OCEAN CITY — City Council adopted its 2013 municipal budget at Thursday night’s regular meeting, increasing the tax rate and raising the average residential tax bill for local purposes by about $12.

The local tax rate will rise by nearly 3 cents to 38.5 cents per $100 of assessed value, so that the average residential property assessed at $594,800 would carry $2,295 in taxes to support the municipal government.

The $70.9 million budget has a tax levy of $43.6 million, which is about $440,400 more than last year.

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The budget was amended slightly since its introduction in April. The administration since reorganized its departments, eliminating three positions and ultimately reinvesting some money in the capital budget and dropping the tax levy by about $33,000.

Like last year, the effects of the tax increase will be felt differently because of an ongoing reassessment of property values on the island. Some properties have had assessments lowered, while others have retained assessments that might be out of line with current market values, so some people might see their tax bills go down if their assessments also went down.

In fact, the city lost about $850 million from its ratable base since last year, a drop from about $12.2 billion to $11.3 billion, mostly due to that partial reassessment of residential and commercial properties.

That lowered the average residential assessment in the city from $641,200 last year to $594,800 this year.

In other business, the city hired Roger D. McLarnon to be the director of its new community-operations department and set his salary at $110,000 this year.

The city approved a $613,000 contract with Aliano Bros. General Contractors for exterior restoration of the historic Ocean City Lifesaving Station.

Breakdown of Ocean City’s adopted budget

2013 2012 Change

Total appropriations $70.9M $68.7M $2.2M

Local tax levy $43.6M $43.2M $440,390

Tax rate 0.385 0.356 0.029

Average residential $594,800 $641,200 -$46,400


Average local $2,295 $2,283 $12

residential tax bill


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