Mayor Gillian Delivers State of City and a Lean Budget

Mayor Jay Gillian's administration delivered a draft budget on Thursday night (Feb. 9) that keeps spending almost flat and decreases the tax levy slightly.

Under the proposed budget, spending increases by just 0.35 percent over last year from $68,950,382 to $69,191,855.

Because the city is projecting an increase in local revenue, the city will have to collect less in taxes under the proposed budget. The tax levy falls by 0.49 percent from $43,373,538 to $43,160,426.

But while Ocean City taxpayers overall will pay less in taxes next year, who pays more and who pays less will depend on whose property assessments were changed. Through and reassessments to select areas, Ocean City's ratable base fell by 5.3 percent. The proposed tax rate climbs by 4.9 percent.

Council will meet for public budget workshops as they work toward approving a final budget by spring for a fiscal year that starts July 1.

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— See the draft budget
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The mayor's delivery of the budget to council members was accompanied by remarks that served as a State of the City address:

"Tonight I’ll present to you the Administration’s budget for the City of Ocean City for 2012.  As I do, I’ll take this opportunity to comment on the present State of the City, and what I would like to work on in partnership with the Council, our team members and the entire community in the coming year.

I’m going to begin the way I did last year by thanking City Council for your willingness to work together.  We’re not always going to agree on everything, nor should we.  But at the end of the day, I’m just as confident as ever that we make decisions that are based on facts, and what we feel in our hearts is best for the community.  That’s not always easy. This being an election year, we already know that we’ll be joined by at least one new Member of Council at mid-year, as Mr. Wagner has recently announced his decision.  Roy,  I have to take this opportunity to thank you for your long time service to the community.  I appreciate your willingness to work with us.  I have a great deal of respect for you as a person and as an elected official.  You do your homework, you reach your conclusions and you stick by your convictions.  I’m looking forward to working with you for these next five months and after that I’m going to miss you.  But I have a feeling you and Edwina will stay involved in our community, and that makes me happy.  Thank you so much for your service Mr. Wagner.

I’ve been asked several times in the past few months if I have a problem with Council looking at the Fire Department, and challenging us to consider ways to operate more efficiency.   Not only do I not have a problem with that, I welcome it. 

Make no mistake about this….I want to continue to provide the services our residents, our guests and our investors expect.  We all place a high priority on those services related to public safety, cleanliness and quality of life.  But if we can do things more efficiently in any area, we’ll make the needed changes.

Our staff has responded to challenges time and time again in the past, and they’ll continue to do that at a time when government at all levels needs to change.

There’s no question that the State of our City is sound and improving.  We continue to budget responsibly, as we have done in the past.

Obviously we’ve struggled with a national economy that’s been slow to recover.  Locally, we’ve seen promising signs with building permits up and real estate activity that is getting stronger both in terms of sales and rentals.

Our history tells us Ocean City has weathered previous economic downturns a little better than most other shore communities.  We’ve also begun our recoveries a little ahead of them.  I’m optimistic this will again be the case.

We should take a moment to reflect on why we’ve been successful.  Why people want to live here, visit here and invest here.  We can never rest on our laurels or be complacent about the future.  But the plain fact is people love it here for the same basic reasons that they always have: we’re safe; we’re clean; we’re fun; and we’re family oriented.  That’s a brand that never goes out of style.

Census data confirms that we’ve lost full time residents and families with children.  So let’s work together to change that.  That’s my charge to the Planning Board who is making great progress on their Master Plan Re-Exam.

What  can we do to make people want to live here on a year round basis?

We continue to all agree that our infrastructure has to be improved.  As great a place as this is, the condition of our roads, drainage systems, lagoons and bay front, our boardwalk and our downtown needs improvements and needs them now.  On tonight’s agenda we are asking for your support of an aggressive, but responsible, five year capital plan.  It’s been developed with input from all of you and addresses the most urgent concerns that I just mentioned.

Our capital improvement efforts are stepped up in direct response to public input that we all have heard.  In the last eighteen months, we’ve completed the tide flex projects that were pending when I took office.  We then contracted for an additional 3.1 million dollars of road and drainage improvements that have either been completed or are currently underway.  The capital plan that I am asking you to adopt tonight devotes another 2.7 million dollars to the road and drainage category and will allow us to improve some the worst conditions in the city, including parts of Merion Park.

With your support, 2012 will be the year we begin to reconstruct the boardwalk, after many years of band aid approaches.  We’re done doing studies and debating materials; it’s time to get at it.

We have an approach to lagoon dredging that can provide relief to some but not all of the waterfront areas with the worst problems.  We’re aggressively pursuing the required permits to make this happen beginning in June.  A number of issues are pending, but I’m optimistic we can get some dredging done.  We can accomplish more when a disposal facility on Route 52 becomes available in 2013.

What is an even bigger challenge is a practical long-term solution to this issue.  We’ll continue to work with other levels of government and our consultants toward an achievable plan.

Let me speak for a minute about our tourist development efforts. 

The Master Plan will speak to tourism as well, and a great deal of time and study has gone into our hotel-motel zone.  I appreciate the efforts of the volunteers on the planning board that have been reviewing this for nearly two years.  They have some excellent ideas about this area of our town, which has seen the least amount of redevelopment over the past 25 years.  One concept I am requesting that they not bring forward is any increase to the current height limits.  As Mayor, I can’t support that.

