PUBLIC HEARING SCHEDULED for JUNE 5, 2012
Mount Rainier is nearing the completion of its budget. Major
decisions are being made:
1. About
raising or not raising taxes based on the constant yield rate* which has been
set at 0.79 cent per $100 of assessment on real property (your
home/residence).
2. Cutting
one position from Code Enforcement or retaining all three Code Enforcement officers
3. Retain
the same level of services, and
4. Using
$21,000 from the reserves to balance the budget.
* Constant Yield Tax Rate (CYTR):
The property tax rate that when applied to new assessments
would
result in the taxing authorities receiving the same revenue in the coming tax
year that was
received
in the prior tax year. The Department is required to certify the CYTR each year
and local governments
are required to hold a public hearing if the new tax rate exceeds the CYTR. The Constant Yield
Tax Rate is State Law.
As you may be
aware, a public hearing has been held on the budget as required by our Charter.
At that time, the Council was not in favor of raising taxes, but was
still in the midst of decision making. Based on information provided to
the Council in recent weeks, and the fact that the City has been using its
reserves to balance the budget, at least three members of the Council wishes to
raise taxes to 0.81 cents per $100 of assessment on real property to keep the
City's current level of funding.
Raising the tax
base from 0.79 to 0.81 (.02 cents per $100) will generate approximately
$38,000, not enough to close the deficit (to close the deficit, the
City would need to raise taxes .05 cents per $100). Because it does NOT EXCEED the current/past CYTR, the City is NOT required to hold a hearing. However, to keep our residents informed and to get their input, a hearing will be held on June 5, 2012.
It is my belief
that the City should be considering a freeze on any new purchases such as
computers, printers, cars (vehicles), copiers, etc. I also believe that
the City should freeze salaries (raises, merits, COLAs etc.) for the next
fiscal year to stop the bleeding. The City's salaries are going up
annually. They grow at the annual rate established by the cost of living
rate which varies yearly, but is usually around 3%,
Another option that
has not been discussed and/or considered is furloughing staff.
The State, County and DC government are furloughing staff, and Mount
Rainier should also consider such measures.
Overtime, could be
reduced and/or cut. This is another area of the budget that has caused
some of the over expenditure in our budget, and it continues to grow.
Benefits,
especially health care and the pension fund continues to eat away at the City's
budget at an alarming rate. In many small municipalities these amenities
do not exist, and those that do the employee share of the cost is much greater
than that of employees of Mount Rainier, and even if they are equal, many of
the municipalities have more expendable revenue.
You can be a part
of this discussion. A public hearing is scheduled for TUESDAY, JUNE 5 at Mount Rainier City Hall at 7:00pm. Can't make it? Send an email to mayormiles@gmail.com
or to the City Manager jwallace@mountrainiermd.org voicing your
opinions, concerns, and suggestions regarding the budget.
