MARGATE – The Board of Commissioners Thursday, March 2 introduced its 2026 Municipal Budget with a 1.9-cents tax rate increase.
The increase will cost a property owner with an average assessment of $590,000 about $114 more a year.
A public hearing on the budget will be held 5 p.m. Thursday, May 7 at Historic City Hall, 1 S. Washington Ave. The budget could be revised before the public hearing.
According to Administrator Patrick Moran, the city experienced an 18% increase in the cost of health benefits, one of the city’s largest expenses. The budget, which is 2.9% higher than last year, maintains all municipal services.
“I will continue to look at everything and see if we can find additional savings before the public hearing and adoption in May,” Moran said.
Despite a 1.47% increase in the ratable base, the $60 million in added assessments was not enough to cover the cost of salary and wage increases approved through collecting bargaining agreements and capital improvement projects that “are necessary to preserve the overall well-being of our city,” Mayor Michael Collins said in the monthly newsletter published on April 1.
Moran said the caliber of employees working in Margate is “second to none,” especially first responders.
“Our goal remains to maintain a stable tax rate while continuing to provide the highest quality of life for our residents,” Collins said.
The Atlantic County Board of County Commissioners approved the county budget on April 1 with an overall 2-cents tax rate increase. However, Auditor Leon Costello advised the board and citizens that the actual decrease for Margate, if any, would be based on its equalized valuation. Most Margate properties are currently assessed at about 50% of true market value.
To keep taxes in check, the city will apply $5.5 million of its surplus, up $400,000 over last year’s amount, but will maintain a balance of $3 million.
“You are using more than you did last year…we need to make back all that money to be in the same position next year for next year’s budget,” Costello said.
Rebuilding surplus comes from belt-tightening during the budget year.
Costello, whose company is auditor in 53 South Jersey communities, said many other towns are having tax rate increases as high as 10 cents.
“We understand that any increase is meaningful, especially for those on fixed incomes and we take that responsibility seriously,” Collins said. “The key takeaway is that the City of Margate will continue to evaluate costs to keep tax rates stable while investing in our future.”
In other business, the board approved a $140,000 contribution to the Margate Business Association to put on many of the city’s community events, including Beachstock, Funfest by the Bay and Duck Derby, among others.
The board awarded two contracts for beach vending, which will generate $98,000 for WC Ice Cream, LLC to sell ice cream on the beach and $25,000 for WC to sell coffee products during the beach season, May 3 through Oct. 1.
The board also approved a $27,500 contract for James M. Rutala Associates, LLC of Linwood to provide a review of the city’s Master Plan.
Collins also said the city is in the process of upgrading the Ann Pancoast Dog Park. The Department of Public Works will be installing two water fountains, repairing the gazebo and installing new locks on the gates.
Police Chief Matthew Hankinson said the DPW would be installing additional lighting at the Decatur Avenue playground in hopes it will discourage teens from gathering there at night. Also, the Police Department will hold a bicycle auction on June 13. The department has collected approximately 30 lost or stolen bicycles that will be sold to the highest bidder at reasonable prices, he said.
Additionally, he announced that ParkMobile meters would be activated for the summer season starting May 22. The rate remains $1 per hour.
Copyright Fideri News Network 2026
