Commissioners
consider raising
property, water and sewer taxes
By James Rada Jr.
News Editor
THURMONT,
Md. – Though the draft fiscal year 2008 budget for the
town of Thurmont can be balanced without raising taxes, the
commissioners may increase the rate to try and create a rainy
day fund for the town.
Mayor
Martin Burns who prepares the budget with input from town
staff worries that unforeseen costs could break the town’s
budget. One such possible budget breaker would be if the town
has to bear the entire costs of a $9 million lawsuit brought
against the town by residents who had their basements flooded
with sewage in 2003.
“After
being in court for the week, I do not deem it appropriate
that we cripple ourselves in how we run the town,” Burns
said.
The
draft budget shows just over $3 million in revenues and just
over $2.9 million in expenditures. That leaves the town with
a $71,950 cushion that Burns wants to see increase to over
$100,000.
To accomplish
this, Burns suggested advertising the possibility that the
town was going to increase the rate to 30 cents per $100 of
assessed value or a 3.5-cent increase. Advertising a possible
30 cent rate for the public hearing does not mean the commissioners
would increase the rate to that amount, but it would serve
as the maximum amount that the rate could be raised this year.
Each one cent increase in the tax rate raises an additional
$46,888 for the town.
Burns
told the commissioners that the key question was, “Do
we want to go with a shoestring budget this year?”
The
commissioners decided they would advertise a possibility that
the rate could be increased to 28 cents.
Though
residents have seen substantial rate increases in their electric
rates this past year, the electric utility budget is just
about breaking even. The draft budget shows a $24,050 surplus
in an $8.9 million budget.
The
town has a $2.4 million general operating budget that has
an $81,917 surplus projected.
The
sewer and water budgets aren’t as lucky. Both budgets
show a projected deficit for next year on both the operating
and capital sides.
The
sewer budget shows a $46,400 deficit in part because the town
is beginning to pay on its $1.6 million loan for the first
phase of sewer repairs and Burns wants to fund the engineering
for the second phase. The capital budget shows a $1.2-million
deficit. Together, it would take a $2-$3 rate increase to
balance the sewer budget.
“We
fund the next phase in advance now so next year when it’s
time for grants, we’re funded and ready to go,”
Burns said.
The
water budget projects a $67,700 deficit on the operating side
and a $317,324 deficit on the capital side. A $2.60 to $3
rate increase would be needed to balance the water budget.
While
cautioning he was not promoting large-scale growth, Burns
said, “A little bit of moderate growth brings in a tremendous
amount of revenues. … What you’re seeing (in the
budget) is the negative impact of little growth.”
