2005 BUDGET

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Taxpayer Rally
2008

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Agenda<= /span>

•<= /span>Overview of 2008 Reval

•<= /span>Overview of 2008 Budget

•<= /span>Legacy Cost

• = ; &n= bsp; Healthcare

• = ; &n= bsp; Pension – Police & Fire

•<= /span>Capital Expenditures

•<= /span>Ocean City School Budget

•<= /span>Public question & comments <= /div>

• = ;

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Ocean City Revaluation

•2008 Ratable Base 12.75 Billion

• 2007 Ratable Base 8.5 Billion = ;

• Change in value 4.5 Billion

• % of change 54.55%

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Ocean City Revaluation

•Revaluation reflects O= cean City’s ratable value as of October 1, 2007.

• 40% of the Ocean City’s Prop= erties went up in value.

• 20% of the Ocean City’s Prop= erties will stay same.

• 40% of the Ocean City’s Prop= erties went down in value.

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Ocean City Revaluation

•<= /span>If your property went up 54.55%= or less you will your taxes will remain the same or less.

•<= /span>Taxes based on the equalization rate of .065 versus the 1.00 2007 rate.

•<= /span>The city, county and school request the exact same tax levy awaits= as in 2007.

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Ocean City Revaluation

•= Ocean City real estate valu= es are currently depreciating .

•<= /span> If Ocean City had booked the Reval= on 10/1/2006 the equalization would have been 14 Billion dollars

•<= /span> Ocean City lost 1.25 Billion in va= lue in the past year down 9%.

•<= /span>Ocean City properties are depreciating ¾% a month versus appreciating 2% a month during the recent housing boom <= /div>

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Ocean City Revaluation

•<= /span>The 12.75 billion represents a mean housing value of 660 thousand dollars

•117 housing units were sold sales during the fourth quarter, of 2007= , at average sale price of $641,000.

•<= /span>126 housing units were sold sales during the two months , of 200= 8, at average sale price of $627,000.

•<= /span>There are approximately 1800 houses for sale in Ocean City. That represen= ts a sales inventory of over 2 years.

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Ocean City Revaluation

• Reval appeals must be filed by May 1,2008

•Form from County reval

•Reference website for sales comps

•<= /span>

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4% PROPERTY TAX LEVY
IS NOT REALLY 4% U= NTIL 2010

•The following is the maximum percent of increase allowed with exclusions and waivers.

• Year Percent 2008 10.2%

• = 2009 5.9%

• = 2010 4.2%

2008

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2007 & 2008 Budget Summary

+10.53 %

4,027,175

+5.25 %

2,998,025

Rev. 2008

3/13/08

+12.25%

4,683,697

+7.02 %

4,007,411

Intro. 2008

1/17/08

+7.94%

3,115,776

+6.62 %

2,812,948

Actual

2007

% Change

Taxation

% change

Spending

Date

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2008 BU= DGET SUMMARY

15%

$533,122

$3,554,145

$4,087,267

LIBRARY=

55.72%

$1,045,316

$1,876,009

$2,921,326

PENSION=

21.86%

$1,130,000

$5,006,200

$6,019,200

HEALTH INSURANCE

23.45%

$285,000

$1,215,000

$1,500,000

FICA Rev. 3/13/08

-2.1%

-$53,767

$25,369,750

<= span style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro= man"; mso-bidi-font-family:Arial;font-size:71%'>$25,315,983

S&W Rev. 3/13/08

35.8%

$435,000

$1,215,000

$1,650,000

FICA In= tro 1/17/08

2.44%

$618,950

$25,369,750

$25,988,700

S&W= Intro 1/17/08

% DIFF

$ DIFF

2007

2008

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MAYOR PERILLO’S
% INCREASE SINCE 20= 07 & 2008
AS OF 3/13/08

5.60%

13.76%

18.47%

TOTAL

2.30%

5.25%

10.53%

2008

3.30%

8.51%

7.94%

2007

S.S. COLA

SPENDING

TAXATION

YEAR

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Legacy Cost

The cost of retiree healthcare, pension, insurance and other benefits to an employer.

