OCEAN CITY – City Council unanimously endorsed a $78.78-million budget for 2018 March 22, one which increased the local tax rate by a little over 2 percent, in the first of two required votes.
The public has the chance to weigh in before the final vote at the April 26 City Council meeting, set for 7 p.m. at City Hall, 861 Asbury Ave.
The budget includes a municipal tax rate of 45.89 cents per $100 of assessed value, up slightly less than one cent compared to the 2017 budget.
If approved April 26, that would mean the owner of a house assessed at $500,000 would pay $2,294.50 to support the municipal operations, in addition to school and county taxes. That’s about $50 more than last year.
The budget calls for just over $1.8 million more to be raised by taxation this year compared to 2017.
Frank Donato, Ocean City’s chief financial officer, called the tax levy the best way to compare budgets. He cited three reasons for the increase in this year’s budget proposal.
“What the tax levy is doing is a true reflection of the difference in spending from one year to the next. We’re up $1.8 million,” he said. “We know that the primary factors are increasing the capital improvement fund for down payment on ordinances this year, we have increased debt service from capital improvements that we’ve been doing for the past several years. We know that we have a pension obligation that’s going up about $300,000.”
The budget falls well below the state’s caps on both spending increases and on increases to the tax levy, Donato said.
To contact Bill Barlow, email bbarlow@cmcherald.com.
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