Avalon Mayor Offers, Council Gives OK to Introduce $27.3M Budget

AVALON — Mayor Martin Pagliughi presented his proposed $27.3-million municipal budget for 2011 to Borough Council, Wed. Feb. 9 and Council introduced the spending plan.
As introduced, the plan does not call for any municipal tax levy increase. The spending plan supports minimal infrastructure improvements in the borough on a pay-as-you-go basis. The budget will continue to deliver essential services for the health and welfare of citizens.
“Thanks to careful, long-term planning we are able to present a budget that does not require us to increase the amount of money to be collected from property taxes,” Pagliughi stated in a release. “In the current climate of fiscal restraints, Avalon is still able to draft a spending plan that remains balanced, funds essential services, improves the quality of life, and includes long-term financial planning.”
Last year, the borough’s municipal tax levy was $17.09 million. This year, the municipal tax levy remains unchanged.
However, the 2011 combined library and municipal tax rate will increase in Avalon to .237 cents per $100 of assessed valuation. The reason for the increase is the recent property reassessment that resulted in an approximate $1.6 billion decline in ratable base.
The borough “took a very proactive step by conducting its own property reassessment,” according to the release.
Avalon Borough Council Finance Committee, consisting of council members Chuck Covington and Dr. Nancy Hudanich, consulted with the county Tax Board and Avalon’s tax assessor, who noted that most property values had fallen well below assessed value. The reassessment reflects the regional and national real estate trends and results in a very fair and equitable tax rate based on the most recent and accurate property values.
The proposed 2011 municipal budget in Avalon totals $27,294,925, which includes the $3.9 million reimbursement for a previous beach fill.
By state statute, the final budget number must include funding that Avalon received during the summer of 2010 that was a reimbursement from the State of New Jersey for a beach fill project.
State statute requires that the reimbursement be taken as “Miscellaneous Revenue” and be offset in the next budget by a ‘like’ appropriation. The borough’s payment for the beach fill is offset by the receipt of the $3.9 million check, resulting in no impact to the Avalon taxpayer.
The 2011 budget also includes a $1.245 million transfer from the Avalon Free Public Library to the Borough’s current fund. State law mandates that a library’s excess surplus funds must be returned to a municipality and be applied to the tax levy. “I want to thank the trustees and director of the Avalon Free Public Library for doing a great job in our community,” Pagliughi stated. “It’s no wonder why the library has earned a five-star rating each of the past three years”.
In 2010, Avalon financed $495,000 in capital expenses that were paid for without incurring future debt. In 2011, Avalon will finance $620,000 in road improvements without borrowing money. Last year, Avalon saved taxpayers $350,000 on a water tank rehabilitation project by securing a near zero interest loan for the project.
Some other capital projects include the reconstruction of a portion of the borough’s boardwalk, the completion of the 39th Street water tank rehabilitation project, and the implementation of various energy-efficient upgrades at borough facilities. These energy-efficient upgrades are totally financed with grant dollars sought and obtained by the borough.
In 2011, Avalon anticipates receiving a major hydraulic beach fill project for the north end of Avalon. Approximately 270,000 cubic yards of sand will be placed on the north end beaches at very little expense to taxpayers courtesy of a partnership with the United States Army Corps of Engineers and the New Jersey Department of Environmental Protection.
Avalon’s cost share of this project will be approximately $150,000. “For the second consecutive year, Avalon will receive a very large beach fill while saving taxpayers millions of dollars,” Pagliughi stated. “In addition, the budget calls for exploring long term solutions to sand loss on north end beaches, including sand back passing and a groin study”.
The 2011 water and sewer budget totals $5.9 million, which also represents a zero-percent increase. It is important to note that the Cape May County Municipal Utility Authority’s service charge represents nearly half of Avalon’s water and sewer budget. The beach utility fund budget totals $1.356 million; an additional $40,000 increase in revenue is expected courtesy of a one dollar increase on the cost of seasonal beach tags in Avalon.
“I am very pleased to be able to present a lean, responsible budget to council while also completing important infrastructure projects and maintaining expected level of services,” Pagliughi stated. “Thanks to a working relationship with a council that watches every penny we spend, Avalon will continue to offer one of the lowest municipal tax rates in New Jersey while keeping us on solid ground for the financial challenges that will come each and every year”.