County Administrator Steve O'Connor addresses Cape May County Chamber of Commerce March 20. Photo by Al Campbell

SWAINTON — The housing sales slump has made an impact on Cape May County government’s revenues, according to County Administrator Steve O’Connor.

He spoke about various facets of county government at the monthly meeting of the Cape May County Chamber of Commerce on March 20 at Avalon Golf Club.

“Two years ago, we generated over $10 million in real estate transfers. This year it will be less than $6 million and we anticipate next year it will be about $4 million, based on what happens in the housing market,” O’Connor said.

He said this year’s county spending plan would contain an additional $5 million in salaries and wages based on existing costs.

County government was placed under a “complete freeze on everything,” O’Connor said.

That included a 10 percent cut by all department heads.

Knowing that the financial good times could not last forever, O’Connor said the county continued to place pension funds in reserve, even though it was not mandated at the time.

Because of that, “This year, we will be OK,” he added.

Every year, for the past five or six years, O’Connor said ratables, the total amount of real property valuation upon which the county budget is based, increased 26 percent annually.

“This year it was up 3 percent,” he said.

“This shows the difficult times the county is going through,” he said.

“That 25 percent was way too much, and we had it longer than we thought. We saved money, recognizing the (income) rate would go down,” he said.

The money enters county coffers via the County Clerk’s office when real estate transfers are made during the time of a sale.

O’Connor said that this year’s tax rate will be 15 cents per $100 of assessed value, which is the same as last year.

“Next year, we probably won’t come in at a zero tax rate increase,” he said, based on the real estate market and the uncertain level of state funding to the county.

Although the county faces some tight finances, O’Connor said the popular Municipal Grant Program would continue. That $2 million program parcels aid to each municipality to enable projects that benefit the public.

The guidelines for those projects will be slightly relaxed over past years, he said.

Capital improvements are the main focus of the program, but “it’s open to whatever. If bond counsel says it’s bondable, it’s OK,” said O’Connor.

The Prosecutor’s Office is hiring 22 more employees, said O’Connor, including investigators and clerks. He said the county had “worked it out with the Prosecutor’s Office” to take effect over three years.

This year, a half million has been allowed to hire half the total, he added.

The county is mindful of taking steps to reduce its “carbon footprint,” and for that reason, O’Connor said the county has hired an engineering firm to scrutinize steps that need to be taken for an energy conservation program and look into alternative technologies to reduce costs and emissions.

As part of that, two new libraries in Stone Harbor and Sea Isle City, as well as the enlarged correctional center will use “the most efficient technology, possibly geo-thermal or solar,” he said.

O’Connor also mentioned relocation of the main county library branch. He said the county was working out details with Middle Township about placement of that facility.

“We want to make sure that Middle Township officials are on board,” he said.

That new branch will raise “our library system to the next level,” O’Connor said.

Major renovations are being planned for the 30th anniversary of the county Park and Zoo.

He said the park, college campus and park of Middle Township’s Davies Recreation Complex would be irrigated with recharged water treated by the county MUA.

O’Connor also spoke of the Beesley’s Point Bridge, which the county believes the state Department of Transportation should “take over and repair.”

He said State Sen. Jeff Van Drew (D-1st) and Freeholder Director Daniel Beyel are “leading the charge,” in trying to get the DOT to fix and reopen the span.

“We are spending significant money on enhancing the correctional center,” he said.
“We need more beds,” he added.

Until about three years ago, average population was 140 in winter and 200 in summer in the facility designed for 180.

“Now there are 310 inmate in there,” he said. It’s projected in August that number will grow to 350-360.
He said drug court, and several other programs are reducing the number of those incarcerated, but the center still must be enlarged.

Contact Campbell at (609) 886-8600 Ext 28 or at: al.c@cmcherald.com