Financial Audit: Ocean City Is 'A Model of Consistency'

A required annual audit of Ocean City's finances by an independent agency found no significant deficiencies and made no formal recommendations for remediation.

Leon Costello of Ford-Scott & Associates, LLC, of Ocean City and Mays Landing, delivered a summary of his firm's audit at Thursday's public City Council meeting.

Costello called Ocean City "a model of consistency." He referred specifically to Ocean City's reserve fund balance, which has remained stable at a little more than $5 million through swings in the economy since 2007.

Costello said Ocean City's ability to maintain a consistent fund balance is indicative of a town that can anticipate economic conditions and manage its money responsibly.

"Ocean City is a very progressive, very forward-thinking town," Costello said.

He compared Ocean City to nearby towns that are "getting clobbered" by the results of successful tax appeals. Ocean City experienced the same decrease in its ratable base but was able to mitigate it with a decreased tax levy.

The audit sampled financial records, processes and procedures in all city departments.

Costello noted that Ocean City is responsible for keeping track of a "huge number of transactions" in operations such as municipal parking lots and beach tags.

Ocean City maintains a AA bond rating, Costello said, which is worth half a point on a borrowing interest rate. But he said he would like to see Ocean City upgraded to AAA.