County Introduces $143.7M Budget

ED. NOTE: View the budget in its entirety at the following link: http://filetransfer.cmcherald.com/h_uploads/BudgetApp2011.pdf.
CREST HAVEN — A $2-billion plunge in county ratables, linked with the fifth year of declining revenue from real estate transfer fees will likely mean a county tax rate of 18 cents per $100 of assessed value. That means an average $180 per $100,000, although each municipality’s rate will differ because of its ratable base.
A public hearing is set for March 8 at 7 p.m.
At the Tue., Feb. 8 meeting, as many department heads and taxpayers listened, Freeholder Director Daniel Beyel delivered the annual budget message prior to introduction of the $143.7-million proposed spending plan compared to the adopted 2010 budget of $141.8 million. He said total operating expenses would be $73.1 million, up $2.7 million.
Salaries and Wages are trimmed $1.5 million to $44.8 million. The net effect of operating expenses and salaries and wages increases are about 1 percent.
The economies came at a loss of 70 full-time positions with an estimated annual saving of $3.5 million.
While eight of nine county government bargaining units made concessions that will save $1 million over the next three years. County officials have hope that the final bargaining unit will also agree to extend its contract to avoid the layoff of 30 to 35 employees. That extension, coupled with a wage freeze of higher salaried management employees, would save an additional $1.6 million over the next two years.
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The following Cape May County Budget 2011 Message was delivered by
Freeholder Director Daniel Beyel at the Tue., Feb. 8 meeting:
On behalf of the Cape May County Board of Chosen Freeholders – I’d like to offer this year’s message introducing the 2011 county budget.
This budget reflects two years of careful – comprehensive and continuing review of county operations to cope with these exceptionally difficult economic times.
Not only did we witness the fifth straight year of revenue loss from transfer fees at the County Clerk’s office – we had another sharp decline on our interest on investments. For the second straight year – we also had a staggering loss in our ratable base of almost $2 billion.
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 protracted depressed economy. But I believe Cape May County government is doing an outstanding job in reacting as well as being proactive to these unusual economic challenges.
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 protect the services that residents need and expect from county government – while keeping our budget affordable to the taxpayers of Cape May County.
For this year’s budget – 80 percent of county departments either reduced their operating expenses or kept them at a zero increase. Except for an additional $1.8 million in employee health insurance and $1.4 million for our pension payment – all other increases in operating expenses were minimal.
By expanding shared services – redirecting some county operations to the private sector – and maintaining a rigid attrition program – we have reduced the workforce 70 full-time positions with an estimated annual saving of $3.5 million.
Eight of our nine bargaining units have agreed to extend their labor agreements to reach a savings of close to a million dollars over the next three years. We’re hoping that the last union will also agree to extend their contract to avoid the layoff of 30 to 35 employees. This extension coupled with a wage freeze of higher salaried management employees would save an additional $1.6 million over the next two years.
The immediate impact of these savings kept our 2011 budget as well as our tax levy less than a 1.5 percent increase. The longer term effect will help enable the county to sufficiently stay within the state mandated 2 percent CAP.
At this point – I’d like to express the Board’s gratitude to everyone in county government for their efforts and productive role in developing this 2011 budget.
The specific overview breakdown of this year’s budget in rounded-off dollars is as follows:
1. The Total County Budget for the Year 2011 is $143.7 million compared to the adopted 2010 Budget of $141.8 million.
Total operating expenses are $73.1 million reflecting an increase of $2.7 million. Total Salaries and Wages are reduced $1.5 million to $44.8 million. The net effect of operating expenses and salaries and wages increases are about 1 percent.
2. The amount of money to be raised by property taxes to support the 2011 budget is $93.6 million compared to $92.4 million for the year 2010. The amount of revenue other than property tax used to support the budget is $50 million.
3. The budget uses approximately 50 percent of our surplus. Specifically – $12.1 million of the available $24.2 million.
4. The County equalized tax rate for 2011 will be 18 cents per $100 of assessed value. This is a .8 cent increase over 2010. 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 16 municipalities; an average taxpayer will pay $180 for $100,000 of property assessment.
5. The total amount of estimated ratables for the Year 2011 is $51.46 billion compared to $53.5 billion in the year 2010. This is a $1.9 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 modest 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 to begin the 2012 budget. As we move forward facing future economic uncertainties – we will stay the course in changing the face of county government with new ideas – innovations – and different methods in getting things accomplished. We will further cut the size of county government and aggressively pursue more shared services with our municipalities and neighboring counties. We will remain steadfast to our commitment in being an example of excellence in county government.
The 2011 Budget complies with the New Jersey “CAP” Law. Public Hearing on the Budget will be held on March 8, 2011 at 7:00 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 – this proposed budget will be accessible on the county website 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 and visitors 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.
Thank you.