The public got its first glimpse of Mayor Jay Gillian’s proposed budget for 2014 on Thursday.
Despite a plan that calls for a spending increase of just 1.01 percent, property owners are looking at a proposed 4.09 percent increase on the tax rate.
The bottom line for taxpayers: an increase of 1.579 cents for every $100 of assessed value. That means taxpayers will pay an extra $15.79 in taxes for every $100,000 worth of property. The owner of a (not-quite-median) $500,000 home would see an increase of $78.95 in municipal taxes (not including school taxes or county taxes).
__________
See the 2014 Ocean City draft budget summary.
__________
For the third year in a row, Gillian’s administration delivered a draft budget to City Council that holds budget increases to about 1 percent or under. But two factors work against taxpayers:
- The city has less property value to tax: The ratable base fell by $133 million or 1.17 percent (through reassessments of about 4,000 homes and through tax appeals).
- Revenue is expected to be about $500,000 less (the city anticipates using less of its surplus and having fewer delinquent taxes to collect).
The tax levy to Ocean City taxpayers increases by $1,261,729.60 — on average property owners will pay an extra 2.89 percent. Taxpayers whose homes were reassessed may pay less overall in taxes. Owners whose homes were not reassessed will pay the extra 4.09 percent.
The introduction of the budget is the first step in a process that leads to final adoption in the spring.
City Council will hold public workshops on the budget 6 p.m. Feb. 19 and 20 at the Ocean City Free Public Library.
With a multi-year “compliance plan” to reassess homes now complete, the city’s ratable base and tax rate should begin to stabilize next year.
Read narrative on next year’s budget in Ocean City Mayor Jay Gillian’s ‘State of the City’ address.
