OCEAN CITY – City Council unanimously approved a $78.78-million budget for 2018 April 26, one which includes a tax rate increase.
The municipal tax rate is 45.89 cents per $100 of assessed value under the spending plan, up slightly less than one cent compared to the 2017 budget.
Thus, 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.
Ocean City’s finance officer Frank Donato cited city debt, pension obligations and the settlement of a lawsuit as reasons for the increase in this year’s budget.
City debt has been raised as an issue in the race for the mayor’s seat this year, in which challenger John Flood seeks to unseat incumbent Jay Gillian, seeking his third term.
While both men were at the recent City Council meeting, neither spoke about the budget.
Members of the city council said the debt was necessary to handle the extensive work needed around town, including street paving, drainage work, renovations to the boardwalk, and dredging in the back bays.
“Really, this is what people wanted,” said Councilman Keith Hartzell. The infrastructure had been ignored for many, many years. They wanted that infrastructure fixed.”
To contact Bill Barlow, email bbarlow@cmcherald.com.
