Ocean View hikes property taxes by 50 percent

The Ocean View Town Council unanimously voted Tuesday to approve next year's budget, which includes a controversial tax hike. 

Residents remained largely opposed to the 50 percent property tax increase, which the town states will help it wean itself off unreliable transfer taxes. 

The budget was in its fifth design, as council members sought to make cuts in public safety staff and reduce overtime and engineering costs over the next five years, as well as decide by how much to increase property taxes. 

The vote follows two workshops packed with opposition, as residents cited concerns over the proposed property tax's magnitude. 

For a house that is worth $200,000, the annual property tax rate is about $165. For a $400,000 home, that rate goes up to about $330. 

Fairway Village resident Berton Reynolds, who is running for District 4 against council member Carol Bodine, said tax increases need to happen responsibly and over time.

"A 50 percent increase at one time is not responsible," Reynolds said. "There are a lot of people in Ocean View on fixed incomes. It's not like they can find a pot of money."

Some residents said they'd rather the town gradually increase property taxes while still utilizing the transfer taxes. 

Council member Frank Twardzik called transfer taxes a "feast or famine issue" that the town has been relying less and less on for years. He said the increase in property taxes was the "right decision," popular or not. 

Background:Ocean View Council dismays residents with proposed tax hike

The town is also changing over to Sussex County assessed values. The finance department determined the current tax rate of $.1652 per $100 of assessed value is equivalent to $1.78 of county assessed values, meaning they both bring in about $1.4 million in revenue.

With the 50 percent property tax increase, the new revenue neutral tax rate will go up from $1.78 to $2.67 per $100 of assessed value.

Finance director Sandra Peck said the switch will save the town over $225,000 over the next five years.

In the new budget, all the drainage projects were moved out one year further, except for Woodland Avenue and Woodland Park. There were no updates to the Water Fund Budget. 

Residents from Fairway Village said the town wasn't doing enough to help them fight their developer, who is looking to build and rent out townhouses, which could affect current homeowners' ability to sell, Reynolds said.

The development is split between single family homes and townhouses. 

The townhouse rentals were not the "original intent" of the developer's design, Reynolds said, and will allegedly bring down property values. Fairway Villages residents have a lawsuit against the developer.

A sense of dissatisfaction seemed to inundate the small Town Hall meeting room as Fairway Villages residents voiced their concerns over property values going down and the lack of roadwork completion in their neighborhood. 

Mayor Walter Curran said the town did what it could, but it is not responsible to enforce any private contract held between a developer and the individual property owners. 

"I'm very sympathetic to this issue," Curran said to residents, some of whom retorted, "No you're not." 

Former town administrative official Charles McMullen and the town's engineer, Kercher Engineering, were also brought up at the meeting. 

Allegations had surfaced on social media the weekend prior, alleging that McMullen and Kercher conspired to embezzle money from the town.

More:'No merit' to embezzlement allegations in Ocean View, officials say

"He voluntarily resigned," Curran said Tuesday night. "The Facebook posting was libelous and scandalous. That person has been warned. Those statements that were made about Charlie McMullen and Kercher are totally false. End of story." 

The election for the District 4 council member is on Saturday, April 14 and will be held at Town Hall between 8 a.m. and 5 p.m.