffers to subsidize beach operations.
“Currently, it costs Cape May nearly $2 million per year to maintain our two miles of oceanfront beaches, plus the local financial share of our municipality’s long-term, periodic beach replenishment projects which are conducted in partnership with the U.S. Army Corps of Engineers and the N.J. Dept. of Environmental Protection,” said Mahaney. He added the replenishments are focused on navigational, shoreline protection and ecosystem restoration missions.
Mahaney said without beach tag sales, Cape May’s beach replenishment costs would be borne by city taxpayers and not “the 200,000 tag holders who annually use Cape May’s beaches.”
The Cape May mayor said under state law of a 2 percent budget cap, if beach tag revenue was eliminated from its budget, the city would have no recourse other than to lay off its entire police or fire department.
“This is about public health, safety and welfare and making your town still be affordable so you can have a sustainable economy, just not during the summer but year round. You need people to live here, work here and people to visit,” he added.
“They are asking us to do more with less,” said Ocean City Mayor Jay Gillian. “You are asked constantly in the State of New Jersey to do more with less. This is exactly what they are asking us to do again and it’s just unacceptable.”
Gillian said elected officials from the northern portion of the state continue to mandate laws for South Jersey. “They have no idea what’s going on down here. They should be ashamed of themselves.”
He continued by saying the issue was about public safety. “People come to these beaches and they expect to be protected. We cannot keep doing more with less.”
The Ocean City mayor added the local businesses would be adversely affected if the legislation was voted into law.
“We cannot keep piling on the businessman,” said Gillian, who cited the burden of the higher minimum wage hike. “What they’re doing is no different than the minimum wage hike. You are burdening the business owners.”
Mahaney said Cape May County’s beaches, as well as the county itself, are an “economic engine” for Trenton. “We produce far more revenue that goes to Trenton than ever comes back to us.”
According to Gillian, timing of the proposed legislation was unacceptable.
“Sandy was not a Democrat or a Republican,” he said in reference to the October hurricane. “When she came in here she took us all out.”
The topic of beach tags has long been debated by residents, visitors and municipalities. Most beach towns in the county require beach tags. Several towns, including Strathmere, North Wildwood, Wildwood and Wildwood Crest do not have beach fees. None of the non-beach tag municipalities were asked to participate in the press conference, said Desiderio.
Mayor William Henefy of North Wildwood, told the Herald he remains opposed to the idea of charging to access the beach.
North Wildwood offers the same amenities that tagged beaches offer and also receives funding for beach replenishment.
“Part of the agreement with GWTIDA (Greater Wildwoods Tourism Improvement and Development Authority) is that we get in the neighborhood of $250,000 a year from the tourism tax for beach maintenance,” Henfey said. “When I became mayor I realized the beach is an expensive proposition and we got aggressive on (parking) meters.”
Henfey said parking kiosks were installed and the price of meters was increased. “This summer we collected $800,000 in meter fees, and I consider that to be my beach fee.”
He is a proponent of free beaches because of the negative effect the use of beach fees would have on North Wildwood’s economy. “I think that’s the way it should be. I can’t talk for other towns.”
Henfey said he understands the other municipalities’ predicament.
“In these tough economic times, how do you go into a town that’s been relying on beach fees and now just tell them they are going to lose $1 million in income? How are they going to cover that in their 2 percent CAP and how are you going to make up the expenses? It’s a difficult situation,” he concluded.