Dave Sedlak

By BRIAN IANIERI Staff Writer
Published: Friday, January 18, 2008

SEA ISLE CITY - Mayor Leonard Desiderio instituted a hiring freeze this week after introducing a preliminary $17.6 million budget to City Council.  The mayor’s budget includes about a $1.8 million increase in the amount to be raised by taxes.  Desiderio said the hiring freeze is an attempt to control spending while the city faces a new state-imposed cap on tax levies, as well as dramatic increases in health insurance costs and pension payments. Desiderio said health insurance costs will increase 10 percent and pension payments will increase 99 percent in 2008.

The state has been phasing in larger worker pension payments to be made by the municipalities instead of the state.

Desiderio said the freeze means retiring employees will not be replaced, except for public safety.
“By imposing a hiring freeze, that will ensure we won’t be adding any new bodies to the payroll except for public safety,” he said.

The mayor’s budget will go before City Council next week.  “I feel it’s kind of high. I think we have to do some real cutting on this budget,” Council President Michael McHale said. “We’ll look at it, discuss it on council and see what we can do.”  “I think there are areas where we’re going to have to cut somewhere,” he said.  The city also scheduled two budget work sessions next week, addressing revenues and finances. 

 The proposed tax rate under the mayor’s budget would be 25.8 cents per $100 of assessed value. Homeowners would pay $258 in local purpose taxes per $100,000 of assessed property value.  Although the tax rate dropped about 11 percent from 2007, the decrease was due to a recent revaluation that increased property values.

The city’s ratable base grew to about $4.8 billion.  The city’s budget would increase about $1.3 million under the proposal.  The city’s budget work sessions are scheduled for 1:30 p.m. on Jan. 22 and 9 a.m. on Jan. 24 at the Public Safety Building on John F. Kennedy Boulevard. 

Chief Financial Officer James Terruso said the state-imposed tax caps will be especially problematic next year.  Insurance, utilities are going up without any regard for calculations, and contracts were negotiated before the cap levy was put in place,” he said. ‘When those contracts and salaries were done, they’ll be another headache.”

To e-mail Brian Ianieri at The Press:

BIanieri@pressofac.com

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