Crest Introduces Budget with 6.6-Cent Tax Hike

WILDWOOD CREST — Property owners in this borough will be paying more local purpose taxes this year based on the 2010 budget introduced by Borough Commission on April 14.
The tax rate jumped 6.6 cents from 49.5 cents per $100 of assessed valuation in 2009 to 56.1 cents this year. A homeowner would therefore pay $561 per $100,000 of assessed value or $66 more than last year’s $495.
Of this year’s $21 million total budget, $12.8 million would be raised through taxes. Last year saw a $19.5 million budget with a tax levy of $11.4 million.
Municipal Clerk Kevin Yecco said despite the increases, the budget remains under both the state-mandated 4 percent tax levy cap and the 3.5 percent appropriations cap.
Why such an increase in the tax rate then?
“The governing body recognizes the situation that Wildwood Crest taxpayers are facing during these difficult economic times,” Yecco told the Herald. He noted, however, that the commissioners were faced with difficult challenges of their own in developing this budget.
He said, the governor reduced the borough’s state aid by 20 percent or approximately $100,000. In addition, the budget saw a significant hike in capital improvement expenditures of more than $288,000 as well as an increase in debt service payments of nearly $780,000 in principle and interest payments on capital improvement projects.
Yecco said that debt service accounts for over half of the budget increase over last year. He noted that the increase is related to the $10.5 million Seaview Avenue reconstruction project, which included related roadwork on side streets, outfall lines and storm sewer mains. The project is scheduled for completion this year, he said.
Despite having fewer employees than last year (99 compared to 106), the borough’s wages and salaries also increased by over $150,000. Yecco said the borough was going to rely more heavily on seasonal positions that won’t impact health and pension benefit costs going forward.
Other operating expenses also jumped by nearly $200,000 from $8.5 million last year to $8.7 million in 2010. Included in the operating expenses was a nearly 20 percent increase in employee health insurance costs, Yecco said.
“That’s despite our having most of our employees (except those in the policemen’s union and some dispatchers) already contributing between 5-10 percent to the cost of their healthcare plans,” Yecco added. “The commissioners have been proactive in securing concessions from borough employees.”
Yecco pointed out that the Crest has a relatively small workforce compared to its neighboring communities in Wildwood and North Wildwood. He counted the following full-time employees: 32 in public works (including trash pickup), 21 in police, 11 in administration, nine in rescue and five in recreation.
With such a small workforce, Yecco said not much else could be done in reducing its size without a reduction in services to the community.
Employees are learning to do many jobs within their department, Yecco said. He noted that, “multi-tasking has become the rule for employees throughout all the borough’s operations.”
So, what else can be done?
“Nothing is off the table in the budget process,” Yecco said.
Yecco said that the commissioners were considering a wage freeze on employee salaries for 2011.
When asked if the borough had considered privatizing its trash collection services like Wildwood is in the process of doing, Yecco said that was considered but wouldn’t yield the substantial savings that it is in the neighboring community because the Crest’s trash collection staff of eight and their salaries are already reasonable low.
He added, however, that because trash collection employees receive health and retirement benefits from the borough and those costs are rising, “another look at that possibility is coming.”
A public hearing on the budget has been scheduled for 9:30 a.m. on May 12 in Borough Hall at 6601 Pacific Ave.
In the meantime, Yecco said that taxpayers wishing to discuss the budget prior to the public hearing are welcome to contact his office to schedule appointments with himself or members of Borough Commission. His phone number is (609) 522-5176 Ext. 110.