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Back to Article List Cape May County Budget Message For Year 2009 Release Date: February 11, 2009 CAPE MAY COUNTY BUDGET MESSAGE FOR YEAR 2009 FREEHOLDER DIRECTOR DANIEL BEYEL On behalf of the Cape May County Board of Chosen Freeholders – I’d like to offer this year’s message introducing the 2009 county budget.  For the last decade the county has witnessed substantial ratable growth including seven straight years of unprecedented double digit increases.  Not only did this growth allow the county to cut or maintain a zero increase in the tax rate for thirteen straight years – the revenues generated in property transfers kept the county tax levy modest as well as augmenting our surplus.  During these years when the county was seeing extraordinary ratable growth and substantial revenues – we recognized that we would inevitably face a slowdown.  We began to see this in 2008 when double digit ratable growth diminished to less than 4 percent and property transfer fees were four million dollars less than they were just three years before.  So while we were making substantial tax cuts – as well as assisting our communities and strengthening our tourism economy with the national awarded municipal grant program and the regionally recognized arts, cultural, and history grant program – we were also positioning ourselves to prevent a dramatic impact from a predictable decline in our astonishing growth.    We were deliberate in restricting our spending and saving for the future.  For a number of years – we instituted a self-imposed cap limiting the increase in our tax levy to the precise amount of new revenues.  We kept our tax levy well below the state’s mandated cap. We streamlined and consolidated operations and promoted more shared services among departments – agencies – and local municipalities.  Except for rare situations – we only allowed new positions that were either revenue producing – grant funded – or critical to public safety.  We carefully assessed every vacant position with an eye on abolishing as many as possible. Because of our financial discipline over the years coupled with strategic cuts again this year – Cape May County can face the 2009 economic crisis with a budget that protects county services with a minimum increase to the tax rate.    At this point – I’d like to express the Board’s gratitude to everyone in county government for their sincere efforts and productive role in getting us where we had to be for the 2009 budget.   After cutting their operating expenses ten percent last year – department heads and management staff in every case possible reduced their budgets ten to fifteen percent again this year.   Doing their part to protect county services and avoid layoffs of their fellow employees – every bargaining unit in the county – without hesitation agreed to change the Health Benefit Program which immediately saved $1.8 million in addition to another $1.2 million in cost avoidance.  On this note – I’d like to single out the leadership of the county’s largest union – AFSCME – for their cooperation.   In addition to the health benefit changes and other concessions such as holiday give-backs – and sick time restrictions to reduce overtime pay – they have repeatedly demonstrated their desire to team up with management to find creative solutions to the difficulties facing future budgets.    Again – on behalf of the Freeholder Board – I’d like to thank all of the department heads and employees for your commitment to the taxpayers of this county and the residents who rely on county services.   This year’s budget marks the first tax rate increase in fourteen years.    Even with the one cent increase – we expect that when all other county budgets are complete – Cape May County will still have the lowest tax rate in the state as well as having the overall best tax record. The specific overview breakdown of this year’s budget in rounded-off dollars is as follows:   1. The Total County Budget for the Year 2009 is $140 million compared to the adopted 2008 Budget of $136 million.  Total operating expenses were reduced by $26,000 for the 2009 Budget.  As previously noted – this reduction resulted from across the board cuts in virtually every department in county government as well as substantial savings in the county’s health benefit program.  The most substantial increase in operating expenses was the county’s contribution to the Board of Social Services.  The net amount of $404,000 is needed to compensate for dwindling reserves of the Board in addition to increased demands on their services.  As the economic crisis worsens and state and federal funds decline – we can expect a continual greater reliance on county funds to ensure that our most vulnerable citizens are protected. Total Salary and Wage increases were less than 4% representing a $1.7 million increase.   Most departments either cut their salaries through attrition or kept increases within the cost-of-living range with only a few exceptions in public safety.   2. The amount of money to be raised by property taxes to support the 2009 budget is $89 million compared to $83 million for the year 2008.  The amount of revenue other than property tax used to support the budget is $51 million.   3. The budget uses approximately 52% of our surplus.  Specifically - $12. 