Avalon Introduces $36.5M Budget for 2025 With No Tax Hike

AVALON, N.J. — The Borough Council has rolled out a $36.5 million municipal budget for 2025, paired with a $9 million Water and Sewer Utility budget and a $2.2 million Beach Utility budget. The general budget keeps the local purpose tax rate steady at $0.206, avoiding any increase. It taps $719,869 from expiring tax levy cap bank funds and pulls $3.9 million from the general fund surplus, which stood at $7.1 million on Dec. 31, 2024. That surplus use accounts for 55% of the available balance. Unlike most Cape May County towns, Avalon funds its own library, not relying on the county system. The 2025 budget, introduced March 12, sets aside $5.8 million in library tax revenue, as required by state law. After library needs, $2.5 million flows back into the general operating budget. The municipal tax levy, minus the library portion, hits $20.7 million. With limited user fees—no paid parking here—the borough leans heavily on taxes, pulling in $30 million from municipal taxes, library funds and surplus to cover most of the $36.5 million budget. Other revenue, like $1.9 million from permits and licenses, plus state aid and grants, fills the gap. The budget stays debt-free, boasting an AAA bond rating. It allocates $16.7 million for capped expenses, including $8 million for salaries and $2.6 million for pensions. Capital projects get $656,000, beach efforts $800,000 and recreation $436,000. The $9 million Water and Sewer budget, mostly fee-funded, contracts operations to Middlesex Water, while the $2.2 million Beach Utility runs a $500,000 deficit, offset by taxes to keep beach tag fees low.