Mayor trying to stem spending

Holtzinger was scheduled to present his budget to the city’s aldermen in a workshop session on Wednesday, after The Gazette’s deadline.

‘‘I think the budget represents a good overall balance of new programs and at the same time, we were mindful of how hard things are right now with increases in the cost of fuel, state property taxes and state sales taxes,” Holtzinger said.

Holtzinger is proposing a two-cent reduction in the property tax rate, dropping from its current rate of 67 cents per $100 of assessed value to 65 cents. The city saw a property tax increase of $3.3 million from last year, according to the mayor.

The mayor's proposed tax rate is above the constant yield rate of 61.6 cents, set by the state as the amount the city would need to charge to collect the same amount in property taxes next year as it did this year.

Holtzinger said that this increase allowed the reduction, which he is quick not to call a ‘‘tax cut,” given increases in state assessments city residents are facing.

‘‘I see [the reduction] as a slow, methodical cut in our rate and at the same time, discipline for us in how we are spending taxpayer dollars,” he said. ‘‘We’ve got to be mindful about that, and I think we are.”

The city will not raise its water and sewer rates as expected, a ‘‘pleasant surprise,” the mayor said, given the level of work the city is doing to upgrade its water system and maintain leaks of treated water.

Holtzinger was not as optimistic that an increase would not come in fiscal 2010.

There will be a rise in stormwater rates, the third in three years, as part of a long-term city plan. The mayor is proposing a 20 percent increase to help the city process water, mostly from rain that leaks into the sewer system.

Holtzinger’s budget also addresses several issues brought up during last year’s budget, including 19 new positions, notably two for code enforcement and five for city police.

New programs include using $2.1 million from the city’s general fund, or savings account, to begin a fleet rehabilitation program for police and public work vehicles, and the possibility of a senior citizen property tax credit program the aldermen will discuss next month.

The tax credit was brought up last year by Aldermen Alan E. Imhoff (R) and David ‘‘Kip” Koontz (D), but could not be organized in time for the current budget year.

The mayor has also set aside $100,000 toward a housing grant program under investigation by the city for a number of years.

Alderman Donna Kuzemchak (D) has presented each alderman and the mayor with an outline of the program, titled ‘‘Call Frederick City Home.” The goal of the program is to help reward the commitment of public safety and school employees by helping them live where they work.

proposed budget

Frederick Mayor W. Jeff Holtzinger (R) is proposing an $83 million budget to include:

* Property tax rate of 65 cents per $100 of assessed value; decrease of two cents from current rate

* A 3.5 percent cost of living increase for city employees

* No increase in water or sewer fees; 20 percent stormwater fee increase

* $10 per month, $1 per hour raise in parking fees

* $30,000 each for alley program and green building initiatives

* $100,000 toward new workforce housing initiative

City departments will present their budgets throughout April. The aldermen are scheduled to finalize the budget by May 22.