Avalon Tax Rate Dips 12% as Spending Increases

AVALON – With the introduction of its 2018 municipal budget Feb. 28, Avalon property owners will see a 12 percent decrease in the local property tax rate. 
The rate is projected to move from $0.226 to $0.199 per $100 of assessed value.
The decrease in the tax rate was accomplished as the 2018 budget increased the appropriations for operating expenses.
The “magic” that allows this to happen is the result of the 2017 revaluation of property.
According to borough Chief Financial Officer James Craft, property valuation for the borough rose by $1.4 billion. That larger tax base allows for lowering the local tax rate.
Before the reevaluation, assessed property values in the borough totaled $7.5 billion. The reevaluation resulted in that number moving to $8.9 billion.
Even with the lower tax rate, the projected revenue from the municipal tax will increase because of the higher overall assessment.
The new budget proposes an increase in operating expenses of $617,000 or 3.7 percent. It also calls for increased appropriations for capital improvements. 
With debt service projected decreasing by $1 million, the increases elsewhere still leave the total 2018 appropriations just over $300,000 less than in 2017.
Total appropriations for the water and sewer budget are basically the same as in 2017 with the amount needed from the general budget decreasing by two-thirds to $213,357.
The borough continues to move the utility toward self-liquidating status. The total appropriations for the utility amount to $6.6 million.
The beach utility projects an $80,000 increase in spending for 2018, requiring an increase in the contribution required from the general budget of just over $100,000.
The utility budget projects actual revenues at $1.23 million against expenses of $1.59 million. The deficit of $356,000 is what is covered by funds from the general budget.
A hearing on the budget is scheduled at the March 28 council meeting.
Seven Mile Island
Stone Harbor also saw an increase in overall borough valuation this year, driving total assessed value there up by $364 million. 
Stone Harbor, which is about half the size of Avalon, has a total assessed value of $4.8 billion.
With the growth in valuation in Avalon and Stone Harbor, the assessed value of the property on Seven Mile Island stands at $13.8 billion, or just under $2 billion per square mile.
To contact Vince Conti, email vconti@cmcherald.com.