Local Tax Increase

Wildwood budget calls for 1.5-cent local tax increase
By TRUDI GILFILLIAN Staff Writer, (609) 463-6716
Press of Atlantic City
Published: Saturday, August 12, 2006

WILDWOOD — The city's 2006 budget, introduced this week, comes with a local tax increase of 1.5 cents, Mayor Ernie Troiano Jr. said Friday.

That means the local purpose tax rate, which supports the city's operations, would be 81.2 cents compared to 79.7 cents in 2005.

“We worked extremely hard to bring (any tax increase) down,” Troiano said. The city had estimated the municipal tax rate would increase 2.5 cents.

“We struggled with this budget once again,” Commissioner Kathy Breuss said.

The overall tax rate, including county and school taxes, would equal $1.51 per $100 of assessed property valuation. The total tax rate in 2005 for the city was $1.42.

Troiano said he would not take the blame for the bulk of the increase, which he said can be attributed to increases in the school tax and county taxes.
According to the budget, the total 2006 spending plan is $24.8 million, an increase of $73,093.26 over last year.

The budget is supported by $1.9 million in surplus funds, a $14.3 million tax levy and $8.5 million in revenues.

On the revenue side, the new budget anticipates receiving $1.56 million from land sales of city property compared to $3.3 million from 2005.

The city also received $171,000 from the Greater Wildwoods Tourism Improvement and Development Authority as part of the omnibus agreement for construction of the new Boardwalk convention center.

The city delayed adoption of the budget while it worked to retrieve some of the money it is owed for its support of the convention center project.

Breuss said the city is owed another $490,000, and it will continue to fight to get that money in future budgets.

Spending increases are anticipated in salaries and wages for departments including police, parks and sanitation.

The city also anticipates fuel costs will increase from $235,406 paid in 2005 to $340,000 for the year.

Breuss said the city has already spent the amount of money it allocated for fuel in 2006. She noted that, as of Monday, Public Works employees who previously took their work cars home with them will no longer be allowed to do so in an effort to save fuel costs.

Insurance and contributions to the police and firemen's retirement system are also expected to increase.

A public hearing on the budget is scheduled for 6:30 p.m. Sept. 6 in City Hall.

To e-mail Trudi Gilfillian at The Press:
TGilfillian@pressofac.com