CAPE MAY — If it works, keep doing it.
Cape May City Council introduced its 2025 budget April 15 with no increase in the local tax rate for the sixth straight year.
The $27,985,635 spending plan requires a tax levy of $10,932,100, which is $750,505 below the state cap on increases. The municipal tax rate will remain at 36.1 cents per $100 of assessed value.
Overall, the budget is up just over $1 million from the previous year. In 2024, the general budget was $26,906,960, Water and Sewer Utility $7,627,500, Beach Utility $4,236,572 and Tourism Utility $1,305,000. Added appropriations of $7 million and emergency appropriations of $700,000 increase the total appropriations to $34,610,184.
The Water and Sewer Utility budget is up $115,000 to $7,742,500, the Beach Utility budget is up $94,000 to $4,332,850 and the Tourism Utility budget up $295,000 to $1.6 million.
Auditor Leon Costello said the budget is compliant with both the levy cap and appropriations cap the state imposes.
“We are not exceeding anything; we have room left,” Costello said.
Appropriations are $389,127 below the cap.
Mayor Zack Mullock thanked Costello, City Manager Paul Dietrich and Chief Financial Officer Kevin Hanie for their work on the budget.
Costello said the budget is “allowing for capital projects, more than you’ve been doing. That was one of the commitments on extending the room tax.”
Councilman Shane Meier asked Costello if anything was changing in the state that could be considered in the future.
“You lost one piece of state aid, like every town did,” Costello said. “The state appears to be broke — things aren’t being funded — so I don’t expect any good news out of the state this year.”
He said the outcome of the election for governor, lieutenant governor and Assembly may affect next year’s budget.
“State health benefits are a big issue, and the percentages aren’t looking good for next year either,” Costello said. “Even though you’re not in it, it’s causing aggravation in towns. This year is your first out of it.”
Mullock said the city got out of state health benefits plan for exactly that reason, because the past four years have seen significant increases that would make up a large portion of the budget.
The budget hearing is scheduled for 5 p.m. May 20.
By CRAIG D. SCHENCK and RACHEL SHUBIN/Cape May Star and Wave