• Healthcare

• Pensions

------=_NextPart_01C89010.92897EA0 Content-Location: file:///C:/48F7E9D5/2008TaxRally-5_files/slide0083.htm Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii" 2005 BUDGET

Current Trend of Healthcare Cost

$92,032

$35,482

$23,136

$15,434

2028

2018

2013

2008

Average - Hea= lthcare Cost For Active & Retired Employee @ 10% per year

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Current Trend of Healthcare Cost

Yearly - Heal= thcare Cost for Active & Retired Employee @ 10% per year

$40,494,168

$15,612,255

$9,693,982

$6,019,200

2028

2018

2013

2008

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Current= Trend of Healthcare Cost

$379,224,645

$105,523,601

$40,422,600

$6,019,200

2009-2028

20 year period

2009-2018

10 year period

2009-2013

5 year period

2008

C= urrent year

Cumulative - = Healthcare Cost For Active & Retired Employee @10% per period

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Current Trend of Healthcare Cost

$116,913,649

&#= 13;

$30,414,953&#= 13;

$10,603,806

&#= 13;

$1,351,246

2009-2028

20 YEAR

2009-2018

10 YEAR

2009-2013

5 YEAR

2008

Cumulative - Healthcare Cost for ALL Retired Employees = @10% per period

POLICE & FIRE <= /span>Retired Employee @10= % per period

2009-2028

20 YEAR

2009-2018

10 YEAR

2009-2013

5 YEAR

2008

<= span style=3D'mso-hansi-font-family:"Times New Roman";font-size:71%'>$82,421,066

<= span style=3D'mso-hansi-font-family:"Times New Roman";font-size:71%'>$20,636,283

<= span style=3D'mso-hansi-font-family:"Times New Roman";font-size:71%'>$6,742,487

$810,748

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Pensions

THE FOLLOWING TABLE PROVIDES THE COST PER EMPLOYEE.&nbs= p; THE TOTAL POLICE & FIREMEN’S RETIRE= MENT SYSTEM CONTRIBUTION FOR 2008 WILL BE $639,755,622

$125,499 per active employee. =

&#= 13;

Unfunded Liability for the PFRS is $5,625,453,619

&#= 13;

$1,837 per active employee *

Local Government

PERS:

$4,927.30 per active employee

&#= 13;

State Government

PERS (Public Employees Retirement System)

$8,357 per employee

&#= 13;

TPAF (Teachers Pension & Annuity Fund)

$17,716 per employee

&#= 13;

PFRS (Police & Firemen’s Retirement System)

COST PER EMPLOYEE

SYSTEM=

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Fire Assessment

Response time -

<= span style=3D'position:absolute;top:34.75%;left:11.23%;width:96.44%;height:4.0%= '>ØNFPA 1710 recommends a 5-minute dispatch-to-arrival response time to be met <= /span>90 percent = of the time on fire and basic life support (BLS) calls. This 5-minute period incl= udes 1 minute for turnout and 4 minutes for travel.

<= span style=3D'position:absolute;top:50.74%;left:11.23%;width:85.2%;height:4.0%'= >ØThe 90% fac= tor was reported in Tri Data assessment for Louisville KY (November 2= 005) but not reported in the Ocean City assessment

<= span style=3D'position:absolute;top:62.74%;left:11.23%;width:98.31%;height:4.0%= '>ØResponse ti= me is one of the most common performance measures used by the fire service bec= ause it is understood by citizens, easy to compute, and useful in the evaluation = of end results.

<= span style=3D'position:absolute;top:78.75%;left:11.23%;width:85.2%;height:4.0%'= >ØResponse ti= me can also be broken down into four major segments: call processing/= dispatch, turnout, travel, and “vertical” response. Different goals can = be set for = each component of response time as well as total response time.

