No Property Tax Increase in City Budget Proposal

Despite what City Manager David Deutsch described as “severe revenue constraints,” city property taxes will not increase if the City Council approves the draft fiscal year 2012 budget.

For the first time in three decades, the city has seen a reduction in its tax base because of lower property values and the effects of the recession. But the city property tax rate will remain unchanged from last year at 40 cents per $100 of assessed value in the proposed budget.

Water and sewer rates in the city will increase by about 3 percent, or about $3.68 quarterly for the average household.

“Make no mistake, although the city has done well in the past and is positioned to navigate our challenges, this is going to be a difficult time for all of us,” said Mayor G. Frederick Robinson. 

Property assessments in the Bowie area fell, on average, by more than a third from the 2008 figures—the last time the state conducted an assessment—resulting in a $1.9 million reduction in property tax revenue.   

An increase in vacant office space in Bowie along with a slowdown in new home construction—only 11 single family building permits were issued in 2010, as compared with 169 a decade ago—translates into fewer dollars coming in and tough choices for city officials.

“The operative words for this budget are frugal, cautious, and conservative,” Robinson said.

The City Council, which began its review Monday of the proposed $40 million general fund budget, will consider putting off more than a half-dozen projects totaling nearly $1.2 million and trimming costs in other ways such as scaling back on summer help in the parks/grounds and streets divisions.

Under the draft budget, no full-time staff will be laid off but an open full-time position will remain vacant. An additional two police officers will be hired, bringing the number of sworn officers to 54.

Speed camera revenues for the upcoming budget year are projected to be nearly $1.4 million. But those revenues are expected to decline over time. The number of violations drops off after drivers become aware of the cameras and slow down, according to Deutsch. Speed cameras funds must be used for public safety.

The city may start charging a fee for counseling services in the Youth Services bureau—a $20 fee for city residents and a $30 fee for non-residents is proposed. This fee will generate an estimated $27,000 in revenue.

While funds are budgeted in the 2012 budget for an artificial turf field at Whitemarsh Park, the cost of environmental studies—estimated to be as high as $174,000— may set the $1.1 million project back, according to Deutsch. Describing them as “regulatory hurdles,” Deutsch said the city will investigate whether the studies are necessary. The installation of the field would take place in 2013.

Councilman Isaac Trouth asked the City Council to consider moving up a $340,000 parking lot expansion project in the Church Road Park to the current 2012 budget. In the proposed budget, the project was deferred to 2015.

“I’ve got to tell you in all candor, I’m not sure where I’m going to be on this, but you will get an up or down vote,” Robinson responded.

Councilman Todd Turner asked if the more than $650,000 in the 2012 budget to replace the heating and air-conditioning system at the Belair Mansion could be put off.

Deutsch said the historic building was deteriorating because of the inability to maintain a constant temperature inside.

The council—including Turner—voted in March to approve a $75,000 contract for project engineering.

Robinson and Councilman Dennis Brady expressed support for moving forward with the repairs.

“It’s a significant and historical piece of property and we need to ensure it’s maintained as far as its integrity is concerned and the cost, I think, is a very minor amount,” said Brady.

The City Council will reconvene for a public hearing on the budget on Tuesday, April 19.