Ocean City Budget Nearly $80M, Mayor Presents Spending Plan

OCEAN CITY – Mayor Jay Gillian proposed a $79.98-million budget for 2018 to City Council at its Feb. 22 meeting, which would increase spending by about $1 million over last year.  
As proposed, the budget would increase the local purpose tax rate by close to a penny, setting a rate of 45.89 cents per $100 of assessed value, compared to 44.9 cents last year.
If council approves the budget as proposed, that would mean the owner of a house assessed at $500,000 would owe $2,295 in municipal taxes this year, about $50 more than in 2017, plus school and county taxes.
This was the first public glimpse of the completed budget proposal. The administration plans to offer a more detailed presentation at the March 8 City Council meeting, set for 7 p.m. in the third floor of City Hall, 861 Asbury Ave., to include information on revenues and expenses.
In Ocean City’s form of government, the administration proposes a budget, and it is up to the seven-member City Council to accept it or make changes.
The first vote on the budget is expected March 22, with a public hearing and final vote tentatively set for April 26.
The city’s extensive capital projects had an impact on this year’s numbers, as did pension fund contributions.
According to information from city officials, about $750,000 of the increase is due to debt service and capital accounts. The city cites state-mandated increases to its pension fund contributions for another $300,000.
A climb in property values helped blunt some of the increase. According to a fact sheet prepared by the administration, Ocean City added about $135 million to its ratable base in 2017, bringing the total assessed value of the town to $11.69 billion, which shaved about half a cent off the tax rate.
Salaries and wages are down by a fraction of a percentage point compared to 2017. The budgeted amount for that line item is $29.9 million, down $212,700 compared to 2017.
Gillian presented his annual State of the City address, emphasizing the capital projects undertaken over his eight years in office and praising City Council and the city’s employees, and the community at large.
“The great news is that the state of the city is strong,” he said. “And although it is strong, we still have challenges. I know it can be frustrating trying to negotiate all the projects in all four wards.”
In recent years, the city has undertaken a substantial amount of road work, which the administration says was far overdue. The city has also tackled expensive projects to dredge silted back-bay lagoons and to reconstruct most of its boardwalk.
“I’m happy to report that a seven-year project to completely rebuild the boardwalk between Fifth Street and 12th Street will be finished two years early and under budget,” Gillian said.
“This stretch at the heart of the boardwalk was constructed after a devastating 1927 fire. The new boardwalk will serve generations to come,” he added.
Gillian praised volunteers throughout the city who get involved in churches and community groups, boards and commissions, and those who attend council meetings.
He included those who voice complaints and singled out some young people who raised issues with city actions, including one who was recently honored for attaining the rank of Eagle Scout, Andrew Leonetti.
“But when I think of Andrew, I remember a young man who came to city council. He wasn’t happy with a proposed ordinance, but he spoke his mind respectfully and passionately…and ultimately he helped reshape the new law to one that worked much better for everybody.”
Years ago, Leonetti had raised issues with a proposed ordinance to limit musicians who were playing for tips on the boardwalk.
Gillian said his input and those of others on various issues was valuable and said he and council listen when the public speaks.
Gillian is seeking a third term as mayor in the May election. He’s likely to face former city council president John Flood.
Potential candidates have until March 5 to file petitions with the city clerk for a spot on the ballot for the non-partisan election, at which voters will also cast ballots for three at-large City Council seats.
“As mayor, I will make sure our city is clean, safe and family-friendly and will commit the resources to make that happen,” Gillian said as part of his prepared statement. He promised to do so in the most cost-effective manner possible.
To contact Bill Barlow, email bbarlow@cmcherald.com.