Tax Rate Up

Tax rate up slightly as property values climb in Wildwood

By TRUDI GILFILLIAN Staff Writer, (609) 463-6716
Published: Thursday, September 7, 2006
Press of Atlantic City

WILDWOOD — The public had little to say during Wednesday's public hearing on the city's 2006 budget.

Of the 20 or so residents who attended the special meeting in City Hall, only Ernesto Salvatico spoke.

Salvatico said he is concerned about the taxes and used his own property on Bennett Avenue as an example. The property's value, he said, had gone up several hundred percent since the city's recent revaluation.

His tax bill was also up, Salvatico said, to almost $6,000.

“It's insane,” Salvatico said.

Mayor Ernie Troiano Jr. said he understood Salvatico's concern, but he added the city could not control property values.

Salvatico warned that high taxes will mean some people will not be able to afford to pay this year's tax bill, which will result in higher tax bills for everyone in the future to make up the difference.

“We're not immune from the tax increase ourselves,” Troiano said of himself and his fellow commissioners.

The city's 2006 spending plan totals $24.8 million, up slightly over the 2005 budget of $24.7 million.

The budget is supported by $14.3 million in local property taxes, $1.9 million in surplus funds, and $8.5 million in revenues. It also comes with a tax increase of 1.5 cents.

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

Initially, the tax increase was expected to be slightly higher, but Troiano has said the city worked hard to pare down the figure.

The overall tax rate, including county and school taxes, will equal $1.51 per $100 of assessed property valuation. The total tax rate in 2005 for the city was $1.42.
After the meeting, Commissioner Kathy Breuss said adoption of the budget was delayed until Monday, Sept. 11, because the city is awaiting $1.5 million in land-sale revenues from developer K.Hovnanian.

That money is part of the purchase price of the former back bay landfill which K.Hovnanian is expected to convert into a residential development of about 200 homes.

Once the city has the money in place, the budget can be adopted, Breuss said.

The city will reconvene the special meeting on the budget at 4 p.m. Sept. 11