The meeting commenced with a spirited proclamation honoring the Ocean City High School varsity basketball team. The mayor and council celebrated the team’s triumphant season, culminating in a decisive 55-46 victory over Columbia High School to secure the state championship. The council members shared their admiration, emphasizing the teamwork and sportsmanship that defined the season. One council member noted the community’s overwhelming support, recalling the team’s celebratory return, which featured an escort by the Ocean City Fire Department. The recognition also extended to Coach John Bruno, who has devoted 37 years to coaching the team.

Shifting from celebrations to fiscal matters, the council examined the 2026 draft budget, which is set at $118,487,000—an increase of approximately $5 million from the previous year. The proposed budget includes a tax levy of $76.8 million, reflecting a rise of $2.8 million and resulting in a local tax rate of 58.58 cents, up by 1.38 cents. The budget presentation highlighted the significance of non-tax revenue sources such as licenses, fees, parking, and beach tags. Notably, parking revenue had decreased due to a less favorable tourism season, with hopes for recovery in the upcoming summer, particularly with a later Labor Day potentially extending the tourism period.

The council also explored the impact of evolving visitor demographics on local revenues. The rise of platforms like Airbnb and VRBO has influenced a trend toward shorter rental stays, prompting adjustments in budgeting for related income. The council emphasized transparency.

Further financial discussions covered revenue from various municipal services. The airport generated stable income between $140,000 and $150,000, while the boat ramp contributed $20,000 to $30,000. The aquatic center demonstrated recovery post-COVID, with rising attendance and revenue. The smoke detector program and rental registration also reported solid performance. The council noted a stable performance in the construction code department and a 3% increase in interlocal revenue from dispatch services to Upper Township, reaching $285,000. The library levy was recognized as New Jersey’s largest, increasing by $600,000 to $8.3 million, with any surplus returned to taxpayers.

The introduction of a 3% occupancy tax ordinance was a focal point, expected to generate around $1 million, albeit projections based on AirDNA’s rental market analysis suggested a potential $1.3 million. The council also reviewed the collection of $877,000 in delinquent taxes and a fund balance of $10.26 million, slightly down from the previous year. The balance is important for unanticipated emergencies and maintaining a strong bond rating, with strategies for replenishing it being a priority.

Discussion on real estate assessments noted an average assessment ratio of approximately 50%, reflecting a fair market value of about $1.3 million for a $650,000 property. The council addressed the timing of potential reassessments, considering current market conditions and prioritizing updated tax maps. The budget’s $5 million increase was driven by rising debt service, insurance costs, and utilities, with a noted increase in pension costs and a rise in trash services. Staffing levels were analyzed, showing a slight reduction with a current total of 282 full-time employees, primarily in police, fire, and public works departments.