CAPE MAY – Cape May City Council adopted a no tax increase budget for 2022 April 19. The general fund budget of $22.1 million increases spending over last year without asking for a hike in the tax rate. This is accomplished, in part, due to strong non-tax revenue streams, the institution of a new occupancy tax on transient rentals, and the steady rise in property values.
Cape May taxpayers find themselves in the enviable position of needing to support less than half of the municipal spending. The general fund budget for 2022 only relies on taxation for 48% of its revenue.
The overall city budget includes $7.3 million for the water and sewer utility, $3.1 million for the beach utility and $1.1 million for the city’s tourism utility. The utilities, all supported by user fees, help to reduce the burden on city taxpayers.
Cape May’s strong financial position allowed the city to use $3.5 million of its surplus as a means of reducing the need for increased taxation. The city’s surplus, as of Dec. 31, 2021, was a healthy $9.9 million.
Dennis Crowley, of the Taxpayers Association, used the public hearing on the budget to press the city to spend more on code enforcement. Council members agreed that code enforcement needed additional support, but felt the city had the wherewithal to accomplish that goal within the budget without amendment.
