Gillian touts investment, ongoing improvements paying off for the resort
By ERIC AVEDISSIAN/Sentinel staff
OCEAN CITY – A robust public improvements program, a clean audit, and growing real estate values were all points Ocean City’s municipal government touted as successes, according to Mayor Jay Gillian’s annual State of the City Address.
Gillian’s comments, delivered before council on Feb. 27, focused on several successes over the past year and outlined current initiatives.
“You have all made an investment in Ocean City. Think of this as a shareholder report,” Gillian said. “You should be happy to know that the value of your investment continues to grow. The city is making major improvements to every part of Ocean City – from beach to bay – tip to tip. At the same time, we continue to deliver responsible budgets year after year.”
Some past improvements include:
• The combined value of Ocean City real estate, the ratable base, increased by more than $100 million for the sixth year in a row, making Ocean City the fourth most valuable city in New Jersey.
• The city ended 2019 with a record fund balance at just more than $8 million.
• The city maintained its AA bond rating, with Standard and Poors noting a positive outlook for Ocean City.
• The city received another clean audit this year, with Gillian adding Ocean City had not had a single finding in the 10 years of his administration.
• The city negotiated four-year labor agreements with all major unions this year.
• Ocean City achieved a Class 4 in the National Flood Insurance Program’s Community Rating System, saving the city’s 16,729 policyholders $3.2 million collectively – about $192 per participating home – in flood insurance.
Gillian presented draft municipal budget for 2020. The $82 million budget represents a 3 percent or $2.4 million increase over this fiscal year. The tax rate is 46 cents per $1,000 of assessed value, meaning a homeowner with a home valued at $500,000 will pay an additional $25 more in local taxes next fiscal year.
He said the completion of three major neighborhood drainage projects including 10 pumping stations “changed the quality of life for residents in flood-prone areas.”
The projects included Marion Park, between 26th and 34th Streets and West and Bay Avenues, and the north end.
Crumbling drainage pipes were replaced, new curbing installed and streets were elevated.
Pump stations, designed to drain water from surrounding streets, were installed at 28th Street at the Ocean City Municipal Airport, Bay Avenue and the airport, Bayland Avenue, 30th Street and Haven Avenue, and Second, Fifth and Sixth streets along Bay Avenue.
Gillian said the city has “dedicated teams” who monitor the stations, track flooding patterns and gauge the effectiveness of the city’s flood remediation efforts.
“Ocean City is taking a lead in finding solutions related to coastal flooding on barrier islands. The elevation of homes and infrastructure, installation of pumping stations, replacement of bulkheads and barriers, creation of living shorelines, purchase of open space and various other ideas are all part of our overall flood prevention strategy,” Gillian said.
The city will also proceed with an “ambitious” road improvement program and coordinate with utility companies for major upgrades to local services, Gillian said.
The Army Corps of Engineers will return this spring to pump 1.4 million cubic yards of new sand onto the north end beaches, and “shore up an uninterrupted line of dunes protecting properties,” according to Gillian.
He said the city plans to extend the Boardwalk decking at street ends of Ninth Street, 10th Street and 11th Street to allow for restroom facilities.
The city is also continuing its gull abatement program which uses falcons, hawks and an owl to keep gulls from stealing food on the Boardwalk, Gillian said.
Gillian noted the bayside dredging program for this year is nearly complete, with all lagoons at 14 Mean Low Water (MLW). He added the city has a plan for an experimental “sediment trap” that will prevent frequent re-silting of Snug Harbor.
The city continues to negotiate for the acquisition of the former car dealership lot adjacent to the Ocean City Community Center. Harry and Jerry Klause of Klause Enterprises own the property located between 16th and 17th streets and Haven and Simpson avenues.
The city almost acquired the land in 2018 for $9 million, but Fairness In Taxes (FIT), a local taxpayer advocacy group, questioned the purchase price.
FIT claimed the $9 million sales price was too high, and started a petition drive to halt the sale and put the property sale to a public vote. The petition drive proved ultimately successful, and after the signatures were verified, the city repealed the property’s sale, ending the deal with Klause Enterprises.
Later at the Feb. 27 meeting, council approved a $6 million bond ordnance for the acquisition of the property based on new appraisals.
Gillian thanked the city council and city employees for their efforts.
“I’m looking forward to another productive year in Ocean City,” Gillian said. “I want to thank city council for their continued cooperation, hard work and dedication in tackling an aggressive agenda on behalf of all citizens, guests and taxpayers. As mayor, I will make sure our city is clean, safe and family-friendly and will commit the resources to make that happen.”
