CAPE MAY – Deciding they could wait no longer, the Cape May City Council adopted the 2021 budget. The $20.8 million operating budget contains no increase in the local municipal tax rate.
The city introduced the budget, in March, but held off on adoption to gain greater clarity on how over $300,000 in American Rescue Plan Act (ARPA) funds may be used.
City Chief Financial Officer Neil Young told the council the final rules governing the use of the federal funds were still not issued by Trenton. He added that if the city waited much longer to adopt a budget, it would negatively impact property tax billing.
Unlike some other municipalities that are looking to the use of the ARPA funds to lower or avoid property tax increases, the city budget was not dependent on the new funds and the council decided to move ahead and adopt it.
In addition to the city’s operating budget, there are three utilities supported by user fees. Budgets for each of the utilities were adopted as part of the same process. They include $7.2 million for the water and sewer utility, $2.8 million for the beach utility, and $1.1 million for the tourism utility.
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