Belmar Budget Tops $24 Million; Tax Rate Flat

Belmar taxpayers have a zero percent tax increase in the 2013 municipal budget of $24.65 million. The borough council passed its budget last week.

Belmar's municipal tax rate equals 65 cents per $100 of assessed valuation. A home assessed at the borough average of $336,003 would face a municipal tax bill of $2,183 annually.

This is the third year Belmar has passed a zero percent tax increase.

The council voted yes on the budget, with Councilman Jim Bean voting no after explaining his concerns over increased spending. While the borough is receiving a $4.5 million FEMA Community Disaster Loan to pay for the Hurricane Sandy impacted spending and revenue loss, Bean disagreed that it could be assumed the loan would be forgiven.

Mayor Matt Doherty said the CDC loans often are forgiven at the end of three years after a FEMA audit makes sure the loan was spent on disaster-related line items. Bean said it wasn't a sure bet and was concerned about the amount of debt the borough was taken on, plus the fast pace of spending on projects, were among the reasons he voted no.

At $24.65 million, the 2013 is about $4.1 million more than 2012.

Belmar officials said they took a conservative approach in the budget, for example reducing the expected amount the beach utility budget would be due to an assumed downturn in revenue due to Hurricane Sandy, and a reduced amount for parking meter revenue because newly installed meters were only turned on last week.

Doherty said the increased budget is almost entirely credited to Hurricane Sandy, though some increases came for contractually obligated benefits.

During the budget hearing, some audience members thanked the council and Belmar administration for its efforts crafted the budget and rebuilding the borough after Hurricane Sandy, but were also critical at times.

Some were concerned about the use of surplus — $700,000 from the surplus account applied to the budget, leaving $697,703 in the surplus account — in both the main budget and beach utility's surplus. Others said the proposed budget could impact the tax rate of future budgets, or that budgeting the entire loan amount into one tax year instead of across three years would have a negative impact.