1. N.J. Cap Law: 3.5% is the CAP, with few exceptions, notably capital improvements, debt service, shared service agreements, increases to pension and healthcare greater than a normal cost of living increase, solid waste, and stormwater management costs as approved by the borough. The borough compromised its CAP base in 2021 when a career Fire Department was created without public approval via referendum, which would have allowed for a CAP increase had that been done. 2. Staffing changes have been made to accommodate the CAP and increase efficiency. The Finance Department was consolidated, reducing expenses. The proposed Police Department reorganization should save $150,000 with no layoffs. Public Works has promoted from within for a new director and won’t replace the assistant director position, resulting in $40,000 in cost savings. A new Director of Recreation and Tourism was hired internally and the Tourism and Public Info Officer position would be outsourced, saving $50,000. The Borough is in the process of negotiating a Shared Services Agreement with Wildwood Crest for Construction Code work. Savings here could be $53,000. His duties will be passed on to one of the Career Firefighters. That could save $71,000. The Fire Dept. Inspector retired and won’t be replaced. 3. Debt Management. The borough is seeking grants for part or all future capital projects (as occurred with the 82nd and 96th Street playgrounds). The borough is pursuing a pay-as-you-go initiative wherein money is reserved for future needs versus borrowing. The CFO is looking at debt structuring with a goal of budget stability and is eager to reduce the reliance on debt. Budget Outcome: Here are the “Projects and Possibilities” in the proposed Budget: 1. Build up the surplus, which avoids borrowing. After $2,400,000 is used for the 2025 budget, the surplus balance should be $1,750,000. If the borough doesn’t re-build this surplus, it won’t be able to use it. 2. Debt service should decrease by $446,000. 3. Full-time positions to fill and included in the budget: Borough Administrator; Municipal Clerk; Asst. to Administrator/Muni Clerk; and Zoning Officer. 4. A new Public Information Officer was contracted for improved communication. 5. New servers, computers, etc. 6. New playgrounds (the share of the cost) at 82nd and 96th Streets 7. All tourism events 8. Plant management at the Bird Sanctuary; beach and lagoon surveys. 9. Employee raises at 3.75% COLA (there were no raises in 2024). 10. Pay-as-you-go funding as follows: Capital Improvements $430,000; Information Systems $120,000; Borough Buildings/Firehouse improvements $575,000; and recreation improvements $400,000. 11. Reserves: Back Bay Dredge Management at $350,000 in 2025, bringing total reserve to $1,842,000; Beach Replenishment of $350,000 in 2025, bringing total reserve to $941,000; and Borough Bulkhead Replacement of $200,000 in 2025, bringing total reserve to $400,000.
As a courtesy to our SHPOA Members, we’re bringing you a summary of each Stone Harbor Work Session and Council Meeting. Intended as summaries, these intentionally don’t have a lot of details and are not a substitute for the official Borough minutes.
Work Session
Public Safety
Councilmember Frank Dallahan reported that talks are ongoing with police on a proposed reorganization ordinance of the Police Department.
Recreation and Tourism
Councilmember Vincent Foschini discussed a resolution proposing the following changes in pickleball fees for the upcoming season:
•$75 for Stone Harbor taxpayers
•$100 for non-taxpayers
He noted that Sports Clinics registration will begin on 5/1/25 for property owners and on 5/15/25 for all else. The registration deadline is 6/22/25.
Department of Finance
Cynthia Lindsay, Chief Financial Officer for the borough and interim administrator, formally introduced the 2025 budget. Much of the session was focused on this area. Here are the highlights:
•She said the budget is “legal and balanced,” with revenues and expenditures each at $23,989,730.
•The budget includes a tax increase of 2.2 cents, i.e. from .312 to .3345 per property, a 7.2% increase. CFO Lindsay emphasized that the increase is driven by capital improvement needs and NOT operating expenses.
•She said the focus is on looking ahead and moving forward. She listed the challenges in the development of the 2025 budget as follows:
1 Appropriation Cap Law
2 Debt Management
3 New staff hires, particularly key personnel
4 Capital expense needs for borough buildings
5 Increasing insurance premiums (general liability, workers comp, employee health)
6 Utility cost volatility
7 Ever increasing state reporting requirements
8 Specifics around some of these challenges and strategy were discussed:.
•Here is how tax dollars are allocated:
7% School
50% County
43% Local Budget
Here is how the 43% “retained” by the borough gets allocated:
21% Public Safety
18% Public Works
16% General Government
10% Recreation and Tourism
22% Debt Service
13% Capital Improvements
Water and Sewer Budget
As the Water and Sewer Utility must absorb a share of the administrative costs for operations, etc., there arose a $965,000 shortfall in the 2025 budget for the Utility, which had been erroneously allocated fully to the Borough General Budget. To close the gap, a rate increase of $125.00 per quarter for the final 3 quarters of 2025 will be implemented for every property.
The Budget was formally introduced on 4/15 and a Resolution approved recommending adoption. A Public Hearing will be held on 5/20/25 and the budget will be formally adopted if no issues arise.
Regular Meeting
At its regular meeting, council members approved several resolutions and ordinances regarding the 2025 budget.
To view the agenda, please click https://stoneharbornj.org/wp-content/uploads/2025/04/04.15.2025-Regular-Meeting-Agenda-and-Documents-2.pdf
To view a video of the meeting, please click: https://www.youtube.com/watch?v=N3CoUB3H1ic
NOTE: The Cape May County Herald recently had articles related to topics covered at this Council Meeting. These articles can be found along with others as part of their coverage of Stone Harbor.
As you may know, our friends at the Cape May County Herald are offering SHPOA members only an exclusive discount for Herald subscriptions — 25% OFF with code “SHPOA” — and they are also providing your association advertising space in print and online for us to promote the association and the initiatives important to our members.
To subscribe and use the discount, please click on https://capemaycountyherald.com/subscribe/ and use promo code “SHPOA” at checkout to claim your 25% discount. Only valid for new subscribers.
To read past Stone Harbor Council Meeting summaries, please click here: https://www.stoneharborpoa.org/category/borough-meeting-summaries/
To watch recordings of past meetings, please click here: https://stoneharbornj.org/agendameetings/watch-mayor-and-council-meetings-online/
