OCEAN CITY — Ocean City Council quickly and unanimously approved the new municipal budget Thursday evening with no comment.
The second reading and public hearing on the budget were delayed from the June 7 meeting because the state had not finished reviewing it, according to Ocean City Chief Financial Officer Frank Donato.
He explained that every year the state reviews a third of the municipal budgets and had not finished its review in time for second reading and public hearing June 7. He said he just got confirmation this week that it was reviewed and approved.
Donato also said this is the same budget with the same impacts that Mayor Jay Gillian presented initially March 12 and that he went over in detail at the March 26 council meeting.
The newly approved municipal budget is $125.4 million with a tax levy of $76.88 million.
The tax rate will increase 1.38 cents per $100 of assessed valuation to 58.58 cents per $100. That is a tax increase of 2.41 percent, following three years in which the tax rate rose a total of 17 percent.
The city tax rate benefits from a $175 million increase in ratables year over year, growing to $13.125 billion in property value islandwide.
The biggest expense in the budget is salaries and wages, which amount to $40.688 million. Ocean City has paid fire and police departments. Salaries and wages for fire and rescue services, including for the lifeguard division that protects the city’s beaches and bathers, is $11.225 million. Salaries and wages for the police department are $10.8 million.
For taxpayers, they benefit from having paid firefighters and police protecting life and property, and also because having the paid departments reduces the cost for home insurance.
Employee group insurance in the city’s budget grew by just more than $1 million year to year.
City Council approved the introduction in April with minimal comment. There was no public comment at the June 11 budget hearing and no council member spoke before they all voted in favor.
– By DAVID NAHAN/Sentinel staff