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Back to Article List 2007 Budget Message From The Freeholder Director Release Date: January 23, 2007 CAPE MAY COUNTY BUDGET MESSAGE FOR YEAR 2007 FREEHOLDER DIRECTOR DANIEL BEYEL   On behalf of the Cape May County Board of Chosen Freeholders - I am pleased to offer the 2007 county budget.  This year's budget marks the seventh straight year of a county tax rate cut.   It also represents the twelfth straight year we have either cut the rate or kept it at a zero increase.  This year's cut maintains Cape May County's tax record as the overall best of all of the twenty-one counties in the state.   The budget cuts the tax rate slightly under two cents to a new record low of fifteen cents.  It's the lowest rate in Cape May County history and again - the anticipated lowest rate of any county in the State.   The specific overview breakdown of this year's budget in rounded-off dollars is as follows:   The Total County Budget for the Year 2007 is $133 million compared to the adopted 2006 Budget of $128 million.  Operating expenses account for $3.5 million of this increase.   Notably - health insurance and pension increases represent approximately $1 million.  Inmate Medical Care - State Mental Health - and Welfare increases are $862,000. Additional expenses for the upcoming expanded Technical High School are $675,000.  County-wide fuel and utilities are up close to $300,000.  Immediate needs at the Prosecutor's Office including the funding of a county-wide Swat Team raises their budget by $255,000.  Finally - a significant amount of the operating cost increase are for the transition of in-house cleaning services being contracted out to a private vendor.  The additional cost of this contract will be compensated by the attrition reduction of county employees.    Total Salary and Wage increases for all contract obligations and anticipated cost-of-living increases for non-bargaining unit employees are $2.7 million.    Of this amount - $178,000 is earmarked for seven new positions consisting of an animal shelter manager in place of the previous interlocal agreement with Cape May City - one Sheriff Officer to comply with new court mandates - one Correction Officer for the increased inmate population - and two part time and two full time employees for the county's home health agency to address the growing needs of our senior citizens and homebound residents.  Please take note that an additional two unbudgeted Sheriff Officers were hired in 2006.  Also - it's important to mention that all of the new hires for the home health agency are offset by revenues generated from the program.   The amount of money to be raised by property taxes to support the 2007 budget is $80 million compared to $75 million for the year 2006.  The amount of revenue other than property tax used to support the budget is $53 million.   Notwithstanding a reduction from the budgeted real estate transfer fees from the County Clerks Office; the Nursing Home - the Home Health Agency and Interest on Investments permit a budget increase of $2.8 million in revenues.    The budget uses approximately 52% of our surplus.  Specifically - $15.3 million of the available $30 million while reserving $14.4 million.  Because of a $3.4 million dollar reduction in real estate transfer fees from the county clerk's office - the county is using $4.5 million less in surplus to support the 2007 budget than it used for the 2006 budget.    Additionally - the County used $4 million is surplus last year for its innovative Municipal Capital Improvement and Cultural - Arts and Historic Funding Program.    In this year's budget - $200,000 is re-appropriated to strengthen and enhance our tourism market and aesthetic appeal by offering funding to our Cultural - Arts - and Historic organizations.   Additionally, the appropriation to Historic Cold Spring Village is increased to $200,000 in the budget.   Instead of using surplus - a new revised Municipal Capital Improvement program will be offered through a forthcoming Bond issue.  The specific amount and parameters of this program will be developed and disseminated to the 16 municipalities within the next two months.    We believe this funding program is a financially responsible and productive method to help local governments pay for important capital improvements for their communities.    One final note on the category of surplus is the potential amendment to this year's budget.  The County Prosecutor's Office is currently undergoing an outside independent review of its manpower needs.  If the result of this study mandates additional personnel and resources for the Prosecutor to effectively carry-out his responsibilities - the cost will be paid from the county surplus.     The County equalized tax rate for 2007 will be 15.15 cents per $100.00 of assessed value, compared to 16.96 cents in the year 2006 providing for taxpayer relief in the amount of 1.81 cents.  Although it will vary depending on the ratio of assessed value to true value in each of the County's sixteen municipalities; an average property assessment of $100,000.00 will see a reduction in county taxes from $169.63 to $151.50.   The total amount of estimated ratables for the Year 2007 is $52.8 billion compared to $44.2 billion in the year 2006. This is an $8.5 billion or a 19.27% increase.   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.  It sustains our outstanding tax record while keeping our services among the finest in the state.  It saves for the future - and it accommodates the increasing demands and responsibilities of county government.    A final noteworthy component of our budget - and county operations in general - is our commitment to improving services and reducing costs by sharing services.  As we hear state government promote shared services as the primary stimuli in lowering property taxes - Cape May County has long been in the forefront of sharing services and programs with our neighboring counties.     When you look at our community college - the Medical Examiner's Office - and available job training programs - I can confidently say - that Cape May - Atlantic - and Cumberland counties have the best working relationship of any other counties in the state.   We are enhancing services to our residents and reducing costs for our taxpayers.    As we continue to explore partnering with our neighboring counties for additional services and programs - Cape May County is also positioned to take the lead in assisting local governments in developing better approaches in cutting their costs.    Throughout this year - Cape May County government staff will be assigned to work with local governments in evaluating the potential opportunities of sharing services.  We will provide expertise and hands-on assistance in helping our local governments form partnerships with the county as well as with each other to both improve services and cut costs.   In short - Cape May County will continue its role as a leader in developing shared service arrangements.   The 2007 Budget complies with the New Jersey "CAP" Law, which limits a property taxation increase to 2.5% in the year 2007.  Public Hearing on the Budget will be held on February 27, 2007 at 4:30 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 - as always - I would like to personally thank my fellow Freeholders as well as all of the department heads, county employees and the budget team for their commitment to county government and their hard work and professionalism in working with the Freeholders in preparing this budget.   And again this year, I most importantly want to express the Board's genuine appreciation 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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