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FIRE ASSESSMENT
MORE EMPHASIS NEEDED ON Sprinkler Protection

<= span style=3D'position:absolute;top:47.75%;left:9.36%;width:103.93%;height:5.25= %'>1.3 Equivalency. Nothing in this standard is inten= ded to prohibit the use of systems, methods, or approaches of equivalent or superior performance to t= hose prescribed in this standard. Technical documentation s= hall be submitted to the Authority Having Jurisdiction to demonstrate equivalency

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Fire Assessment

<= span style=3D'mso-special-format:bullet;position:absolute;left:-3.29%;font-fami= ly: Wingdings'>ØAverage Speed of fire apparatus

<= /div>

<= span style=3D'position:absolute;top:40.75%;left:14.6%;width:96.06%;height:5.25%= '>•<= /span> Tri Data uses 15 mph, 20 mph= and 25 mph in determining response time

<= span style=3D'position:absolute;top:51.24%;left:14.6%;width:87.82%;height:5.25%= '>•<= /span> Insurance Service Office and= Rand Corporation after exhaustive research determined that the average fire apparatus speed should be 35 mph

<= /div>

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Fire Assessment

ØFire Fighters per thousand population

<= span style=3D'position:absolute;top:42.5%;left:14.23%;width:92.69%;height:6.0%'= > Tri Data report states the national benchmark of 1.5 fire fighters per thousand

<= span style=3D'position:absolute;top:61.25%;left:14.23%;width:85.95%;height:6.0%= '> Ocean City currently has 4+ fire fighters per thousand

<= /div>

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Fire

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jE6ajdcUfDsJJYQCr0yErNJImOA2bebYpZ7hlFVpr3YYI+sIDTvJjYjZEvE4j+ySsJtAj0DYEvl4 cBLJjy/pj7hQnqeyFp4gmP0kkKk1sQY3kwe7Xq5EopjSkBclkzUZsiK5kS77sjAbszLrsjCpjx9p ki5pkzUrsSqLsxSrszsbkT0LQ7IrO1MiW1Ijh1JHO5DcpCtBK7Q3S7Q+y3BLG7VDu48sW7FPy5JJ a1JVm6xN+7XXIrbtOlMnaZMzm7Zqu7Zs27bMEggAOw== ------=_NextPart_01C89010.92897EA0 Content-Location: file:///C:/48F7E9D5/2008TaxRally-5_files/slide0109.htm Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii" 2005 BUDGET

POLICE ASSESSMENT

•<= /span>The Patriot Consulting Group states that Ocean Cit= y has an off season ratio of 4.4 officers per thousand population which is consistent with ratios in simi= lar jurisdictions.

•<= /span>Licensed establishment for selling alcohol.

------=_NextPart_01C89010.92897EA0 Content-Location: file:///C:/48F7E9D5/2008TaxRally-5_files/slide0119.htm Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii" 2005 BUDGET

Police

1.62

127=

SUBURBAN

&#= 13;

26.4

78,474

2006

BRICK TWP

2.88

37<= /div>

SUBURBAN

&#= 13;

6.39

12,861=

2006

BRIGANTINE

0.00

RURAL

&#= 13;

65.7

11,696=

2006

UPPER TWP

0.97

107=

SUBURBAN

&#= 13;

110,000

2006

<= span style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro= man"; mso-bidi-font-family:Arial;mso-hansi-font-family:"Times New Roman";font-si= ze: 57%'>OCEAN CITY SUMMER

4.04

62<= /div>

SUBURBAN

&#= 13;

15,330=

2006

= OCEAN CITY WINTER

3.07

51<= /div>

RURAL CTR

&#= 13;

72.4

16,619=

2006

MIDDLE TWP

2.10

45<= /div>

SUBURBAN

&#= 13;

27.8

21,442

2006

LOWER TWP

<= span style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro= man"; mso-bidi-font-family:Arial;mso-hansi-font-family:"Times New Roman";font-si= ze: 57%'>Police per

<= span style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro= man"; mso-bidi-font-family:Arial;mso-hansi-font-family:"Times New Roman";font-si= ze: 57%'>1,000

Pop.

&#= 13;

Total

Police

Officers

Character

&#= 13;

<= span style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro= man"; mso-bidi-font-family:Arial;mso-hansi-font-family:"Times New Roman";font-si= ze: 57%'>Area in

Square

<= span style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro= man"; mso-bidi-font-family:Arial;mso-hansi-font-family:"Times New Roman";font-si= ze: 57%'>Mile

2005

Estimated

Population

YEAR

MUNICIPALITY

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Police

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