Subject:
April 8, 2022
The 2022 proposed Budget for the City of Cape May appears to
be the product of careful fiscal management and a
conservative approach to meeting the fiduciary
responsibilities of the City to its taxpayers, residents,
and visitors. The Administration of the City is to be
commended for their efforts in assembling this proposed
Budget.
This year, as in every year, the Cape May Taxpayers
Association is examining the proposed budget for both a
clear understanding of all revenues, and of the costs and
benefits of services funded by those revenues.
With regard to revenue, the efforts of the Council in
response to several recommendations of the Municipal
Taxation and Revenue Committee, have been very productive.
The increase in the Occupancy Tax from 2% to 3% and
initiating that Occupancy Tax on Internet Rentals will
generate new revenue of well over $1.2 million.
Further, new requirements for the seasonal rental of
residential properties and the inspection of these
properties will generate new revenues likely double that of
recent years.
Revenue projections for 2022 are clearly conservative,
continuing the city’s past practice which has shown actual
revenues exceeding projected revenues by comfortable
margins. We understand that such a practice is good
budgeting because it provides support for operational
adjustments in spending while augmenting a reliable Surplus.
All indications are that 2022 will be a very productive year
for the Revenue Side of our City Budget.
While not often recognized as such, a primary mission of the
CMTPA is the support for services, programs and initiatives
which benefit the interests of the taxpayers of Cape May.
In particular a large part of those services is the
consistent and effective enforcement of the City’s
Ordinances and Codes. They are, in purpose and effect, the
protections for the Quality of Life in our community.
They are the Owner’s Manual for the public policies which
define our Quality of Life.
There is a wide range of regulations governing the use of
our community and the behaviors of both residents and
visitors. Parking, marijuana, Parking meters,
mercantile licenses, noise, public drinking, dogs on the
mall, trash disposal, traffic, personal vehicles, the
private use of public spaces, maximum seating capacities,
vacation rentals, hotel rooms, sidewalk repair,
construction, environmental hazards, food on the beach, and
a long list of others.
Some say too many, others say not enough. But all of
them are the policies set by countless Councils to protect
the Quality of Life in our town.
The degree to which they are enforced is the measure of the
value we place on insuring that our community is what we
believe it should be. Reliable enforcement secures the
value of these regulations. Understaffed and poorly funded
enforcement diminishes our ability to protect that which we
value.
Regulations are useless if no one knows what they are, or if
residents and visitors know what they are- but also know
that failure to follow the regulations carries no
consequence.
Over time, and for a variety of reasons, the growth in
staffing and in the systems and resources necessary for
comprehensive and productive enforcement has not kept pace
with the expansion of important regulations protecting our
community’s Quality of Life. As mentioned above, this
year alone will see a significantly increased burden on an
already understaffed and underfunded administration.
In this context, CMTPA feels strongly that it is time to
spend some of this significantly productive revenue stream
in order to secure the value inherent in the Ordinances and
Regulations of Cape May.
We feel there will be two benefits for such an action:
- The City will continue to realize the revenue
potential of our Ordinances and Regulations.
- The Quality of Life in our community will be secured
and enhanced by the reliable enforcement of Ordinances
and Regulations.
We therefore urge the Cape May City Council to:
- Increase the 2022 Operating Budget in the amount of
at least $100,000 for the immediate hiring of at least
three employees dedicated to the enforcement of all
existing Ordinances and Regulations.
- Direct the City Manager to design and
implement a comprehensive enforcement plan across all
departments for both new and current staffing and any
additional resources the Manager deems necessary.
Subject:
4/8/20
Cape May City Council has wisely postponed their final
budget hearing and public comment until their next Work
Session meeting of Tuesday May 5. It is expected to be
an online virtual meeting just like this week.
As a resort community our economic livelihood is based on
vacation and tourist revenues. Beach Tags, Parking
Meter Revenue and Room Occupation Tax are directly impacted
by outside influences that the City cannot control.
The virus impact will alter our financial structure, and the
City must develop a plan for dealing with these changes.
A carefully developed budget plan for 2020 will determine
our financial stability. One approach council is
considering is to make no advance budget adjustments and
just modify spending as the year evolves. The Tax Payers
Association (TPA) believes a conservative financial approach
must be in place to recognize the potential revenue losses
and impact to the business and residential communities which
directly affects the City revenues.
City leadership must establish a budget priority of
reductions, limitations and terminations to secure 2020 and
2021. In the event the virus health problems expand, not
only will the tourism season suffer greatly but many
taxpayers may be forced to defer paying their bills
including real estate taxes and even water and sewer bills.
The TPA recommends the City seek a stand-by financial
safety-net or Line of Credit from one or multiple lending
sources. Now is the time for these important
protections to be put in place, and hopefully never needed.
The leadership and courage to make essential hard choice
decisions will protect our economic and real estate tax
stability. Compassion for city employees and their
families, all taxpayers, and citizens must be the
priority…as is a reasonable budget plan.
- Ask each Department Head to review their budget for
significant reductions. The severity of the virus
may also require reductions in staff, new hiring freeze,
and consideration to how work assignment adjustments may
be needed.
