Stone Harbor Introduces $16.4-Million Budget; Revaluation Boost Maintains ’17 Tax Rate

STONE HARBOR – This borough was able to introduce a 2018 budget with greater anticipated revenue from local taxes while maintaining the local tax rate at the same $0.245 rate as 2017.   
This was made possible in part by the results of the borough’s recent reevaluation of property values which added $363 million to the borough’s total assessed value.
Council President Karen Lane superficially pointed to the fact that the additional revenue from the increase valuation helped stabilize the local tax rate.
The current fund budget as introduced has $16,359,846 of appropriations for 2018. The Water and Sewer Utility budget adds another $4,192,629, an increase of $266,000 over 2017.
As introduced, the budget calls for $16.4 million in general appropriations with $11.85 million coming from local taxes and $4.5 million in anticipated other revenues.
Added revenue allowed flexibility in the budget for allocating $50,000 each for two funds to cover future costs for back bay dredging and beach replenishment.
Administrator Jill Gougher said plans call for increasing the annual amount to $100,000 for each purpose in 2019.
The absence of select grant funding categories, like the one-time 2017 $2.7-million flood mitigation grant, makes an aggregate comparison for 2017 and 2018 difficult.
A look through the detail in the budget shows that revenues, outside of grants, and expenses are largely in line with 2017.
Grants that may be realized for specific purposes in 2018 cannot be anticipated in the budget until they are awarded.
The Water and Sewer Utility benefits from an actual anticipated decrease in the fees owed to the county Municipal Utilities Authority. Unlike neighboring Middle Township which is contemplating a new rate structure for its sewer users due to increasing MUA charges, Stone Harbor’s 2018 budget projects MUA fees $100,000 less than in 2017.
The utility’s budget projects over $150,000 in additional revenue, mostly from sewer user fees. The operating surplus anticipated at the end of 2018 grows by $100,000 over what was realized in 2017.
The Capital Budget for 2018 calls for water and sewer infrastructure upgrades with $2.2 million in expected utility capital improvements.
Borough Chief Financial Officer James Craft announced that the total effective tax rate, which includes the county and other sources of taxation, will probably decrease from $0.555 to $0.538 per $100 of assessed value due to the increased valuation in the borough.
Council unanimously adopted the introduction of the budget, setting up a public presentation and hearing on March 6.
Since many homeowners in the borough are unable to attend council meetings held mid-week this time of year, Gougher also said that the same presentation would be given Feb. 17 at 10 a.m. in the Council meeting room.
Since that is a holiday weekend, Mayor Davies-Dunhour expressed the hope that some second homeowners might be in town and able to attend.
To contact Vince Conti, email vconti@cmcherald.com.