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By NANETTE LoBIONDO GALLOWAY
MARGATE The Board of Commissioners Thursday, March 7 introduced a $40 million municipal budget for 2024 with a 3.7 cent tax rate increase. If approved as introduced, a homeowner with a house assessed at $500,000 will pay $255.52 more this year for municipal services. It will be the first time the city has had a substantial tax rate increase since 2016 when the increase was 1.3 cents.
The local purpose tax is $26,420,779, up 6.06% over last year. The municipal library tax, which is figured on a state funding formula based on the city's total assessed valuation is $2,258,172, up 16.52% over last year.
The city experienced a $97,990,500 or 2.49% increase in the total assessed valuation of the city. Total valuation of all city property topped $4.03 billion and the new average residential assessment is $580,600.
Salary and wages based on agreements approved last year for most of the city's bargaining units are up $728,000, and other expenses up $813,714. The city will negotiate with its laborers and clerical workers before their contract expires at the end of 2024.
The city will pay $2,154,775 in interest payments on $20,025,000 in debts, and $2,785,063 in interest on $12,975,000 in utility debts. The city will also fund $1,244,341 in school bond interest on $6.5 million in debts.
City Auditor Leon Costello of Ford-Scott Associates of Ocean City, who was on hand for the introduction of the budget, said the budget is well below spending caps allowed by state law.
You can spend more money if you want to, he said.
Increases are the result of an 8% increase in the cost of insurance, increased pension payments and more spending for capital improvements.
There are no cuts to services and no one time expenses or gimmicks, he said.
Chief Financial Officer Lisa McLaughlin said the city is putting more money in its operating budget to fund smaller capital improvement projects rather than issuing bonds, which require interest payments over the life of the bond. The city will also fund $720,500 for certain capital projects to save on interest payments.The city also plans to permanently finance outstanding bond anticipation notes before the end of the year.
Costello said the budget will undergo self-examination, meaning the NJ Division of Local Government Services Local Finance Board will not have to review it this year because budget projections comply with all statutory requirements.
A public hearing on the budget will be held 5 p.m. Thursday, April 4 at Historic City Hall, 1 S. Washington Ave.
Also at the meeting, the board heard a presentation from health insurance broker Sean Gormley of Brown & Brown, who said the city could save as much as $325,000 on the cost of health insurance premiums next year if it switched from the NJ State Health Benefits Plan to Horizon BCBS. The plan would provide equal to or better than coverage for city employees and no increases in employee co-pays, although Gormley could not guarantee that the cost of certain formulary brand drugs would not increase. Insurance companies reserve the right to change their formulary brand lists from year to year, he said.
The current cost of providing family health insurance for most city employees enrolled in the Direct 10 program, which carries a $10 co-pay for doctor visits, is $43,399. Most city employees are required pay between 24-35% of the cost of their premium plan based on their income.
Department heads had some concerns about how the change in provider would affect employees.
The city currently pays a $12,500 consulting fee to Brown & Brown, however, Gormley said if the city makes the switch to Horizon, he will forego that fee but still collect a commission from Horizon.
The city also introduced two ordinances, one raising the fees for water connections and the other raising liquor license fees.
The cost of a 1-inch meter will increase to $1,500, up from $800; 1.5-inch meter $1,700, up from $1,400; and 2-inch meter $1,900, up from $1,700.
Plenary retail consumption licenses will increase to $720 annually, up from $600; plenary retail distribution licenses will increase to $414, up from $345; and a club license will remain at $180.
The board also approved a $125,000 contract for the Margate Business Association for marketing, and planning and organizing public events.
Margate 2024 Budget Introduced
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