Atlantic County Executive Dennis Levinson presented his annual budget address to the Atlantic County Board of County Commissioners on Thursday, straying several times from his prepared remarks to address in detail issues affecting taxpayers.
First up, he eliminated his remarks about the advent of offshore wind projects due to an Executive Order signed Monday by President Donald Trump, calling for an undetermined pause in development of offshore wind projects and soliciting any new leases.
“That’s yesterday’s news,” Levinson said, stating that Trump “listened intently” to Congressman Jeff Van Drew, R-Atlantic, Cape and Cumberland, who advocated against wind turbines off the coast of New Jersey.
“It seems it’s a thing of the past. We’ll see what happens,” Levinson said.
He suggested the wind turbines could be put on land, citing $1.4 million in savings from the wind turbines at the ACUA Water Treatment facility in Atlantic City.
Levinson spoke extensively about the Atlantic City PILOT program lawsuit, which the county has spent nearly $1 million to defend during two appeals.
“We won all of them,” Levinson said, hoping the county will eventually recoup those costs. “Now it is punted to a lower court.”
Levinson said the county is owed $14.1 million in taxes, calling on state Sen. Vince Polistina, R-Atlantic, to “fight for us” as a new PILOT program is negotiated to replace the existing PILOT that will expire in 2026.
“Maybe you can come up with something,” he told Polistina, who attended the meeting.
Levinson said he will revisit the countywide tax assessment program that he has suggested for years, asking for the board’s full cooperation. He used Margate’s assessed valuation as an example of the inequities in fair assessments for all taxpayers.
Margate’s current overall valuation is assessed at about 50 percent of fair market value, he said, and that a taxpayer whose property is currently assessed at $1 million is paying county taxes like they own a $2 million property.
“It is imperative that all properties be as close to 100 percent so county taxes are based on true property values,” he said.
He also noted that the county has no say in the state formula that equalizes county assessments.
Levinson also encouraged municipalities to join the Atlantic County Central Municipal Court system, which was developed to save municipalities on the cost of running their own courts and to provide social services that can prevent offenders from returning to court for subsequent offenses.
Currently, 10 of the county’s 23 municipalities are participating in the central court. This year, participating towns will save as much as 45 percent of the cost of running their courts for taxpayers, about $1.2 million.
Using Ventnor as an example, he said the city was paying as much as $400,000 to run its own court but now is paying about $200,000.
“Ventnor saved 50 percent,” he said.
Levinson noted that many municipal government officials cling to the concept of home rule for not joining the countywide system.
“Home rule is archaic,” he said. “It’s difficult to understand how non-member towns can argue against joining the Central Municipal Court if they are truly interested in reducing costs and saving money for their residents.”
The social services being offered to offenders with mental illness, substance abuse and domestic violence issues “saves lives and saves costs,” noting the recidivism rate for those who obtain social services through the court is zero.
He also spoke extensively about Meadowview Nursing Home, which has been operating at a deficit since the COVID-19 pandemic. Levinson said he is trying to transition it into a veterans’ hospital facility.
Levinson said there are currently only three county-run nursing homes left in the state and that the county is “bleeding money” trying to keep Meadowview operational. The home has 180 beds and only 80 are occupied, which reduces the revenue needed to keep it operational.
Levinson said he met with Meadowview employees, whom he called “angels” who do for the elderly what their own children cannot do, to assure them that he would not sell the facility unless a new operator would guarantee them two years of employment and health benefits, “so no one is blindsided.”
He also said he is negotiating with the Diocese of Camden on a deal that would result in the diocese building a senior housing complex on a plot of land next to Meadowview that used to be a burial ground for poor people of Atlantic City. He said the county conducted a sonar investigation he believes would allow the deal to move forward.
He touted the success of the National Aviation Research Technology Park in Egg Harbor Township, which recently added two new tenants to the existing building and is currently in the process of erecting a second building at the cost of $14 million. He said developer Leo Schoffer is planning to build a 111-room hotel complex adjacent to the park.
Levinson lamented double-digit increases in the cost of providing health insurance benefits to employees of the county’s 23 bargaining units over the last two years and said the county continues to investigate a new plan being vetted by the unions that would be equal to or better than the NJ State Health Benefits program.
He also said the county no longer has use of American Rescue Plan funds provided to local governments as a result of the COVID-19 pandemic. Levinson said the county used those funds to install much-needed HVAC systems at the county office building, libraries, conduct drainage projects and used $7 million to cap a section of the ACUA landfill to help mitigate odors.
Salaries and wages are up 3%, so he will call for a six month hiring freeze. He said operational costs are increasing, and county officials are looking for ways to reduce the budget before it is introduced after the governor issues his budget address by the fourth Tuesday of February.
Overall, expenses will increase 6.63%. The county will use half of its budget surplus or $19.3 million to bolster the budget.
“Despite these increases and loss of ARP funding, we believe we can still find a few more cuts that should help us reduce the county general purpose tax rate again this year,” he said.
Library and public health taxes will remain stable, and he anticipates a 1- to 1.8-cent tax rate decrease.
“Final numbers will be determined after all municipal values are submitted to the Board of Taxation,” he said.
Click here to read Levinson’s 2024 Budget Message.
