OCEAN CITY — Revenues and spending in Mayor Jay Gillian’s proposed 2023 municipal budget are up more than 9 percent and the local tax rate would climb just under 3.7 percent — or 1.77 cents per $100 — if approved by Ocean City Council.
An increase in ratables has offset the tax rate. The resort now boasts $12.56 billion in assessed valuation, up from $12.29 billion in 2022.
The mayor has proposed a budget with revenues and spending of $98,891.959, an increase of $8.363 million, or 9.24 percent, from the prior year’s budget.
The proposed local purpose tax levy would climb just under $3.5 million, or 5.92 percent, to $65,380,553.
Because ratables (assessed valuation) in the resort rose $262 million, the tax rate would rise only to 49.67 cents per $100 from 47.9 cents if the budget were approved.
Chief Financial Officer Frank Donato told City Council on Thursday that the increase in ratables kept the tax rate from increasing an extra penny.
To help keep the taxes down, the proposed budget includes using $5.7 million, or just more than half, of the fund balance, leaving just shy of $5.4 million. Last year the city used $5.4 million from the fund balance, so this would be an increase of $300,000.
The biggest change in expenditures year to year is a 9.37 percent increase in salaries and wages, or a $3.068 million hike to $35,821,383, and an 11.8 percent increase in debt service, or $2.015 million, to $19,084,626.
The proposed budget amount to be raised by taxes is nearly $2.7 million below the cap allowed by state law, meaning the city could increase its tax levy by that much.
The budget anticipates a jump in parking meter revenue of about a half-million to $3.975 million in 2023. The city budgeted $3.2 million for 2022 but realized almost $3.5 million.
The city also expects a huge jump in beach fees, going from just under $4 million realized in 2022 to $5.2 million in 2023.
Expenses
An overview of some of the expenses in the 2023 spending plan follows by department.
Department of Police:
— $9,364,968 salaries (up $300,000 from what was spent in 2022),
— Other expenses, $365,800, vehicles at $260,000.
— Information technology, $307,000 salaries, $384,400 other expenses.
Department of Fire:
— Fire protection salaries, $7.739 million (up $480,00 from 2022 spending), plus $283,000 in other expenses;
— Lifeguard division salaries $1.825 million (up $420,000 from 2022 spending) plus $168,000 expenses;
— Rescue Service salaries $234,000 and $108,150 expenses.
Department of Administration:
— the mayor’s alary remains unchanged at $20,600 for 2023.
— City Administrator, salaries are at $384,000 with $229,100 for expenses;
— Human Resources, salaries $606,000 with $162,000 for expenses;
— Purchasing, $182,000.
In Department of Community Services:
— Public Relations salaries of $969,000 with expenses of $585,650;
— Aquatic and Fitness Center salaries of $1.17 million and expenses of $88,100;
— Recreation and Leisure Programs has $570,000 salaries;
— Music Pier Operations, $635,000 salaries and $41,500 expenses.
Department of Operations and Engineering:
— Administration, $746,000 salaries
— Engineering and project management, $446,000 salaries, $152,500 expenses;
— Municipal Code, Licensing, Engineering, $728,000 salaries, $77,000 expenses;
— Facility Maintenance, $1.008 million in salaries, $532,700 expenses;
— Environmental Operations, $1.236 million salaries;
— Trash and recycling, $3.789 million.
— Field operations, $1.652 million salaries, $133,100 expenses;
— Fleet maintenance, $411,000 salaries, $332,700 expenses.
Department of Law:
— Legal Division, $208,000 salaries, $228,000 expenses;
— Public defender, $44,800 expenses;
Statutory Offices:
— City Clerk, $235,000 salaries, $47,095 expenses;
— City Council, $73,600 salaries, $17,300 expenses;
— Municipal Court, $540,000 salaries, $33800 expenses.
Department of Financial Management:
— Accounting Division, $540,000 salaries;
— Office of Parking Regulation, $290,000 salaries, $150,000 other expenses;
— Property Assessment Division, $344,000 salaries, $123,500 expenses;
— Beach Fee Regulation Division, $440,000 salaries, $80,800 expenses;
— Tax Collection Division, $238,000 salaries;
— Revenue Collection, $472,000 salaries, $203,200 expenses.
Insurance:
— General liability, $659,717 ($588,513 appropriated for 2022)
— Worker’s comp, $1.745 million ($1.618 million in 2022)
— Health insurance, $7.31 million (same as appropriated in 2022).
A few other budget expenses for 2023 versus (2022):
— Contribution to public employees retirement, $2.064 million ($1.843 million);
— Contribution to police, firemen’s pension fund, $4.77 million ($4.19 million;
— Lifeguard pension, $300,000 ($240,000).
— Maintenance of library, $6.093 million ($5.079 million)
— Electricity, $720,000 ($664,000)
— Street lighting, $450,000 ($420,000)
— Telephone, $325,500 (even)
— Water, $984,000 ($958,000)
— Fuel oil, $180,000 ($145,000)
— Gasoline, $420,000 ($308,000)
By DAVID NAHAN/Sentinel staff