Budget Wins OK from Council, Rate Still County’s Fourth Lowest

CORRECTION – During the Stone Harbor Borough Council budget hearing April 7, a slide used in the presentation indicated that the police salaries were up over $1,000 year-to-year from 2014. According to Borough Administrator Jill Gougher, “After final review, the overall increase is only $343” in the total for public safety salaries and that “police salaries were down $729.”
The slide presentation has been amended according to Gougher. The year-to-year comparison number correction in no way alters the 2015 budget numbers reported, including the local purpose tax levy.
STONE HARBOR – Borough Council approved a $14.6-million budget for 2015 at the April 7 meeting. This is an increase of just over $500,000 from 2014. The large majority of that increase went to capital improvements and represented the $300,000 down payment on the borough’s $6-million back-bay dredging project.
The budget raises the tax rate from $0.232 to $0.239 per $100 of assessed value, which still leaves the borough with the fourth lowest rate in the county. The borough used $1.2 million of its available surplus to fund the budget, a 15 percent increase in use from 2014. The added use of surplus, plus an increase in ratables and the accumulation of small declines in a variety of operating expense categories, helped maintain the levy.
At the public hearing on the budget, council members walked the public through sections of the budget. The presentations demonstrated the fiscal conservatism that was characteristic of the budget.
Administration and Finance saw an increase that was almost wholly the result of a rise in group medical insurance premiums tied to the State Health Benefits Program.
Recreation, Beach and Tourism’s budget was down from 2014, as was Public Works. The Natural Resource budget remained flat from the 2014 level. The Public Safety summary did show a year-to-year increase of just over $1,000, largely in salaries.
Leon Costello, borough auditor, led a discussion of the debt service in which he indicated, “General capital is in really good shape.” Highlights from the capital budget included the dredging project and $2 million allocated for a new Public Safety Building.
The Water and Sewer Utility budget saw an increase of $450,914. Two factors contributed to the increase, a rise in the county MUA fee of $300,000 and an increase in debt service of just over $150,000. Sewer and water rates and charges for utilities were raised at the same council meeting. Each will rise by $15 per quarter. This represents an increase of $120 per year for services. The new rates become effective next month.
In related business, the borough allocated $174,500 from a previous bond issue to improvements in various recreation and park facilities. It also introduced, on first reading, two bond ordinances. The first, for $5.3 million, is intended to refund obligations from 2006 for both the borough and the utility. The second represents a small issue of $133,000 for further improvements in recreation facilities.
Stone Harbor also became the latest municipality in the county to recognize the county designation as a Coast Guard Community, by declaring the first full week in May as Coast Guard Community Week. The resolution, initially passed by freeholders, has been making the rounds of municipal bodies gaining support for a gala celebration of the deep and enduring ties between the county and the Coast Guard.
The designation as a Coast Guard Community makes Cape May County the second such designated community in the country.
To contact Vince Conti, email vconti@cmcherald.com.