SEA ISLE CITY — SICTA, this city’s taxpayers’ association, is calling on officials to tighten their budgeting belts.

In a letter to taxpayers dated Feb. 19, SICTA President Tom Henry concluded that the city’s personnel salary structure and benefit programs are excessively costly to the detriment of its capital improvements and infrastructure needs.

“As the budgets were prepared in recent years, SICTA presented many suggestions to improve the efficiency and effectiveness of city government,” Henry wrote. “Sadly, these recommendations were ignored.”

In January, the group again offered some guiding principles for Mayor Leonard Desiderio and city council to use in developing the 2008 city budget, including:

• Increase spending for capital improvements and infrastructure needs.
• Reduce 2008 Tax Rate by a minimum of 33 percent, given the large increase in reassessed values.
• Lower this year’s operating budget significantly below the 2007 budget, other than for the above capital spending and infrastructure projects.

Despite these suggestions, Henry wrote that the mayor proposed a budget in January that called for a 17.5 percent increase in the amount to be raised by taxes, from $10.5 million last year to $12.3 million this year.

The town’s tax rate would decrease this year from 29.1 cents in 2007 to 25.8 cents this year. That decrease, however, is related to the recent revaluation, which saw Sea Isle’s rateables climb from $3.6 billion to $4.8 billion, a 32.6 percent increase.

Homeowners, therefore, would pay $33 less per $100,000 of assessed value this year, but their homes would be valued a third higher on average.

SICTA provided the Herald with a list of 28 items that came up at committee meetings and council workshops, which could potentially have saved taxpayers nearly $3 million if implemented.

Some of the items included: reduced health benefits for city employees, eliminate benefits for part-time employees, increasing co-pays from 50 cents to $5, implement a 4 percent room tax, reduce engineering costs with an internal office, eliminating tot-time program, and increasing city fees.

“The healthcare suggestions came directly from the city’s own benefits advisor,” he said.

Henry said none of the suggestions for the proposed budget were taken by the mayor, but two council members were working for cutbacks.

“(Council President Mike) McHale is trying to make some cuts right away and (Councilman John) Divney wants to do a salary study, which would reduce spending down the road,” Henry told the Herald. “It would make sense for the city to adopt both approaches.”

Concluding his letter, Henry urged taxpayers to attend council meetings and contact council members to demand significant budget cuts.

Council was scheduled to hold a public budget work session March 10, but has since cancelled the hearing.

The budget will be introduced at the regular scheduled council meeting on March 11 at 7 p.m. in the Public Safety Building on JFK Boulevard.

Contact Hart at (609) 886-8600 Ext 35 or at: jhart@cmcherald.com