Sale of Wildwood Liquor LIcennses Too Late to Meet Mayor’s Budget Promise

WILDWOOD — City Commission reconvened Monday in order to adopt its 2007 budget with a 1.9-cent local tax increase over the previous year’s figure.
The city had banked on supporting its $24.1 million spending plan with the sale of at least two hotel/motel liquor licenses, at a price of $250,000 each.
After two failed at-tempts, Mayor Ernie Troiano Jr., said that the city had negotiated the sale of two licenses. However, he said, the state wanted the money in hand.
“Needless to say, I’m more than disap-pointed,” said Troiano.
However, Commissioner Gary DeMarzo said that he hasn’t seen a signed contract for either license.
“We’re still in active negotiation,” he told the Herald.
The licenses coupled with about $100,000 short in ambulance fees, DeMarzo said leaves about a $600,000 hole to fill.
The local tax rate in 2006 was 81.2 cents per $100 of assessed value, while the total tax rate, including county and school taxes, was $1.51. That would mean the local rate would move to 83.1 cents.
The budget was introduced with a 1.5-cent tax decrease on April 25 and was delayed until September as the licenses were twice put up for bid. Under that original plan, with the tax de-crease, the local tax rate would fall to 79.7 cents for every $100 of as-sessed value, compared to 81.2 cents in 2006. The total tax levy, or the amount to be raised by municipal taxes, is $14.8 million.
The budget had to be adopted by Sept. 18 in order to include new properties on its 2007 tax rolls. In order to make deadline, City Clerk Chris Wood physically drove to Trenton with the city’s budget.
Instead of funding this year’s budget, Troiano said money from the sales would go into next year’s surplus.
“It is always positive when you are generating revenue for next year’s fund balance,” DeMarzo noted.
Troiano had said during a Sept. 12 meeting he wasn’t ready to give up until the last possible moment; 9 a.m. Monday.
“We got them both sold and the state wouldn’t accept the con-tract of the sale,” he said. “They [the state] wanted the money in hand.”
Troiano said several developers have reportedly expressed interest in the licenses, but were slow with bidding be-cause they are awaiting word from the state that high-rise hotels planned for this community will be given the green light to start construction.