OCEAN CITY – With a petition effort underway, Ocean City officials tried to clear the air and address what they believe is misinformation being presented to property owners.
Ocean City Taxpayers for Social Justice spokesman Tony Christ came before the Mayor and City Council on Monday evening, presenting hand drawn charts reflecting downward sloping property values and upward sloping property taxes. According to Christ, he pulled the information from the Town of Ocean City’s Comprehensive Annual Financial Plan (CAFR) for the fiscal year ending June 30, 2013.
Christ’s charts showed an increasing property tax rate from 2009 when it was set at 38 cents per $100 of assessed valuation compared to 2014 where it is set to 47.04 cents, as well the decreasing property tax revenues between 2009 and 2013.
Christ pointed out where the last election took place on the chart.
“So you can see how the characters [Mayor and City Council] up here have performed for two years under the guidance of Mr. Recor,” Christ said. “The rise in taxes has almost been equal to the decline in property values. What will next year bring? Let me predict it. We will have another year of declining property values.”
Christ added there are currently 90 properties for sale in the Ocean City neighborhood of Montego Bay.
“Having knocked on almost every door in Montego Bay unsolicited fully 50 percent of the people have told me that they want to move due to cost. This isn’t rocket science,” he said.
Christ confirmed a current petition effort is attempting to lower the tax rate to the 2009 rate of 38 cents.
“I understand this requires government to cut off an arm … but what we want to do is take taxes back down to the ‘09 level … property values will go up and in two or three years revenues will be obtained with a vibrant economy instead of by killing the economy, which is what this group has done. Margaret [Councilwoman Pillas] and Brent [Councilman Ashley] have not voted for tax increases, so that leaves the other five and his highness the mayor,” Christ said.
As City Manager David Recor began to respond, Christ exited the room. Christ’s mispronunciation of his name was a metaphor for what he believes, Recor stated, as the information he presented is incorrect. Recor asked Finance Director Martha Bennett to come forward to correct the record based on current data.
Bennett had the most recent CAFR in hand as she approached the podium. In 2009, the town collected close to $47.9 million in property taxes compared to 2013 when the town collected almost $42 million, which is almost a $5 million decrease in what the town billed the taxpayers of Ocean City.
Bennett also reviewed in 2010 the town collected about $43.8 million in property taxes, in 2011 about $42.7 million and in 2012 almost $42.6 million.
“In 2013, you did not raise taxes, in fact they were lower. We took extra room taxes during those years because we never saw declining room taxes during the recession. That increased from $11 million [2009] to $13 million [2013], and we were able to balance our budget with other sources and fees but property taxes that we billed the property owners in Ocean City is less in 2014 and 2015 then it was in 2009,” Bennett said. “The rate went up but the rate is not what you’re billed. The dollar amount on the tax bill is what your billed.”
Council President Lloyd Martin recalled in 2009 when Councilman Dennis Dare, who was then city manager, started making cost saving measures, what he referred to as “cutting the low hanging fruit.”
“The town has cut down on the number of employees that we have and made a number of changes as we move forward trying to keep down the amount of money that we tax people,” Martin said. “At the same time, from 2009 until now, we have been able to make a number of improvements in the Town of Ocean City. We have a new beach patrol building coming, we have a new fire house, and we are putting $2 million in street improvements. We are doing things in this town while collecting less tax money as we move forward, so the way I look at it we are working smarter and getting things done. This council has done a great job.”
Mayor Rick Meehan stated Christ’s demeaning behavior exemplifies his perspective.
“He only gives us half of the information while he stands up here with his crude drawings, and then he does not want to be blinded by the facts because as soon as the facts are stated by our finance director he leaves. What does that tell you?” the mayor said.
While Christ was making his presentation, the mayor took the time to visit the Multiple Listing Service (MLS) website for Worcester County, where it lists all of the available properties for sale in Ocean City.
According to Meehan, a Realtor, there are about 1,600 properties in Montego Bay. Currently, there are 58 listed for sale, which is 3.5 percent of the properties.
“That is below the average of any neighborhood or any community as far as average properties on the market for sale. Being in the real estate business, I can tell you, even more so in a community where many of the properties are second homes they turn over more frequently as people’s course of life change. In the past year, 41 properties have sold, which means almost the same number of properties have sold in a year period that is currently listed today. That shows this is a very viable community, and yes there are properties for sale but it certainly meets the test of an active real estate market,” the mayor said.
Meehan thanked Bennett for providing the correct information regarding property taxes decreasing over the years.
“Yes, we just like the rest of this country saw a big spike in real estate prices during a certain period of time. None of us throughout this nation thought it would fall to the bottom, but the property values in Ocean City are incrementally rising. They are not going to rise at the same rate in 2006 but they are beginning to move up and stabilizing,” he said. “Ocean City is healthy in many ways, and while there are many things that are brought up here I don’t want misinformation to become fact because that can be dangerous for all of us.”
Last week Christ published a newspaper advertisement announcing OC Taxpayers for Social Justice was holding a meeting at the Roland E. Powell Convention Center last week. The advertisement states “Get there early. Only 300 seats. All who signed the petition get seat preference. Next, voters. Finally, guests. This program is free.”
“I went there and I was denied entrance into that meeting. I was told by Mr. Christ … I could not come in the meeting because I refused to sign the petition. I don’t think it is a viable petition, so I chose not to sign it,” Mitrecic said. “Nowhere in this paper does it say you have to sign the petition to get into that room, as Mr. Christ indicated to me … my only thought why he did not want me in there was just as tonight, he did not want anybody there that could contradict his fabrications of numbers and facts.”
Mitrecic addressed those who have chosen to sign the petition.
“I want my tax rate to be 38 cents too, and I am sure the council that sits up here wants their tax rate to be 38 cents also. When you decide that you want it to be 38 cents, you also have to decide what you want taken away,” he said. “Do you want the streets cleaned in front of your house? Do you want the city to stop picking up your trash? Do you want clean water coming out of the tap? That is what it comes down too. We provide services with your tax dollars, and whatever services you don’t feel that you need any more than this council can bring that tax rate down.”