Schools

Despite Flat Tax Levy, Some Will Pay More in School Taxes

The Ocean City Board of Education approves a $41.9 million budget for 2012-13.

The Ocean City Board of Education on Wednesday unanimously approved a 2012-13 school budget that keeps the tax levy flat: the district will ask Ocean City taxpayers next year for $21,640,721, the same figure collected this year.

But many property owners will pay more in school taxes despite the district's austerity.

The tax rate increases from 18.87 cents per $100 of assessed value to 19.94 cents. The increase of 1.07 cents means property owners will pay an extra $10.70 in taxes for every $100,000 of assessed value. The owner of Ocean City's average $641,236 home will pay an extra $68.61.

Find out what's happening in Ocean Citywith free, real-time updates from Patch.

The tax rate increase was made necessary by a change in the value of Ocean City's taxable property. About 3,000 reassessments completed by the city and  resulted in a decrease of more than $681 million in Ocean City's ratable base. With less property value to tax, the tax rate went up.

The roughly 3,622 taxpayers whose properties were reassessed will likely pay less in school taxes—their decreases in assessed value will offset the tax rate increase. The rest of Ocean City's approximately 19,000 taxable property owners will pay more. The average between the two situations will result in the same amount of taxes being collected this year as last year.

Find out what's happening in Ocean Citywith free, real-time updates from Patch.

In a similar situation, many taxpayers also will see increases on the municipal portion of their tax bills—despite a .

The district's operating budget increased by about 2 percent for 2012-13—from $37,942,194 to $38,711,113. The increased spending is offset by an increase in revenue—primarily from the $838,440 the district will get from the state for accepting 68 out-of-district students as part of the new School Choice Program.

About 81 percent of Ocean City's operating budget is made up of salaries and benefits, according to Business Administrator Tom Grossi.

The overall budget (including debt service and a Special Revenue Fund) is $41,875,762. Last year's budget was $41,065,800.

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For a summary of the budget presentation, click on the PDF icon with this story.
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Because the tax levy increase of zero falls under the state's 2 percent cap, the public will not vote on the school budget—under a new law that lets districts move school elections from April to November. Ocean City can "bank" the 2 percent ($432,814) if it needs to exceed the tax increase cap in future years.

During public comment, a small number of citizens suggested the board may going too far in its efforts to keep taxes in check.

"Slow erosion is the undoing of the school system," Ocean City parent and Egg Harbor Township teacher Jacqueline McAllister said of a number small changes made to save money.

Many of the comments focused on increased class sizes in kindergarten classes.

"To me, this is not a business," Ocean City business owner and local grandparent John Stauffer said. "It's all about the kids."

Board of Education member Ray Clark asked if the school administration could share more information about class sizes, and Superintendent Kathleen Taylor said the district does have contingencies to hire kindergarten teachers based on enrollment numbers—.

(An earlier version of this story included an incorrect calculation of the tax rate change and its impact on an average home.)


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