SOMERS POINT — City Council introduced its 2024 budget March 28, calling for a 1.47-cent increase in the municipal tax rate to $1.1237 per $100 of assessed value.
That equates to almost $15 more on each $100,000 of assessed value, or about $30 on a $200,000 home.
“There is much, much better news this year than there was last year. The financial position has improved immensely,” auditor Leon Costello said, noting the city is well within both spending caps.
The $19,381,816 spending plan, down $779,754 from 2023, increases the tax levy by $91,871 to $12,801,124.
State aid increased $55,273 to $1,079,502, while state and federal grants are budgeted at $525,583, down from the $2 million plus received last year. That latter number is likely to increase throughout the year as the city is awarded various grants.
Municipal salaries and wages have dropped $113,183 to $6,964,188, while other expenses rose $217,767 to $5,920,312.
The city increased its capital budget, not including grants, by $23,760 to $158,000. Debt service also increased, by $321,000 to $2,325,900.
The city has $3,662,790 in surplus funds, up $841,401 to $3,662,790 and will use $2.8 million in the budget, leaving $862,790, up $741,401.
Somers Point had a whopping 99.12 percent tax collection rate in 2023 and is anticipating 98.4 percent this year. The city uses 97 percent to fund its budget, so anything collected in excess goes into the surplus account.
Meanwhile, the total assessed value of taxable properties fell $7,226,500 to $1,139,176,000.
The city is $144,496 below the spending cap and $761,095 below the tax levy cap.
Last year, the city increased the tax rate 8.36 cents to $1.11 per $100 of assessed value. The increase amounted to $83 on every $100,000, or about $166 on a $200,000 home.
The municipal tax rate has increased nearly 30 cents, or 36 percent, since 2014, when it was 83 cents per $100.
A second reading and public hearing of the budget is scheduled for City Council’s meeting at 7 p.m. April 25.
– By CRAIG D. SCHENCK/Sentinel staff
