Citizens complain about hike, citing ratable increase, new projects in city
SOMERS POINT — Somers Point City Council adopted its $21,775,398 spending plan April 23, calling for a 3.6-cent increase in the local tax rate and $605,837 hike in the tax levy.
The tax rate rises to $1.18 per $100 of assessed value and the tax levy to $13.728 million. The owner of a $300,000 home would pay $3,540 in municipal taxes.
The budget includes $7.363 million in salaries and wages, the city’s largest expense. Coupled with Social Security, pensions and group health insurance, the total direct employee cost is $12.619 million.
Funding includes the use of $3.5 million in fund balance, $2.263 million in local revenues, $978,628 in state aid, $884,036 in grants and $422,000 in delinquent taxes.
Resident John Helbig asked how much of the revenue generated is used for fixed costs and how much for discretionary spending.
“My concern is this: we added $15 million in ratables last year and we still have a tax increase,” he said. “So it seems to me that we have to start looking for innovative ways to bring more revenue into the community, or we’re going to be facing this every year. That’s the only way I can see us beating down the tax increase every year and possibly reducing our taxes at some point.”
Longtime city resident Pat Pierson agreed with Helbig, suggesting the city move its municipal court — which includes costs for a judge, prosecutor, public defender and other fees — to Atlantic County’s central court.
“This court in this city has to go to Mays Landing. Send this court to Mays Landing and start looking for other things to lower this budget,” she said.
Pierson mentioned new construction projects — such as the housing complex at Greate Bay County Club, another at Bay and Maryland avenues, the Somers Point Paddle Club and the ALDI market — wondering why the increased ratables did not offset the tax increase.
“Look at all the business that has come into this town. Look at all the houses. Look at all the condos. And we still have to pay 3.5 cents. This is misguided or something is wrong,” Pierson said. “You’ve got to start tomorrow lowering this tax because people can’t afford it. You’re chasing people out of town.”
Councilwoman Janice Johnston acknowledged the new development but said the city cannot start taxing the projects until after a certificate of occupancy is issued.
“So even though you’re seeing a lot, until they get the CO for the Paddle Club, for the homes, for the Great Bay, for everything that’s going on, we don’t actually get to collect the taxes until they’re in there,” she said, noting that could take upwards of six months before everything gets done to actually collect the taxes.
City solicitor Tom Smith said the added assessments would get put on the books following the Sept. 13 deadline and then the fourth-quarter tax bill goes out with a separate bill for the added assessments.
Council President Kirk Gerety attributed the tax rate increase mainly to a $400,000 payment the city had to make to leave the state health benefits plan.
He said projections for next year put the total budget at $21,490,010, a decrease of $285,388, which he said equates to a 2.5-cent reduction in the tax rate.
“We’re in a situation of where we’re kind of biting the bullet because of the circumstances,” Gerety said. “But all those things that you’ve talked about, the additional revenue coming in, all of that should enter into play next year. I feel very confident with this budget that we are going to have a very good year next year and we get through this.”
– By CRAIG D. SCHENCK/Sentinel staff
