Beyel Delivers ’10 Budget Message at Freeholder Meeting

The following budget message was delivered by Freeholder Director Daniel Beyel at the Jan. 26 meeting during which the 2010 county budget was introduced:
On behalf of the Cape May County Board of Chosen Freeholders – I’d like to offer this year’s message introducing the 2010 county budget.
This budget represents a full year of a careful and comprehensive review of county operations to cope with these difficult economic times.
Not only did we witness another year of revenue loss from transfer fees at the County Clerk’s office, we had a jolting 75% reduction in our interest on investments. At the same time, we had a $1.7 billion loss in our ratable base. This staggering loss is over three times more than our last ratable decline fifteen years ago.
As everyone knows, Cape May County isn’t unique with its financial losses. Just about every municipality, county, the state as well as the nation is feeling the effects of our prolonged gloomy economy. But difficult circumstances forces change. And quite often, changes can make things better.
In our assessment of county operations, we have made changes in delivering services that are more efficient and less costly. These changes have allowed us to keep our operating expense increase less than one percent. More importantly, we have been able to abolish 41 positions with an estimated savings of $2 million. We were also able to keep our Heath Care costs from increasing.
Despite the decline in our revenues and severe loss in our ratable base, the County’s entire budget increase is less than one percent.
At this point – I’d like to express the Board’s gratitude to everyone in county government for their sincere efforts and productive role in getting us where we had to be for the 2010 budget.
For the third year in a row, department heads maintained or cut their budgets. In most cases, the departments with increases had corresponding revenue to offset the amount.
The specific overview breakdown of this year’s budget in rounded-off dollars is as follows:
1. The Total County Budget for the Year 2010 is $141.9 million compared to the adopted
2009 Budget of $140.5 million.
Total operating expenses are $70 million reflecting an increase of $348,000. Total Salaries
and Wages are $46 million having a modest $350,000 increase. The total budget,
operating expenses and salaries and wages increases are all less than one percent.
2. The amount of money to be raised by property taxes to support the 2010 budget is $92.5
million compared to $89 million for the year 2009. The amount of revenue other than
property tax used to support the budget is $49 million.
3. The budget uses approximately 51% of our surplus. Specifically – $11.1 million of the
available $21.8 million while reserving $10.7 million.
4. The County equalized tax rate for 2010 will be $17.30 cents per $100.00 of assessed
value. This is a 1.2 cent increase over 2009. It should be noted that the loss of ratables
represents slightly under half of this increase. Although it will vary depending on the ratio
of assessed value to true value in each of the County’s sixteen municipalities; an average
taxpayer will pay $173.00 for $100,000 of property assessment.
5. The total amount of estimated ratables for the Year 2010 is $53.4 billion compared to
$55.1 billion in the year 2009. Again, this is a $1.7 billion reduction.
These are the highlights of this year’s budget. I believe it continues to exceptionally serve both the residents and visitors of Cape May County. Notwithstanding the 1.2 cent increase in the tax rate, it sustains our outstanding tax record while keeping our services among the finest in the state.
That being said, it’s time we begin the 2011 budget. We will use the same approach that we took in reaching the appropriate and responsible budget that we are introducing today. Task Forces will expand their reviews to secure more cost savings. We will use these challenging times to change the face of county government with new ideas, innovations and different methods in getting things accomplished and services delivered.
The 2010 Budget complies with the New Jersey “CAP” Law. Public Hearing on the Budget will be held on February 23, 2010 at 4:30 P.M. in the Freeholders’ Meeting Room at the County Administration Building. Public comment and recommendations are welcome. In addition to being on hand at the Office of the Clerk of the Board at the Administration Building – all financial documentation pertaining to this proposed but will be accessible on the county web site at capemaycountygov.net
In closing – I would – again – like to personally thank my fellow Freeholders as well as department heads – county employees and the budget team for your commitment to the taxpayers of this county and the residents who rely on county services.
And again this year, I most importantly want to express the Board’s gratitude to the citizens of Cape May County for giving county government both the opportunity and the resources to serve you.
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The following release regards the county budget:
Cape May County Freeholders today introduced the 2010 county budget calling for a tax rate increase slightly over one cent. The county saw its revenues from real estate transfer fees reduced for the fourth straight year to slightly under $4 million. This is almost $6 million less than 2005 when the county was at its high point. Adding to the financial difficulties, the county ratable base fell for the first time in fifteen years. The value of county properties went down $1.7 billion. A seventy-five percent reduction in interest gave additional troubling numbers.
Despite the gloomy revenue side of the budget, the Freeholders were pleased that they kept a tax rate increase so low. Freeholder Director Daniel Beyel said, “All our revenues were significantly down and the staggering loss in ratables were hard to overcome. But this budget represents a full year of a careful and comprehensive review of county operations to cope with these difficult economic times.”
Beyel noted that the county’s proactive approach allowed the county to make significant cuts to keep the low tax rate increase. “In our assessment of county operations, we have made changes in delivering services that are more efficient and less costly. These changes have allowed us to keep our operating expense increase less than one percent. More importantly, we have been able to abolish 41 positions with an estimated savings of $2 million. We were also able to keep our healthcare costs from increasing,” Beyel said.
The introduced county budget for 2010 is $141.9 million reflecting an increase of $1.27 million. The county tax levy rose from $88.7 million to $92.5 million. The 2010 county tax rate will be 17.3 cents. That means that a taxpayer with a true assessment will pay $173.00 per $100,000 value of property. Balancing the budget uses $11.1 million of the county’s $21.8 million surplus.
Beyel concluded, “Despite the decline in our revenues and severe loss in our ratable base, the county’s entire budget increase is less than one percent and I anticipate that the new tax rate of seventeen cents will remain the lowest in the state.”
Public comment and adoption of the budget is scheduled for February 23rd at 4:30 p.m. in the County Administration Building. Besides being on hand at the Office of the Clerk of the Board at the Administration Building, the proposed budget will be accessible on the county website at capemaycountygov.net.