Stone Harbor looks at shared services (2024)

STONE HARBOR — A few descriptive phrases may come to mind during a drive along 1st Avenue or a visit to the shops on 96th Street.

“Tony” seems to be a favorite of features and travel writers, and with the average property value north of $2 million, it’s easy to see why.

The local Chamber of Commerce seems to like “family friendly,” while others might emphasize the seaside small town vibe.

But “budget shortfall?” That may not immediately come to mind.

Still, the small borough with an $8 billion equalized ratable base is looking at a $103,000 hole in next year’s budget, and no easy way to fill it, according to a presentation at the August Borough Council workshop meeting.

At the same time, council members and a room full of residents heard from the state Department of Community Affairs’ Richard Richardella about the potential benefits of regionalization and shared services.

He’s the chief of the Local Assistance Bureau, and discussed a push by Gov. Phil Murphy to consolidate government services, which could include a financial boost from the state of up to $400,000 to help kickstart any consolidation effort.

It's not that Stone Harbor is broke. Earlier in the meeting, auditor Michael Garcia with the firm Ford, Scott and Associates went over the municipal audit, explaining the situation.

There are two state-imposed limits on municipal budget increases, one on the amount by which taxes can be hiked compared to the year before, another on spending increases. The other limits how much spending can increase.

“The problem is not related to the ability to raise revenue. It’s imposed by the spending cap,” Garcia said.

The borough could increase the tax rate by enough to bring in $1.48 million more for 2025, he said. But the spending limits would only allow an increase of a little over $83,000. The borough can bring in the money, but won’t be allowed to spend it on most municipal operations.

If costs increase at about the same rate as they did last year, that will lead to the budget shortfall, even as the total assessed value of the borough continues to climb. That could force cuts to local services.

Trouble is, Stone Harbor likes its local services.

For instance, Richardella suggested trash collection with a mechanical arm could be a more efficient option, but heard at the meeting that residents and visitors like to have the trash and recycling containers collected rather than people having to place them at the curb each collection day.

“You’re here today because we don’t want to cut services in Stone Harbor,” said Council member Jennifer Gensemer. “We want to keep the level of services that we have for our taxpayers.”

Council member Bunny Parzych asked Richardella about ways to close the budget shortfall.

“We’ll do our best to find some cost savings for you,” Richardella said. But he added that it was only his second hour in the community. Also, the recommendations would need support before any savings.

“The community has to want to do this,” he said. “They have to have the political will and the courage to want to do a shared service.”

Richardella said the borough department heads could provide his team with operational details and in the coming months, they would prepare a report showing the potential areas where shared services or consolidation could be cheaper, more efficient and possibly even more effective. He said at the meeting that the process has saved millions of dollars in other communities, including in Cape May Point and West Cape May, including a shared purchase of a street sweeper.

The idea is not new, and has worked elsewhere in New Jersey and in Cape May County.

In a rare example of consolidation, Cape May Point contracted with West Cape May for police services in 1986, and in 2002, West Cape May dissolved its police department, looking to Cape May Police to serve all three communities.

Richardella mentioned the potential of sharing police, EMS or public works with neighboring communities, including Avalon, with which Stone Harbor shares a barrier island. There is already close cooperation between the communities, including between the school districts, but there were also signs of reluctance to go too far on consolidation.

Councilman Tim Carney said there is a precarious financial situation in the borough.

“We have been deficit spending for close to a decade. And the bill is finally coming due,” he said. “There’s no sugar coating it.”

But he also said he did not want to see any cuts to municipal events or support for local organization, and especially did not want any elements of public safety controlled from outside of the community.

“I don’t support nor will I vote for any recommendation that considers outsourcing our citizen’s public safety needs,” he said. “I will not support nor vote in favor of entering into a shared services agreement for fire, EMS, police or the beach patrol.”

Richardella said the DCA will come up with a report, including recommendations, but it will be up to Borough Council to decide which recommendations to enact, if any. He said it would not hurt their feelings if Stone Harbor decided not to pursue any changes.

“Whatever we write in our report is not mandatory for you to take up,” he said. “We’re going to present a group of options to the good citizens of Stone Harbor and the governing body is going to pick those options. They don’t have to pick any of them.”

He said the team would also work to protect the interests of current employees. But he added that inflation, the echoing impact of the pandemic and other factors present significant challenges to small governments.

“We’re trying to move Stone Harbor into the 21st century,” he said.

The borough has more than 20,000 summer residents, but its year-round population has dwindled steadily. The most recent census put the number of year-round residents under 800. Mayor Judith Davies-Dunhour suggested the evaluation process should be done in as public a manor as possible, including offering a chance for public input.

“Knowing our people here in Stone Harbor, and I think everybody up on the dais will agree with me, they like to be a part of things,” she said. “Our people like to be a part of the decision-making process and it will make them uncomfortable if it appears that they’re not.”