Housing Authority Exec Updates City; Mayor Strives for Zero Tax Hike Budget

CAPE MAY – Cape May City Council held its monthly work session Feb. 2.
Cape May Housing Authority Executive Director Carol Hackenberg made a presentation to council and engaged in a discussion of the authority’s issues.
The authority operates three properties which offer significantly discounted rents for low-income residents. Utility costs as well as water and sewer expense at those properties are covered by subsidy.
The Lafayette and Osborne courts properties have smaller units, often used by singles or seniors, with accommodations for larger families at Broad Street Court.
Tenant revenue and federal Department of Housing and Urban Development (HUD) public housing authority operating grants constitute the bulk of funding for the authority. Fluctuations in the level of federal grant support pose one of the on-going challenges for the authority.
The authority is organized under state law and proscribed by the rules and regulations of HUD. The authority was created in 1964 by resolution of city council.
The authority has a seven-member board appointed largely by the city. It also includes a currently vacant board seat that is filled only by appointment from the governor. The authority manages 85 housing units.
City Budget
Following introduction of the City Manager Bruce MacLeod’s proposed 2016 budget Jan. 15, Mayor Edward Mahaney said he would present suggestions at the next work session on how to reduce the proposed seven-tenths of a cent increase in the tax levy to zero.
That entailed expense reductions or new revenue equaling $232,225.
Mahaney presented proposals to council with a focus on reductions in expenditures achieved through eliminating one proposed position in Civic Affairs and cutting the full-year budgeted health insurance benefits for new positions where those positions will not be filled until later in 2016.
Mahaney also proposed new revenue achieved largely through using a reserve to offset increases in debt service and more ambitiously budgeting parking meter revenue in light of experience in recent years.
Mahaney noted that he is “not pleased with the composition and magnitude of the proposed Capital Budget requests and their potential negative effect on our city’s taxpayers.” 
He went on to recommend changes to the capital budget including the use of a capital fund balance as the best way to meet the needs for “smaller capital items.” The mayor went on to suggest reductions in the size “and amenities” in proposed vehicle purchases among other proposals.
Mahaney’s suggested changes to the budget were well received by fellow council members with Shane Meier and Roger Furlin indicating that they too may be proposing some alterations prior to an actual budget vote.
Railroad Right of Way
Mahaney said that he has invited other towns along the railroad right of way to join Cape May in looking into the lack of rail service and the potential to gain approval from the state transportation agency to use the railroad for other purposes, such as extensions to the county bike path.
This was an issue debated at a recent work session of Middle Township Committee where a group of residents opposed a current plan for the township to use Atlantic City Electric right of way for the southern leg of the bike path.  Residents proposed getting permission to use the railroad land under lease to a developer who has failed to provide railroad service. 
Jonas’ Effects
Saying Cape May “fared better than some” from the effects of Winter Storm Jonas, Mahaney asked residents to get estimates of any damage into FEMA as soon as possible. 
Aggregate damage estimates will be important in determining what emergency funding may be available for post-storm cleanup. 
MacLeod joined the mayor in praising the work of city employees during the Jan. 22-24 storm.   
To contact Vince Conti, email vconti@cmcherald.com.