Town’s proposed budget jumps 18 percent for next year

Officials look to refinance debt

The proposal for next year includes $605,000 worth of bond money for one-time projects and expenses, such as road work and a $100,000 state bond for South Branch Park.

The town’s general budget committee proposed the budget, which would take effect July 1. The council, which charged the committee with forming a budget, voted 4-0 to take the proposal to a public hearing at 7 p.m. May 12 at the Town House, 7547 Main St., Sykesville. Council members Debby Ellis and Eugene Johnson Sr. were absent.

Council members could vote on the budget immediately following the hearing, said Town Manager Matt Candland.

The council also proposed Monday to maintain the town’s tax rate of 33 cents per $100 of assessed value. Constant yield — the tax rate that allows property tax revenues to equal those of the previous tax year – is 29.9 cents per $100 of assessed value.

Maintaining the tax rate would add $107,867 in revenue for the next fiscal year, according to budget documents.

The proposed budget includes $60,000 for an additional Sykesville Police Department officer, a $9,000 Parks and Events Committee budget, and $65,000 for capital items for the Public Works Department.

Removed from the budget is $5,800 for printing the town’s calendar. The budget committee proposed putting the calendar online and printing a few copies to post in town buildings.

The proposal also assumes the town will refinance $558,000 of its debt and borrow $505,000 more.

‘‘We should be just about current with our road projects,” Candland said about borrowing $280,000 of the $505,000 for paving Obrecht Road, Braemar and Bunker Hill courts, Concord and Revere lanes and Maple and Oklahoma avenues.

The $505,000 loan would be from a private bank found through Virginia-based broker Davenport & Co, of which $280,000 would pay for road paving, $50,000 for a 60 kilowatt emergency generator for the police station, $40,000 for a Public Works equipment pavilion and $135,000 to pave a gravel parking lot behind Main Street.

As committee members sifted through the budget and looked for cuts, they said Sykesville needs to make more money in the future to keep from making difficult cuts.

Councilman Frank Robert Jr., who sat on the committee, proposed at Monday’s meeting forming a panel that would look at generating revenue.

Budget committee member Howard Saslow, who came up with the idea, said he thinks town supervisors should come up with ideas to raise revenues through their departments.

‘‘I know it sounds a bit capitalistic,” he said at last week’s budget meeting.

The town expects at least $100,000 next fiscal year in new revenue from the Warfield Cultural and Commerce Center, Candland said.

The Warfield Center, better known as the Warfield Complex, is 12 historic buildings on the former grounds of the Springfield Hospital Center. The complex is a partnership between Sykesville, Carroll County, the state and private parties.

Sykesville officials are working out a lease agreement with Cafritz Interests of Washington, D.C. for the property. The first payment is due shortly after the lease is signed in the coming months, he said.

Robert said he would like to form a committee to look at how the town can reduce electricity and street light costs.

Electricity will increase by 60 percent because of a new contract with Washington Gas and Electric, Candland said. One of the more noticeable increases is street lighting, from $75,000 to $120,000.

The town has a co-op agreement with Carroll County Chamber of Commerce for electricity through Washington Gas. The contract includes having Baltimore Gas and Electric maintain street lamps.

Sykesville’s current electricity rate is 65 cents per kilowatt hour, and bids for the new contract were initially close to 90 cents to $1, Candland said.

However, Candland said that the street lighting increase would not be that much because some street lighting was exempt in deregulation and the rates could be closer to 66-74 cents per kilowatt hour.

Mayor Jonathan Herman said he planned to discuss forming the two committees at the next council meeting.

The town could also see additional savings in its telephone service, Candland said. Town officials estimate paying $14,200 to Verizon for service in the Town House, police station and Public Works department. Candland said staff is working on getting estimates to see if the town could lower the cost by thousands of dollars.