Ocean City taxpayers group to appeal ruling
By MICHAEL MILLER Staff Writer, (609) 463-6712
Press of Atlantic City
Published: Wednesday, November 15, 2006
OCEAN CITY — A group of taxpayers who want to tie city spending to the federal cost of living is appealing a judge's ruling that the proposal is unlawful.
Ocean City sued residents behind the Taxpayer Protection Initiative, a move to tie the city's budget to the federal Cost of Living Adjustment. This was 4.1 percent for 2006.
Superior Court Judge Joseph C. Visalli in October ruled in the city's favor, saying the proposed measure would lead to financial chaos.
The group is taking the issue to the state Appellate Court.
“No one ever said it would be easy,” resident James Tweed said in a statement. “What we do not have yet is a thorough analysis of applicable New Jersey statutes. … The proponents of unrestricted government spending won the first skirmish.”
The group collected enough signatures on a petition to get the issue on a referendum. The judge's ruling puts that referendum on hold indefinitely.
In its lawsuit, the city argued that it could not pay pensions, employee benefits or debt service under the spending cap. In his ruling, Visalli said the appropriate time for voters to exercise their discretion over city spending is on Election Day.
But north-end resident Fred Hoffman, one of the named defendants, said this is less effective in practice, especially if incumbents have the backing of the city's political financiers.
“We have an oligarchy in Ocean City. We really do,” he said. “We have a group of tycoons and real estate developers who say, ‘I know what's best for you.'”
The city's $52 million budget is 24 percent higher than it was just five years ago. Hoffman said city spending will put more pressure on officials to encourage high-rise development for an infusion of tax money. Wildwood is banking on high-rise development to offset taxes in that resort.
“How do we fund this? What I see is we'll just go higher and higher. We'll put more buildings down by the beach,” Hoffman said.
The group also wants a more elaborate judicial ruling on the concept of tying city spending to the cost of living. Bergen County's Bogota adheres to this measure.
“The ‘chaos' which the judge predicted would occur in Ocean City did not happen in Bogota,” Tweed said in a statement. “If his decision is allowed to stand unchallenged, then the taxpayers in Ocean City and across the state will never get the opportunity to test the validity of that fear.”
To e-mail Michael Miller at The Press: MMiller@pressofac.com