We have a lot to feel good about in terms of tourism.

Last year, despite a struggling economy, high gas prices and continued high unemployment, our summer rentals were up.  There are vacation destinations around the country who would love to be able to say that.  A great deal of the credit for our success goes to our Tourist Development Commission, who worked with the Chamber of Commerce to plan and launch the most comprehensive marketing campaign in the City’s history.

Earlier today, right in this room  Councilwoman Bergman and the rest of the commission discussed their 2012 campaign.  I encourage them to stick to their core mission of “getting people over the bridge”.  Let’s build on our success and continue what works. 

The Commission also partnered with the Chamber last year to open a Welcome Center on our 34thStreetGateway. 

A new facility at the annex site is another opportunity for this government to partner with the private sector toward improved and more efficient services. 

The annex site is just one of many improvements I support for our downtown.  Other objectives include a gateway type entrance, more efficient parking lots and improved holiday decorations. 

Our guests will be treated to another great season of programs, events and entertainment.  There’s been some concern about Stockton relocating some programs to another venue this year, but I can assure you we will present a spectacular concert and performing arts series, just as we always have.  Ocean City was providing concerts since the earliest days of the boardwalk.  When the Music Pier was refurbished about twenty years ago, we took our programming to a whole new level.  2012 will be no different. 

For our residents and guests alike, the final improvements to the Community Center were opened just a few days ago.  The renovated group exercise room and the new saltwater system for the pool are getting rave reviews.  What other town our size has a facility like that to enjoy?

Let me discuss the budget for a few minutes. 

My charge to the department heads was the same as it was for my first budget.  Start at zero and present what is required to maintain services in the most cost efficient manner.  I can assure Council and the public that this is a lean budget with no gimmicks and no hidden dollars.

This budget provides the services, programs and quality of life that are expected.  Safety, cleanliness and our infrastructure remain our top priorities. 

The total spending proposed by this budget is up approximately 3/10’s of one percent.  As a point of reference the CPI for the region was up nearly 3 % last year, or ten times what this budget includes. 

The amount to be raised by taxes is $213,000.less than last year. 

I’ll put it a different way:  this budget reduces taxes by almost one half of one percent. 

Finally, unless Council sees fit to make drastic changes to services, by the time this budget is adopted it should be under the Governor’s 2 % cap by as much as $2 million. 

If our ratable base was the same as it was last year, this budget would also provide a decrease to the tax rate for the first time in many years. 

However, the effect of this budget on individual property owners will vary due to changes to our ratable base from tax appeals and the corrections made by our Assessor’s Office.  We’ll discuss these issues at the budget work shops. 

We’ve managed to present this responsible budget despite the fact that our fund balance has decreased, again largely due to the ratable base. 

I’m able to represent to you that this budget is responsible not just for this year, but for the years ahead.  It’s consistent with my intent to maintain several common sense approaches to the budget such as:

A responsible use of fund balance;

Conservative revenue projections;

Responsible debt management ;

Cost containment from staffing reductions by attrition;

Negotiation of labor contracts that are fair to our team members and the taxpayers.

The credit for this responsible budget goes mainly to our team members.  They’re continuing to do more with less in every area of the City.  As Mayor, I continue to challenge them because I know they can meet these challenges.  They’re outstanding people. They provide outstanding services.  They are ethical people as well.

Our management team is significantly leaner than when I took office.  The department heads, their middle managers and team members are working together across department lines better than ever before.  That approach will continue and expand further in 2012. 

An important objective to me for this year is expanded services and communication through technology.  Our IT team spent much of 2011 completely redesigning the municipal web site ocnj.us  We now have a professional looking and functional web site for our local government, with a number of new features including replays of City Council meetings.  My comments and this budget will be available on the web site in a few minutes.

 At the same time, the Tourist Development Commission and the Chamber successfully partnered again on an improved tourism-based   web site: oceancityvacation.com  .  Finally we have the private sector doing what they do best and the government concentrating on city services. 

2012 will be one of the most exciting years in our history with the completion of the Route 52 project.  At a meeting we hosted yesterday we received the good news from NJDOT representatives that the project remains on schedule for providing four lanes of traffic by Memorial Day Weekend.  With no more draw bridges, improved safety and amenities that will make that causeway a recreation destination of its own – we are unlikely ever see a project like that again.

 Another focus for this year will be our continued partnership with our local veteran’s organizations.  We’ve recently installed an ADA ramp at the VFW and we’re committed to assisting the American Legion in their desire to have a permanent home.  My Administration will do everything we can to make this happen. 

We lost one of our most highly decorated veterans earlier this week.  On behalf of the entire City, I’d like to say that our thoughts and prayers are with the family of George Fulton.  I’m so proud that a few weeks ago I had the opportunity to help honor Mr. Fulton for his heroic service during World War II.  I’m so happy that many people in the community got to learn about his service.  I’ll never forget Mr. Fulton’s response to all of the fuss.  He said:  “It was your duty.  That’s what you signed up for.” 

That’s what Ocean City’s all about.  We have to always remember the people, the values and the traditions that have made this such a wonderful community.  As we debate issues in this room and work on this budget in the coming weeks, let’s do it in a positive atmosphere.  Let’s respect each other’s opinions, even when we differ. Let’s never forget what a special place we have here in Ocean City.

Thank you for your time tonight, and thank you again for your willingness to work together, to make Ocean City even more special."