West Cape May News

Trash-collection cost swells West Cape May budget
By RICHARD DEGENERStaff Writer, (609) 463-6711
Published: Saturday, February 18, 2006
Updated: Saturday, February 18, 2006

— Borough Commission has introduced a $1.7 million budget that carries a large tax increase, but most of the hike will pay for municipal trash collection.

Mayor Pam Kaithern said the budget carries a tax increase of 7.9 cents for each $100 of assessed valuation. This translates into an increase of $79 for the owner of a home assessed at $100,000.

But Kaithern also noted that 5 cents of that increase is to pay the $147,500 bill to collect trash, a service approved by voters last year that began in January. The trash removal account in the budget jumped from $2,500 in 2005 to $150,000 this year. Kaithern noted that the commission has shuffled money in recent years to prevent a tax increase, but with the cost of everything rising, that would not work this year.

“The increase is 2.9 cents without trash collection. We haven't had a tax increase in the last four years, but there comes a point where you can't keep the shell game going,” Kaithern said.

Court revenue has declined and the state took over issuing contractor licenses, another loss of incoming funds. The borough only has a few fees, such as mercantile licenses, and Kaithern said the prices must be reviewed. She noted mercantile licenses are only $25, which hardly pays for the paperwork let alone the physical inspections.

“We have no parking meters or beach tags,” said Kaithern, who oversees the Department of Revenue and Finance.

With few revenues, there is nothing to offset rising expenditures in the $1,706,424 budget. Debt service, partly for infrastructure improvements, is rising from $103,600 to $117,200. Kaithern notes much of that expense, however, is to pay off low-interest loans that are helping the town upgrade.

The state is contributing less to pension costs, up about $5,000 more this year, and this is expected to continue to rise in future years. Police service from neighboring Cape May is also costing more. It rose from $321,819 to $337,910. The recycling budget is going from $28,300 to $35,300, partly to add seasonal help.

The budget proposes using $360,000 of surplus, leaving $165,313 in borough coffers. The amount to be raised by taxes to support the budget is $1,033,010, up from $777,586.

The water and sewer budget was also introduced. It stands at $895,5430, up from $840,000 in 2005.