Self-funding to Boost City’s Tax Rate

NORTH WILDWOOD – According to Mayor Patrick Rosenello, taxpayers will see a 2.7-cent tax rate increase in 2019.
Announced during the Feb. 19 City Council meeting, Rosenello assured residents that the city remains “under the levy and spending cap,” yet an increase will take effect.
Rosenello explained the increase, saying the city is seeking to “self-fund” capital improvement projects instead of borrowing monies and paying interest.
According to Rosenello, the 2019 budget “will make provision” not to borrow for beach replenishment this year. Recent storms and nor’easters have made beach replenishment (sand back-passing, dredging, etc.) initiatives mandatory. As in 2018, sand will be hauled to the city’s beaches.
Rosenello added that council will “set a course” to self-fund all future projects over the next several years.
Council introduced the 2019 municipal budget after Rosenello’s statements. Upcoming hearings will be held on the budget.
The Herald contacted Chief Financial Officer Todd Burkey for an explanation of what the increase looks like.
Concurring with Rosenello, Burkey said Feb. 21, the majority of the increase is due to incorporating self-funding measures as well as general “costs” in operation.
The budget for 2019 is $31.8 million; therefore, taxpayers will see an increase of $1.3 million in the city’s budget.
According to Burkey, “Total appropriations were $10,328.62 less in 2018 than in 2017.”
When asked how much of the budget would be raised by taxes, Burkey said $19.5 million would be raised by taxes. Grants and other programs will probably fill the remaining portion.
In 2018, the municipal portion of the city’s tax rate was $.718 per $100 of assessed value. According to Burkey, the 2019 tax rate would be $.745 per $100 of assessed value, hence the increase.
In past meetings, residents questioned the city regarding beach replenishment. They said the ocean would naturally reclaim sand. However, Rosenello and council stood firm. They cited the need to protect private and public infrastructure and property.
Rosenello added that self-funding would also include sea-wall repair and future extension.
To contact Rachel Rogish, email rrogish@cmcherald.com.