(Avalon, NJ)—Avalon’s 2024 municipal budget includes no tax increase while the Borough maintains its AAA bond rating from Standard and Poor’s and continues the practice of the elimination of long-term, general obligation debt. The $35.8 million budget was introduced by title only during the March 13th Borough Council meeting; final adoption of the spending plan is anticipated at the April 10th Council meeting.
“This budget is a win for Borough residents as extraordinary inflationary pressures on the federal level severely stress municipal budgets”, said Avalon Mayor John McCorristin. “The budget advances municipal services, maintains a healthy surplus, addresses critical needs, and pays down $9.5 million in short term debt and capital projects. This budget did not happen by accident as the Departments of Revenue and Finance and Administration, along with the Borough Council Finance Committee and department heads, collectively worked on this budget for the benefit of our residents and property owners”.
The municipal tax rate in Avalon will be maintained at 20.6 cents per $100 of assessed valuation, among the lowest tax rates of any developed community in New Jersey. The budget is supported with the use of $4.91 million in surplus funding, and $1.87 million in excess library surplus funds. Avalon maintains and operates its own free public library that has earned a five-star rating for the past 14 years.
Many capital improvement projects in Avalon will be paid by cash. The State requires at least a five percent downpayment on capital projects that require borrowing. Avalon’s practice is to pay for capital projects with cash or with a 20% downpayment in most cases to reduce future debt obligations. Recently, Avalon was again awarded an AAA bond rating from Standard and Poor’s for its prudent financial management.
In 2024, Avalon’s capital projects include a sand back passing project to replenish winter erosion in the north end of the community and a major rehabilitation at Bay Park Marina. Three new tennis courts are being installed at the 8th Street recreation complex, and investments will be made in the beach patrol building and beach mats for accessibility. Various security updates at Borough facilities will be made, and various streets and bulkheads will be addressed. Avalon will commence a lead water service identification and replacement program as directed by federal and state law and is obligated to be performed by every community in New Jersey.
The Borough intends to maintain its Class 3 rating in the Federal Emergency Management Agency while exploring the potential attain Class 2 status. The ranking provides Avalon property residents with a 35% discount on flood insurance premiums.
Avalon has reduced, or maintained, the municipal tax rate in the previous nine budget cycles except for 2023 when a small tax increase was required due to an eight percent increase in the federal Consumer Price Index (CPI) in 2022. During those nine years, the CPI increased by approximately 25 percent.