By SUZANNE MARINO
Staff Writer
MARGATE – The city of Margate is in an enviable position among the surrounding Atlantic County municipalities, proposing a city budget with virtually no change over last year’s tax rate.
A good year for city revenue and ratables has provided the commissioners with a healthy cushion from which to create a budget.
Margate has more than $3 million in its fund balance, or surplus account.
The proposed Margate City budget of $22,865,262 is up $1,264,637 over the 2006 spending plan. That figure represents everything in the budget such as the reserve for uncollected taxes.
The budget calls for $17,838,498 to be raised by the local purpose tax, up $311,000 since last year. That figure represents a flat percentage increase.
The city commissioners are using $2,200,000 from the fund balance account to offset property taxes, leaving $1,425,211 in the fund balance.
Two weeks ago the auditor Bob Cagnassola of Suplee Clooney, the company that aids in the budget process, said he supported the use of the fund balance because revenues for the city continue to increase, and the funds contributed to this year’s budget will be replaced with additional revenues over the course of the year.
City administrator Tom Hiltner said he agreed with the use of the fund balance.
“This is a very responsible budget. I feel we should use more surplus in the budget. We have it there, and our residents deserve a break in their property taxes.”
The tax rate for the city of Margate is $0.531 per $100 of assessed property value, just a fraction of a cent more than last year.
For a home assessed at $100,000, the owner would pay $530.84 in local purpose tax. Someone with a home valued at about half a million dollars would pay about $2,650. In the budgeting process each penny on the tax rate equals roughly $330,000.
There will be a public hearing on the Margate City budget April 19 at 6 p.m. at Margate City Hall.
