By Desirée Taylor
NJ Today
State oversight of Atlantic City’s finances will continue for a third straight year. The New Jersey Local Finance Board made that decision today because the city is facing fiscal challenges due to a wave of tax appeals.
“We have had tremendous amount of tax appeals, both residential and casinos,” said Michael Stinson, Atlantic City’s Director of Revenue & Finance. “Casinos just make up the significant portion of our taxable base so when we make a settlement with them, it’s a bigger impact.”
To help offset the effects of the tax appeal cases this year, Atlantic City officials asked for state approval of more than $100 million in bonds. “The total budget for Atlantic City is $200 million so obviously they can’t pay $100 million,” said Tom Neff, Director of the Division of Local Government Services. “So I think we’d be supportive of borrowing on a 20-year schedule.”
But the bonds will mean a tax increase of about $60 per year for the average property owner in Atlantic City. And Atlantic City’s fiscal woes may not be over because several more casinos are expected to seek tax appeals next year.
Meanwhile, city officials have taken steps to reduce costs by trimming the workforce, renegotiating contracts through collective bargaining, and sharing services.
WATCH VIDEO: