SEA ISLE CITY — Despite administration’s best efforts to reduce city expenses, this resort faces a tax hike of 2 cents as well as increased water/sewer user rates in the wake of the nationwide economic crisis, according to Mayor Leonard Desiderio’s “State of the City” address.

“I need to acknowledge the difficult economic times that are gripping this nation. There are a lot of people hurting out there, and Sea Isle is not immune to the pain,” the mayor said in his address to city council Jan. 13.

The city implemented a hiring freeze and found other cost cutting measures, but “our revenues have been severely depleted; and our surplus position remains weak,” the mayor stated. Desiderio said city staff “left no stone unturned” in looking for ways to save.

In the fall, the administration gave a budget projection of $17.6 million in appropriations, or 1.1 percent over last year, Desiderio said.

“The budget I will give you tonight includes appropriations of less than $17.1 million — half a million dollars less than our Sept. 30 projection, and representing a 2 percent decrease from 2008 appropriations,” the mayor added.

In the proposed budget, $13.16 million would be raised by local purpose taxes.

The projected tax rate is 27.4 cents or 7.89 percent more than last year’s rate of 25.4 cents. City taxpayers, therefore, would pay $274 per $100,000 of their property’s assessed value after paying $254 last year.

The city proposes using $600,000 of its $822,194 surplus to fund this year’s budget.

Even though there are some problems, Desiderio said he had a “good story to tell about the local government.”

“There are many reasons for this, such as the 10 percent reduction in workforce accomplished during 2008; the changes to our employee’s healthcare program resulting in several hundred thousand dollars in reductions; and an ongoing analysis of our operations in order to improve the efficiency and effectiveness of our delivery of public services,” he said.

The mayor stressed the need for city officials and residents to continue working together during these difficult times.

“The administration, council, and citizens have not always agreed on all things. There is nothing wrong with that — but no matter what, I continue to make this pledge to Sea Isle — I will always do what I believe is the right thing for this community — for everyone,” Desiderio said.

“I’ll make sure that we listen to everyone; that we consider all possibilities; and that the common thread of working together grows each day so that it becomes the chain that binds us together — as one community.”

Budget workshops are scheduled for Thursday and Friday, Jan. 15 -16 at 10 a.m.

In his address, Desiderio highlighted some of the city’s infrastructure initiatives, including the completion of a new water well facility at 55th St. and approval of the city’s water allocation request of 440 million gallons per year.

“The importance of this cannot be overemphasized, as this approval will ensure that we have the necessary environmental authorization to meet our anticipated water needs for many years to come,” he said.

The mayor announced state DEP funding of $2.6 million for a beach replenishment project in partnership with Upper Township.

“It is the State’s intention to place the project out for bids in February, and if all goes as planned, we’ll receive replenishment of our beaches from about 1st to 15th streets and 42nd to 52nd streets, a total of about 400 thousand cubic yards of sand,” Desiderio said.

He also said that the city was on the “verge of obtaining final approval for our new lifeguard headquarters and restroom facilities at 44th Street; and we hope to put the project out for bids this spring in order to start construction right after Labor Day.”

Finally, the mayor said on the bay side of the island, “our Marina project is now out to bid, and on Feb. 10 we’ll be requesting council’s authorization to award a construction contract for bulkhead improvements, a marina walkway, and decorative street lighting along 42nd Place.”

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