EDGEWATER: The budget that the Borough Council introduced this week includes a $29 tax cut for the average property owner, thanks in part to new revenue generated by nearly $78 million in construction that was completed in the last year, officials said.
The $28 million budget, which the council introduced in a unanimous vote on Monday, represents a nearly 5 percent increase over last year’s budget. The amount to be raised by taxes, however, increased by less than 2 percent, or about $363,000. “I’m very pleased with being able to pass on a tax break to the homeowner,” Mayor Michael McPartland said, adding, “Everything in Edgewater is booming.”
The new construction is expected to result in roughly $572,000 in new tax revenue this year, according to the budget. The Alexander, a 302-unit luxury midrise apartment complex built by the developer Fred Daibes, started renting units in May. Occupancy is also increasing at the sprawling mixed-use development behind Borough Hall called Edgewater Harbor, which features hundreds of rental units and condominiums as well as a Marriott hotel that is expected to open this spring. In addition, several single-family homes have been converted to duplexes in the past year, officials said.
On the cost side, the borough is expecting to pay roughly $341,000 more this year in wages, pension payments and insurance coverage for its employees. The Edgewater Free Public Library also will see a funding increase of about $75,000, to more than $1 million, as mandated by state law.
The borough’s debt service is expected to increase by about $430,000 this year to nearly $3.1 million. Edgewater’s total debt is about $46 million, said Chief Financial Officer Sercan Zoklu.
Moody’s upgraded the borough’s bond rating to Aa2 in July. According to the budget, the borough intends to spend $310,000 and authorize an additional $5.9 million in debt for capital improvements this year. A small portion of that sum will go toward road resurfacing and the rest will pay for the final phase of improvements at Veterans Field.
