SOMERS POINT — City Council introduced its 2025 spending plan Feb. 27, calling for a tax rate increase of 1.98 cents on a budget of just more than $21 million.
Under the plan, the tax rate would increase to $1.14 per $100, or $1,140 for each $100,000 of assessed value. The municipal tax on a $300,000 home would be $3,420.
The tax levy would increase $321,273 to $13,122,397, but the city would be $458,976 below the 2 percent levy cap.
The city also would use $3.415 million of its available surplus, keeping $1.22 million in reserve — an increase of $329,680 over 2024.
“Considering the increases in our fixed costs — which are costs beyond the city’s control such as health benefits, pensions, contractual salaries and general liability insurance — we feel we have done our best to be conservative throughout this budget process,” Chief Financial Officer Shana Kestrel said.
Helping the tax situation was an $8 million increase in the city’s ratable base to $1.147 billion, an increase of .7 percent.
“We anticipate that number to grow as we continue with new development,” she said.
On the flip side, state aid fell more than $100,000 to $978,628, after the two-year Municipal Relief Program ended in 2024 and state and federal grant funding fell $722,505 to $1.05 million. However, grant funding is subject to change when others are secured throughout the year.
Kestrel also said it’s important to look ahead.
“Although our investments did well last year, interest rates have begun to go down and we may not see as good of results in 2025,” she said, noting Shore Medical Center provided the city a gift of $100,000 in addition to the mandatory bed tax but “there is no guarantee we will receive these funds next year and we need to plan accordingly.”
On the expense side, worker salaries and wages are up $222,760 to $7.16 million, as are other expenses, up $592,950 to $6.53 million.
The city’s tax rate has increased 31 cents, or 37 percent, since 2014 when it was 83 cents per $100. That includes an 8.36-cent increase to $1.11 in 2023.
A public hearing is scheduled for March 27.
– By CRAIG D. SCHENCK/Sentinel staff
