Cape May Works for Long Term Financial Stability

CAPE MAY — Mayor Edward J. Mahaney Jr., in his annual state of the city address July 1, said council will focus on long term financial challenges to maintain the quality of life in the city for residents and businesspersons in an economic climate “in which we can all still afford to reside here.”
The mayor spoke of a city administration that made strides for a totally inclusive government that takes input from its residents. He said council followed through on a promise of open and transparent government with five town meetings for input on the construction of a new Convention Hall.
During the past six months, the city has been working on obtaining permits, financing and final design for the new facility, said Mahaney. He said he expected the Convention Hall project should be put out to bid in August, a Coastal Area Facilities Review Act (CAFRA) permit received from the state Department of Environmental Protection in early September and demolition of the old building beginning in mid September with a planned opening in November 2010.
Mahaney said Deputy Mayor Niels Favre had joined a steering committee working with the architect and engineers for the new Convention Hall with the mayor.
Councilman David Kurkowski has helped organize Friends of the Convention Hall to raise money for extra items that will make the hall a first class site. Mahaney said the new facility would open as a “fully functioning hall.”
The mayor said he did not believe in presenting a long list of achievements in his state of the city address.
As a part of more open and transparent government, council members can add agenda items and opportunity has increased for public comment during council meetings, he said.
Mahaney said council was able to decrease a proposed local purpose tax rate increase from 2.1 cents to 1.26 cents per $100 of assessed value.
Mahaney said the city has maintained its A2 bond rating at a time when other municipalities are being downgraded because they used much of their surplus funds.
While three and a half city positions were eliminated, services have not been affected through cross training of employees, he said.
A Business Improvement District is operating on the Washington Street Mall to pay for promotion, upkeep and marketing, Mahaney noted.
He said the city submitted its affordable housing plan to the state on deadline, which is currently in the approval process with the Council on Affordable Housing (COAH).
The city’s Planning Board completed a master plan reexamination by a March 31 deadline.
“That allows us now with the COAH plan and master plan completed to move forward with the plan endorsement process, said Mahaney. “The plan endorsement process will absolutely restore our priority status for low interest loans and grants from the state and federal governments.”
He said the city has the opportunity to move forward with grant funds for American with Disabilities Act compliance for the beachfront. The project is a 70/30 split.
The project will provide handicapped access from street level to the Promenade and down to the dune line. If additional grants are approved, a second phase will go from the dune line to the high water line with a series of boardwalks and pavilions.
He said council is looking at long term financial planning dealing with state imposed 4 percent spending and tax levy caps. The city is able to generate about $3 million per year in surplus funds and apply to $2 million to the yearly budget.
Mahaney said the city needs new sources of revenue and additional shared services with neighboring towns.