Mayor Small Unveils 2025 Budget with Continued Tax Reduction and Investor Confidence for Atlantic City

Six straight years of tax decreases reflect strong leadership, community investment, and growing economic momentum.

Atlantic City continues to chart a new path forward—one defined by fiscal responsibility, transparency, and a deep commitment to the people who call it home. This week, Mayor Marty Small Sr. announced the sixth consecutive municipal property tax decrease, part of a $258 million city budget that prioritizes both community needs and long-term financial strength.

The 3.4-cent tax rate cut in the 2025 budget follows years of strategic planning and disciplined budgeting under the Small administration, and is a clear reflection of the city’s core focus: putting residents first while ensuring Atlantic City is a place where families can thrive, businesses can grow, and investors can feel confident.

“This administration is keeping its promise by making the city’s taxpayers its number one priority,” Mayor Small shared during a news conference at City Hall. “Once again, Atlantic City is a leader when it comes to fiscal responsibility.”

Real Relief, Strategic Spending

The 2025 budget includes $258 million in municipal spending, and when including grant funds, totals nearly $280 million. The budget also includes a full payoff of the city’s debt service for the year—a move made possible by years of careful financial management.

According to Chief Financial Officer Toro Aboderin, the city now holds a $78 million surplus, $28 million of which will be used to fund the 2025 budget. The budget also allocates $27 million toward capital improvements, including street paving and building repairs—delivering visible, on-the-ground benefits to Atlantic City residents.

Perhaps even more remarkable: the city’s outstanding debt has dropped from $550 million in 2019 to $328 million today, showing how far the city has come since state oversight began under the 2016 Municipal Stabilization and Revitalization Act.

State Support Driving Down the Levy

One key piece of Atlantic City’s financial turnaround has been its access to Investment Alternative Taxes (IATs)—taxes collected from casino gaming revenues that are now used to help pay down municipal debt. In 2024, the city received over $68 million in IAT funding, thanks to reforms that redirected these revenues from the CRDA back into the city’s general operations.

As a result, Atlantic City’s tax levy has plummeted—from $128 million in 2015 to just $34 million today. Meanwhile, the tax collection rate has improved from roughly 95% in 2019 to 98.1% in 2025—a testament to growing public trust and consistent city leadership.

Credit Ratings and Investor Outlook on the Rise

This momentum has not gone unnoticed. In September, Moody’s Ratings upgraded the city’s long-term issuer rating to Ba2, while Standard & Poor’s raised its rating to BB+. Atlantic City is now just one step away from investment-grade status—a critical milestone that could unlock new funding opportunities and strengthen the city’s ability to attract developers and anchor institutions.

Mayor Small and his finance team, including Business Administrator Anthony Swan, Budget Officer Tom Monoghan, and partners from the Department of Community Affairs, say they are laser-focused on keeping the progress going.

“We’re continuously finding ways to get more money and make our financial situation better,” Small said. “With the plethora of development projects scheduled to come online next year, we’re going to be in a great place to have another tax decrease.”

Why It Matters

For residents, six years of steady tax relief means Atlantic City is becoming a more affordable place to live and raise a family. For businesses and entrepreneurs, it signals smart, stable governance and ongoing investment in infrastructure, safety, and growth. And for investors watching from afar, it’s another reason to believe in Atlantic City’s transformation.

From balancing budgets to backing bold development initiatives like Bader Field, Mayor Small’s administration is demonstrating what it means to lead with both fiscal discipline and a community-first vision.

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