5 million of the available $24.2 million while reserving $11.7 million.  4. The County equalized tax rate for 2009 will be 16.14 cents per $100.00 of assessed value.  Although it will vary depending on the ratio of assessed value to true value in each of the County’s sixteen municipalities; an average taxpayer will pay $161.46 for $100,000 of property assessment. 5. The total amount of estimated ratables for the Year 2009 is $55 billion compared to $54.7 billion in the year 2008. This $350 million is the lowest increase in fourteen years. These are the highlights of this year’s budget.  I believe it continues to exceptionally serve both the residents and visitors of Cape May County.  Notwithstanding the first increase in the tax rate in fourteen years – it sustains our outstanding tax record while keeping our services among the finest in the state.  As the economy appears headed for a lengthy crisis – now that we’ve appropriately met the challenges of the 2009 budget – our focus is immediately set on the 2010 budget.  As I previously remarked – all indications suggest we will see a worse economy in the next year as well as perhaps the next two or three years.   During this historical time – Cape May County will concentrate on three fundamental areas.  The first will be to ensure future financial stability.  To succeed in maintaining a county government that fulfills our responsibilities and meets the expectations of our residents – we will have to reestablish our priorities and reshape our operations.  In the coming year – every expense as well as each department of county government will be carefully analyzed to judge its essential value and to see if there are alternative methods of providing the service.  There will continue to be an absolute freeze on all new positions.  Critical positions will only be added with vacancies from other county departments.  Except for public health and safety – all grant funded positions will be abolished if they are not fully funded by their respective grants.   In short – we will continue to make substantial cuts and institute a rigid attrition program that reduces the size of county government.  Our next priority will be greater investment in our infrastructure.  In addition to any federal and state economic stimulus that we may receive – the county earmarked over $600,000 in this year’s budget to secure $12 million to bond for facility improvements including bridge and road rehabilitation projects.    We also anticipate seeing the county library system moving forward with new and upgraded facilities.  Not only will these investments make necessary improvements to our roads and bridges – as well as enhance educational – cultural – and intellectual opportunities – they will provide long-term savings to future taxpayers – and will assist in the recovery of our local struggling economy.  Finally – as the clean energy era ushers in – Cape May County will step up its commitment for a policy that will promote greater conservation and develop alternative energy initiatives.  Within the next couple of weeks we will formally be adopting a county-wide energy master plan.    Every county facility will be upgraded to the most practical method of reducing consumption and switching to cleaner energy sources.  As part of the county’s commitment – every new facility will aim for the highest rating possible under the Leadership in Energy and Environmental Design standards. Part of the master plan calls for an independent generating station to electrify the county complex.  In addition to reducing the over demand of electricity during peak times throughout the rest of the county – it will allow us to be more selective of the energy sources we take from the grid.    On vehicles – with few exceptions – new purchases will continue to be hybrids.  We will also be increasing our use of electric and bio-diesel fuel operated trucks and buses.   On this important issue – we intend on making Cape May County government a leader in reducing pollution and protecting our biodiversity by rapidly moving toward cleaner energies and limiting our dependence on foreign oil.  These are historical times.  And resting within the difficulties and challenges is exhilaration in exploring new ideas and innovations as we make necessary changes.  On behalf of the Freeholder Board – I look forward to all of us working together as we move forward in getting things accomplished.   The 2009 Budget complies with the New Jersey “CAP” Law.  Public Hearing on the Budget will be held on March 10, 2009 at 7:00 P.M. in the Freeholders’ Meeting Room at the County Administration Building.  Public comment and recommendations are welcome.  In addition to being on hand at the Office of the Clerk of the Board at the Administration Building – all financial documentation pertaining to this proposed budget will be accessible on the county web site at capemaycountygov.net. In closing – I would – again – like to personally thank my fellow Freeholders as well as department heads – county employees and the budget team for putting together a very good 2009 budget. And again this year, I most importantly want to express the Board’s gratitude to the citizens of Cape May County for giving county government both the opportunity and the resources to serve you.   Thank you.

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