Letter from Jim: Rising taxes, rising spending—time to ask better questions
Dear Friends, Neighbors, and Supporters,
Next week, City Council will introduce the 2026 budget presented by Mayor Gillian. Fiscal stewardship is an important role for Council members, as they are responsible for reviewing, revising, and adopting Ocean’s City annual budget, authorizing debt, and levying taxes.
At our recent Town Hall, the mayor stated that he works to present the “best possible budget” and that Council members are expected to simply sign off on his proposal. He’s also noted that Council has agreed with him “98% of the time.”
In my view, this is not a sign of a healthy governing process. City Council is not meant to be a rubber stamp. It is meant to provide oversight, ask difficult questions, and ensure that decisions are made transparently and in the long-term interest of our community.
That requires both independence and the willingness to engage constructively. Pushing back when necessary does not mean being adversarial or negative. It means doing the job responsibly, respectfully, and with a clear focus on accountability.
And this year’s proposed budget raises important questions that deserve scrutiny.
What the Budget Is Telling Us
Over the past four years, Ocean City’s tax rate has increased by 22%. During that same period, overall spending has increased by 32%, outpacing inflation. And even though our city’s ratable tax base has skyrocketed, we are increasing spending more than the revenues generated from higher property values.
Residents are asking a reasonable question: why are taxes increasing at this pace?
A major driver is debt. Debt service now accounts for more than 21% of total city spending. More than one out of every five dollars we spend is going toward obligations already incurred. That limits flexibility, increases long-term risk, and raises important questions about how and when we take on new debt. And this directly impacts affordability, long-term planning, and the quality of services residents receive.
The Questions That Need Answers
At our upcoming Council meeting, Council should be addressing the following questions:
What specifically is driving the year-over-year increase in spending, and where can we realistically slow that growth?
How are we evaluating new borrowing in the context of our already elevated debt service levels?
What is our long-term plan to manage spending?
Where can we improve transparency so residents clearly understand how decisions are being made and can track progress more regularly?
Why Experience Matters & What I Will Do on Council
Effective oversight requires more than good intentions. It requires financial literacy, discipline, and the confidence to challenge assumptions when necessary.
Over the course of my career, I have spent more than four decades working in finance, development, and with complex community budgets where disciplined analysis has been essential. I understand how to evaluate financial reports, ask the right questions, and ensure that decisions are grounded in facts.
When elected, I will bring the expertise and leadership required to secure the city’s financial stability and vitality. A few of the specific steps I would take include:
Forming a standing Finance Committee to provide in-depth review of budget proposals and financial reports, advising the full Council, and supporting the Finance Department.
Implementing quarterly financial reporting to enhance budget monitoring, improve decision-making, and increase transparency.
Requiring independent reviews of long-term fiscal impacts before major borrowing, redevelopment agreements, or other long-term financial commitments are approved.
Benchmarking Ocean City against similar shore communities to identify opportunities for improvement.
Ocean City deserves that level of rigor.
We all want a City government that works collaboratively. But collaboration should never come at the expense of oversight. The goal is not conflict. The goal is better decisions.
I will continue to monitor the City’s annual budget process and be fully prepared to serve Ocean City as its New Voice on City Council.
How You Can Help
Thank you for your continued engagement and encouragement. I’m so grateful to people who continue to ask how they can help my campaign. Here are some options:
Donate! Campaigns aren’t cheap, and I’m not being backed by any of the city’s traditional power brokers. Contributions of any size are appreciated.
Request and display a Kelly for Council lawn sign! They can now be proudly displayed in windows, on lawns, in cars etc.
Forward this email to friends and neighbors & suggest they sign up for future emails.
Engage with us on Social Media! Follow, Share, and Comment on the Kelly for Council Facebook and Instagram posts.
Consider volunteering (we could use help distributing flyers and handing out lawn signs!)
Make a plan to vote on May 12 and ask others if they need a ride or want to carpool, particularly those who may have more limited mobility.
I remain humbled by and grateful for your support.
Yours,
Jim
jim@kellyforcouncil.com