Two towns share similar budget concerns

Public hearings on the budgets are scheduled at the respective town meetings in May.

In fiscal year 2009, which begins July 1, less funding from the state and county will tighten Garrett Park’s budget compared to last year, but Kensington’s finances will not be affected.

Garrett Park expects $90,000 less in fiscal 2009. According to Councilman Hans Wegner, the town expects approximately $60,000 less in income tax and $30,000 less in revenue sharing with the state and county.

Because of that loss, Garrett Park officials voted on April 14 to increase the tax revenue. While the tax rate will remain the same as last year, 19 cents per $100 assessed property, the town will receive approximately $36,000 more because property values increase each year.

Overall, the Garrett Park income is projected to be $1.05 million instead of last year’s $1.4 million.

Kensington introduced a budget at last week’s town meeting similar to its $1.5 million budget from last year.

Taxpayers will pay the same amount in fiscal 2009 as they did this current fiscal year, which ends June 30. The Town Council voted unanimously on April 7 to lower the tax rate to 13 cents per assessed property value.

The tax rate for Kensington residents is currently 13.9 cents per assessed property value. In order for the town to receive at least the same revenue — $541,809 — this year, it will apply the lesser rate of 13 cents per assessed property value. That rate is known as the constant yield rate.

If taxes remained at 13.9 cents, staff estimated the town would see an additional $37,000, which isn’t needed, according to Mayor Peter Fosselman.

The town expects to receive more funds in fiscal 2009 because additional residents means an additional $110,000 in shared income tax revenue with the state.

Both towns are focused on street repairs and maintenance in fiscal 2009.

Sanford Daily, Kensington town manager, said the town plans to spend $265,000 on street repairs and extensive reconstruction to streets like Carroll Place, Frederick Avenue and Howard Avenue that are in need of pothole and crack repairs.

‘‘There was a study done years ago,” he said. ‘‘This year, it looks like we’ll start the work.”

Garrett Park estimated spending $200,000 on repairing roads and sidewalks and storm water management in fiscal 2009. There will be a balance of $163,000 in the capital improvements budget to save for future repairs.

Work began in March on some roads like Albemarle, Clyde and Montrose avenues that were stripped to the foundation and paved smooth, making them functioning, crack-free roads. As needed, the roads will be improved with top coats of asphalt.

The initial work would focus on the worst parts of different roads, according to Edwin ‘‘Ted” Pratt Jr., town administrator.

Kensington also expects to carry over $700,000 for the Konterra cement plant parking lot project. Konterra and the county are in the process of arranging a land swap where the county receives the Kensington property on Metropolitan Avenue in exchange for a similar parcel of land in Rockville. Kensington received money from Konterra to build an environmentally friendly parking lot on the site, but must wait for the land swap to be final before moving forward.

Garrett Park also hopes to finalize a storm water management redesign on Cambria Park as well as build a better sidewalk for the adjacent town pool.