Sea Bright budget calls for 3.1-cent tax increase
Council members look at ways to generate more revenue
BY MELISSA KARSH Staff Writer

SEA BRIGHT - The Borough Council discussed a $4.8 million budget March 18 that will increase the municipal portion of the tax rate around 3.1 cents per $100 of assessed value, if the budget remains the same by the time it is introduced in April.

The tax rate would go from 62 cents to 65 cents per $100 of assessed value, according to Councilwoman Dina Long, who chairs the Finance Committee.

Chief Financial Officer (CFO) Michael J. Bascom went over the budget, which includes an overall increase of $185,000 from last year's $4.5 million budget, with council members during a budget workshop meeting.

"The reduction in state aid is roughly $75,901, so a good portion of this [increase] is attributable to the [reduction in state aid]," said Bascom at the meeting.

He said the reduction in the amount of state aid the borough received equated to 1.4 cents.

Bascom also attributed the proposed tax increase to a number of other factors that include an increase in police pensions in the amount of $57,426; the increase in public employee pensions in the amount of $24,862; the increase in debt service repayment in the amount of $163,000; and increases in police salaries and wages in the amount of $41,000.

The increase in police pensions equates to 1.1 cents, the increase in public employee pensions is another half cent, the increase in debt service repayment equates to 3 cents and the increases in police salaries and wages is equal to 0.9 cents, according to Bascom.

"So if you notice, those major increases total a 7-cent tax increase, thus the rest of the budget has been reduced by 3.9 cents to beget this increase with 3.1 cents," said Bascom.

Bascom said the increase in the debt service repayment is due to the costs of the drainage and the roadway improvement program, and the replacement of two pieces of fire apparatus.

The council decided to introduce the budget April 15 and then scheduled the public hearing for May 20, but Bascom said some aspects of the budget might change by then.

"It looks like what will happen is the governor's budget will go to Legislature and the Legislature will recognize that towns cannot merge and create shared services in a matter of two to three months and will restore a portion of the aid. If that's the case, then that will bring your tax increase down. I would expect that at least half of the aid would come back," said Bascom.

He said if at least half the aid comes back from the state in the form of direct property tax relief, it will bring the tax rate increase down to 2.4 cents per $100 of assessed value.

The impact on a home assessed at $300,000 would be a $93 per year increase in themunicipal tax rate and less than $10 monthly, according to Bascom.

The amount to be raised by local taxes for municipal purposes is $3.42 million, which is an increase from last year's tax levy of $3.23 million.

Bascomsaid the amount to be raised by taxation falls $225,000 under the 4.5 percent levy cap, and the budget itself falls $346,000 under the 3.5 percent appropriations.

"This is a budget that reduces each department as low as it can possibly go without making fundamental structural changes in how we deliver services," said Long about the 10 percent reduction in the department budgets.

After Bascom finished his budget discussion with the council, Long led a discussion about how to generate more revenue for the borough.

"I have become obsessed with revenue because our costs keep increasing. We run a lean budget and with the exception of the things we spent money on intentionally… all the cost increases are completely out of our control, so the budget grows and our tax base is not growing," said Long.

Some suggestions for generating more revenue in the borough included increasing fees for mercantile licenses, construction and building fees, landlord registration and inspection fees and introducing fees for special events that take place on the beach.

Councilwoman Peggy Bills said that the council needs to look into the process of how court fees, which include about $200,000 in uncollected fees over the years, and taxes are collected.

She suggested setting up an automatic deduction or some sort of online payment system.

"Imagine a Sea Bright that generates enough electricity to run the town, all the homes [and] all the buildings," said Long.

She suggested using renewable energy, such as using a combination of solar, wind and hydroelectric energy, as a potential revenue generator for the town.

Councilman Thomas E. Scriven said that there is a proposal for Sea Bright to join in a new wave energy program that may be set up off the coast of Sea Bright. He also said there are other options that the council can look into.

"Years ago when the old borough bathing pavilion was in operation, the borough used to sell lockers and have shower facilities and restroom facilities for the people going to the beach. They used to makemoney on the lockers and the changing rooms. They used to charge a set fee and that was all part of the set revenue for the beach," said Jim Forsman of East Church Street. He also suggested renting beach chairs and umbrellas on the beach.

Other suggestions along those lines included renting out concessions on the beach that are not normally available such as canoe rentals, parasailing and pushcart businesses like hot-dog and ice-cream vendors.

"You want to find that happy medium where you're not interfering with existing business and providing a service that doesn't interfere with their operation," said Forsman.

Another revenue-generating apparatus that has worked for other towns is the building of a cell tower, which has been proposed as part of the refurbishment of the beach facilities, according to Long.

Council members are encouraging residents to go to the next Smart Growth Committee meeting March 27 to add their input for revenue-generating endeavors.