- Cancel all wage increases, and overtime for
all departments.
- Delay all promotions for 2020. Initiate
discussions with our City Unions representatives that
certain events may necessitate layoffs.
- Cancel or freeze all non-essential purchases
and replacement of vehicles.
- Reduce the scale of part time summer
employment of police, public works, lifeguards and
non-essential personnel.
- Delay the Public Safety Building, Library, and
A.M.E. Church projects until 2021 and all their
associated costs. We do however encourage projects
already started to be completed such as the Convention
Hall Annex Building improvements. Since the Public
Safety Building may be postponed, we do suggest
reasonable expense to secure safe and healthy housing
for Fire Dept. personnel, such as trailers, nearby
available accommodations and even improvements to the
current building.
- The TPA supports the Sewell Tract as Open
Space however the $85,000 request by the Concerned
Citizens can’t be afforded at this time.
- Cancel the Jitney Transportation service.
- Review for modification all summer
entertainment contracts, for Convention Hall and Rotary
Park Concerts and the financial contracts for payment
schedules. The lack of Tourism this summer may require
the cancellation of all concert plans and related
spending.
- Review for reduction and modification of
legal, consulting, engineering and professional fees.
- Consider a moratorium on building projects
with possible adjustment in scheduling of the zoning and
construction offices.
- Advise all commissions and committees that all
expenditures must first be approved by the City Manager.
- Limit City participation and commitment to
provide free services and personnel for local events.
- Public safety, beach
safety and cleanliness, health, sanitation, trash and
recycling collections, emergency repairs, preventative
maintenance and essential services must be scheduled and
supported.
- The long-term health and
water consumption need’s for Cape May, West Cape May,
Cape May Point and the U.S. Coast Guard require the City
to proceed with the Desal Plant Expansion, and proceed
with an R.F.P. as soon as possible.
- Budgeting for the Wilmington
Ave. & Beach Drive flood protection project must be kept
in place.
- Soldiers and sailors
memorial.
- Our entire country is
making sacrifices and commitments to help during these
trying times, and so should Cape May. Since we can
and should reduce spending in the face of reduced
tourism revenue so we should reduce the taxing of our
local property owning citizens. Many people are losing
their jobs, retirement savings and claiming unemployment
insurance for the first time. It’s a double issue
since it’s happening to both those of us who live here
and those we count on for their summer leisure spending.
The TPA supports a goal of reducing our city spending
budget for the fiscal year 2020 with a portion of this
returned to the citizens in the form of a tax reduction.
- District and Regional School
taxes represent over 30% of the tax burden upon our
fellow citizens. Again, in the spirit of community
rallying we recommend Cape May City strongly encourage
both District and Regional School boards to prepare
their budgets with spending reductions and corresponding
property tax adjustments.
This is not an easy time for anyone and these suggestions
by the TPA are believed to be in the best interest of all
concerned, especially for our economic base which is as
fragile as the discretionary spending tourism industry is.
Federal and state revenue assistance may be expected to help
with some municipality shortfalls, but those that make the
tough decisions through local leadership can be expected to
succeed for their communities.
Subject:
3/9/20
The Taxpayers Association of Cape May strongly supports the
objective of building new facilities for both the fire and
police departments. As of today it appears there is only one
feasible location for this combined facility.
We feel the taxpayers will be supportive if all costs
are projected including soft costs to accurately
project net tax cost to Cape May citizens. To achieve this
objective City Council will need to compromise on details of
this single location to move forward.
If Council is unable to achieve such compromise we support a
binding referendum for the taxpayers to · take necessary
action.
Subject:
3/9/20
Please be advised it is the major ity position of the Board
of Directors of the Taxpayers Association of Cape May to
support the city's effort in assisting in the litigation
efforts of The Concerned Citizens for Sewell Tract
Preservation. The Taxpayers Association endorses a city
contribution to not exceed
$85,000 toward the legal expenses for the efforts by
Concerned Citizens of preserving the Sewell Tract as open
and undeveloped space and or a mutually beneficial
resolution. The Taxpayers Association supports this one time
maximum contribution.
Further, the Cape May Taxpayers board encourages the city at
an appropriate time, to take reasonable actions to initiate
the recommended objectives of preserving this space, also
known as "Sewell Point". The importance of such an
initiative is documented in the Conservation Element of the
Master Plan Reexamination, page 172 item 19.
On March 3, 2020 Cape May City Council
acknowledged the value of implementing an Advisory
Committee to evaluate and recommend potential
changes for taxation and revenue development,
identified as A Municipal Taxation and Revenue
Advisory Committee, Resolution No. 82-02-2020.
In these unprecedented fiscal
times, it is more important than ever that
Cape May begin to develop fair and effective way to
fund its future. For over three months now no
progress has been observed to move this Advisory
Committee forward.
Council acknowledged the value of this Advisory
Committee as illustrated by its unanimous approval.
When can the citizens expect this committee’s
membership to be named so their all-important work
may begin?
Read More - The Resolution
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