At its April 23 meeting, Ocean City’s City Council introduced a $125.4 million municipal budget, which includes a 2.4% increase in the local property tax if no further reductions are made.
Council members unanimously moved the budget forward, opening the door for detailed review in the coming weeks. A public hearing and final vote are set for May 21. While no one opposed the introduction, Councilman Keith Hartzell signaled he still has concerns to address before casting his final vote.
Ocean City Mayor Jay Gillian characterized the proposal as a practical spending plan designed to maintain city services without unnecessary extras.
At the same time, Gillian pushed back against criticism he expects to intensify during the election season, warning of the “Monday morning quarterbacks” who second-guess budget decisions. Introducing City Chief Financial Officer Frank Donato, he noted his trust in the CFO.
“For the last 16 years that we’ve been working together, [he] and Lee on his team have been nothing but classy and have always done the right thing,” Gillian said.
Since first introducing the budget in March, its overall total has grown from $118.5 million to $125.4 million. The increase is tied to additional grant funding rather than higher spending or taxes.
One of the new funding sources is a $3 million donation toward a new airport terminal from Berger Realty owner Leon Grisbaum. The other is a $5 million state grant aimed at restoring the nearby shoreline at Shooting Island to strengthen storm protection.
Donato emphasized that these added funds do not impact the tax rate, as they are earmarked for specific projects. The city also plans to use $5.5 million from its surplus while maintaining nearly $4.8 million in reserve, according to the spending plan.
Beyond property taxes, Ocean City relies on a mix of revenue streams, including beach tag sales, parking fees, permits and investment income, according to the budget document.
Public comment at the meeting reflected some concern about rising costs.
One resident, Dave Hayes, pointed out that local taxes have climbed 22% in recent years and urged officials to revisit potential savings, particularly in employee benefits and pension expenses.
In addition to the operating budget, Council introduced a separate $23.5 million bond ordinance to fund capital improvements. Proposed projects include upgrades to sections of the Boardwalk, beach replenishment efforts and infrastructure work such as road and drainage improvements across several neighborhoods. A hearing and vote on the bond measure is scheduled for May 7.
Council also approved a contract valued at nearly $1.1 million to demolish the city’s former public safety building on Central Avenue. The project includes a $500,000 contingency allowance in case contaminated soil must be removed, according to OCNJ Daily.
Plans call for replacing the aging structure with a new police headquarters and municipal court facility, though design work is still underway. Construction could begin later this year and extend into 2028.
For now, city officials are preparing for weeks of budget discussions as they weigh how to balance costs, services and taxpayer impact heading into the new fiscal year.
