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.