By NANETTE LoBIONDO GALLOWAY
VENTNOR – The Board of Commissioners Thursday, April 23 introduced its 2026 municipal budget with a significant tax rate increase.
Due to rising operational costs, the $42.6 million budget is up $2.6 million over last year; however, the budget is more than $429,000 below the state-mandated appropriations cap.
The increase in appropriations is being partially driven by a $1.18 million increase in salary and wages, pensions and insurances.
The budget will add 6-cents to the tax rate this year. A taxpayer with the average assessment of $350,000 will see the municipal portion of their tax bill rise $213 this year, to $4,683 or about $18 more per month, City Administrator Tom Ciccarone said in his budget presentation.
The municipal portion accounts for 46% of a taxpayer’s total tax bill, with school and county taxes making up the rest. Police, Fire and Beach Patrol salaries and expenses account for about 30% of the municipal budget, while Public Works consumes 21%, general government administration 14%, pensions and Social Security 12%, insurances 11% and debt service 10%.
Ciccarone said over the last 10 years, the commissioners have systematically increased fund balance to $9 million this year, up from $7.6 million last year. The city will use $4.6 million in reserve funds to bolster the budget to control the tax rate increase.
Ciccarone presented numbers from the city’s annual debt statement that indicates Ventnor carries $46.4 million in debt, which is lower than other South Jersey shore communities, he said.
“I’ve heard comments about Ventnor having the most debt of anybody, but this comparison shows that’s far from the truth,” he said.
Only Longport, Avalon and Cape May have less debt, he said.
The city’s total debt service amounts to 1.21% of its average total equalized value of $3.8 billion, while the statutory limit on borrowing is 3.5%.
“We’re in good shape there. We could have a lot more debt if it is necessary,” Ciccarone said.
The city budgeted $200,000 in its capital improvement fund to cover downpayments for any bonds it might issue.
Debt service payments were reduced to $4.2 million from $4.4 million last year.
Due to diminishing reserve funding, the city is also proposing a $75 increase in the flat fee charged for water and sewer service, with another modest increase possible in 2027, Ciccarone said.
Auditor Leon Costello of Ford-Scott Associates of Ocean City said most South Jersey municipalities are experiencing an increase in taxes this year, mostly due to rising costs of health insurance and contracted salaries.
“You are not alone in where you are at,” Costello said.
Although new construction has increased the ratable base, it is not a panacea for controlling taxes as many people believe, he said.
This year’s increase in assessed valuations added $300,000 in tax revenue.
“Ratables increases do not have much of an impact, but it helps,” Costello said.
“It helps but it’s not the savior,” Commissioner Lance Landgraf said.
A public hearing and adoption of the budget will be held 5:30 p.m. Thursday, May 28 at Ventnor City Hall.
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