Cape May’s $18.2-Million Budget Introduced, Tax Rate to Remain Level

CAPE MAY – Cape May City Council formally introduced its 2017 municipal budget Feb. 21. The operating budget calls for $18.2 million in appropriations.  
There is no projected change in the local tax rate of $.34 per $100 of assessed value. The assessed valuation in the city rose by a little over $1 million to about $2.8 billion, allowing for a small increase in the projected tax revenues even at the current tax rate.
The amount to be raised through taxes is about $9.5 million according to the budget, which is available here.
Cape May has routinely benefited from grant funds awarded after the municipal budget is approved and entered into the budget through council resolutions throughout the year.
This budget shows a decrease in the revenues from state and federal sources of $1.3 million which represents funds that are not yet awarded for the budget year.
Appropriations were reduced accordingly in that category of grants and will be adjusted as awards are made.
The city is using  $166,000 more in surplus funds toward the 2017 budget, with the remaining balance the same $1.7 million as it was when funds were used last year.
Interim City Manager Neil Young said at an earlier presentation of his budget that he fully expects the surplus to return to $4 million by the end of the budget year.
The budget is still subject to change. A public hearing will be held at the March 21 council meeting in City Hall at 6 p.m.
Seating Ordinance
Council introduced the proposed ordinance concerning temporary seating for consumption of food and beverages.
This ordinance has been the subject of study by a city-appointed committee that included municipal officials, residents, and representatives from the business community. The group began meeting in June of 2016.
The purpose of the ordinance is to regulate seating. This action follows years of growth in outdoor seating by businesses in the city.
Council member Beatrice Pessagno indicated that the goal was to meet public safety concerns in a way that was “fair and equitable” to all concerned.
A hearing will be held on that ordinance when it has a second reading March 21.
Cape May Pool
The long process of reconstruction of the swimming pool at the Cape May Elementary School moved closer to commencing.
The work on the pool, used by city residents as well as pupils in the school, will benefit from the municipality’s borrowing power through a bond initiative that allows the project to be funded at lower rates than the school district would otherwise be able to obtain.
Two bids were received within the engineering estimates for the project, and an award was made to W.J. Gross Inc. with a bid of $1.66 million. The project will cover pool, filtration and locker room renovations.
Wine at the Carriage House
Council approved a resolution of support for the application of Cape May Winery to the state Alcoholic Beverage Commission (ABC) for permission to sell wine through an outlet at the Carriage House, a restaurant, and shop that is part of the Physick Estate. 
The city’s support was needed since the property is leased from the municipality.
The hope is that the application can move swiftly enough through the ABC approval process to have an outlet in place for this summer.
Beach Theatre Land
Ex-mayor Jerry Gaffney asked to have a proposal read during the public comment period concerning the land where the Beach Theatre once stood.
Gaffney is urging the city to proceed with “eminent domain” to acquire the property at “a fair market price.” Gaffney said that the land is in a prime location fronting the beach and across the street from Convention Hall.
He suggested that the area would be useful as a parking location or “improvements to the retail areas surrounding this site.” Calling the site an “eyesore,” Gaffney urged action in time for this tourist season.
To contact Vince Conti, email vconti@cmcherald.com.