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Residential construction adds $111 million in new ratables
By NANETTE LoBIONDO GALLOWAY
MARGATE – There’s some good news for taxpayers in Margate again this year. The Board of Commissioners Thursday, March 3 introduced its $59.3 million budget, which includes the estimated cost of county and school taxes and a small tax rate decrease for property owners.
City auditor Leon Costello said the budget is “all good news” with no tax increase, and a “solid” fund balance.
The municipal portion of the budget is $2 million under the state imposed spending limits and $2.7 million below the tax levy cap, Costello said.
“It shows how conservative you’ve been in the past,” he said.
Commissioner of Finance Maury Blumberg thanked Chief Financial Officer Lisa McLaughlin and department heads for formulating the budget, and who “watch their spending so we can deliver this good news year after year.”
The tax rate in Margate has remained fairly stable over the last 10 years, mostly due to added ratables.
The tax rate decrease was made possible through an $111,376,700 increase in the city’s assessed valuation. Older properties are being razed in favor of building new, larger, and more expensive homes. The total assessed valuation of the city was recorded at $3.86 billion in October 2021, up from $3.75 billion in 2020. Residential properties account for 96.33% of all real estate in the city, and properties are currently assessed at about 80% of their true value.
The municipal portion of the budget, which accounts for 40.64% of all real estate taxes collected, will require taxpayers to kick in $23,761,789, which is $358,274 or 1.53% more than last year. The city will also raise $1,584,464 to support the Margate City Public Library, which will get rooftop HVAC units replaced this year. A breakdown shows the estimated costs of schools at $11 million and county taxes, including health and open space taxes, at $23 million.
The tax rate for 2022 will be 61.58 cents, .03 cents less than last year’s rate. The average tax bill for a property worth $556,200 will be $3,426, which is $1.11 less than last year.
A breakdown of the cost of personnel, including health benefits, overtime, pensions and employment taxes, shows $4.8 million for 28 police officers, $5.3 million for 35 firefighters and $43.4 million for 18 department heads and managers. The city will appropriate $150,020 toward the $2.09 million dollar value of accumulated absences, which are paid out when employees retire.
A public hearing on the budget will be held 4 p.m. Thursday, April 7 at Historic City Hall, 1 S. Washington Ave.
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