State Steps In, Gives Wildwood 18-Cent Tax Rate Hike

WILDWOOD — The state Division of Local Government Services took control of setting Wildwood’s tax levy and accompanying tax rate Sept. 22 after City Commission failed to adopt a budget last week and tabled the 2009 spending plan at the recent Sept. 23 meeting.
The city’s 2009 tax levy, or amount to be raised by taxes, at $20,405,768. That means, a local-purpose tax rate of $1.11 per $100 of assessed valuation, a figure 18.2 cents higher than the 2008 rate of 92.8-cents.
Property owners will pay a total tax rate of $1.831 per $100 of assessed valuation. That rate includes the $1.11 local-purpose tax, a 51-cent school tax, 3.1-cent library tax, 1.1-cent open space tax and 16.8-cent county tax.
That figure is nearly the same as the amount that appeared when the city introduced $26.1 million budget and its accompanying 18.2-cent tax increase in May.
Susan Jacobucci, director of the Division of Local Government Services, told the city in the Sept. 10 letter that the budget should have been adopted April 28 and the city had to adopt a budget no later than Sept. 17.
She writes, “if the city of Wildwood fails to adopt a budget consistent with our approval according to the statutes, the director of local government services also has the authority pursuant to NJSA 40A: 4-17(b) to establish the amount to be raised by taxation and thereafter notify the Cape May County Board of Taxation of such amount.”
She also noted that state directives would personally penalizes Commissioners $25 each day for past the deadline that the budget isn’t passed after Oct. 9.
During last week’s budget meeting, Commissioner Bill Davenport voted in favor of the budget and its accompanying 18.2-cent tax increase. Commissioner Gary DeMarzo, who oversees revenue and finance, abstained on the vote, and Mayor Ernie Troiano Jr. voted no.
Troiano said that he was hoping to avoid the looming increase and told those in attendance that instead of forcing that tax hike on residents, he was “sitting on” a $3 million memorandum of understanding from someone willing to buy the city’s former back bay land-fill. The mayor did not name the buyer but said the sale would keep the tax-rate increase at 7 cents.
City Auditor Glenn Ortman said then he was doubtful the state would accept the city’s at-tempt to bridge the tax gap with the last minute sale.
At the recent Sept. 23 meeting DeMarzo asked if he could vote on the budget “under the doctrine of necessity.”
DeMarzo said he was restricted by a judge’s ruling that prohibits him from voting because of his ongoing leave of absence as a Wildwood police officer. However, he said that under the doctrine of necessity he could possibly cast his vote.
Davenport said he was wary of voting on the budget without looking into the doctrine more closely.
“I do want to do something here and now and then have a challenge on it later,” he said.
Troiano suggested the spending plan be tabled and said that the commission still has the opportunity to hold a special meeting to vote on the delayed budget.