Proposed Laurel budget lowers property tax rate

Mayor’s $25M plan would raise spending more than 8 percent and add three police officers to the city’s force

The budget proposes that the current real property tax rate of 72 cents for every $100 of assessed value will decrease by one cent to 71 cents. This will generate about $16.2 million for the city. One cent of the tax rate generates $229,500, according to the proposed budget, which is about how much the city will lose by lowering the rate. The personal property tax rate of $1.68 for every $100 of assessed value will remain the same.

‘‘When we increased the property tax three years or so ago, one of the things that we wanted to make sure the citizens understood was that when we get to a point in time where we didn’t need the money, we’d give it back,” Council President Frederick Smalls (Ward 2) said. ‘‘We’re definitely glad we’re able to do it and we’re keeping our word.”

Michele Saylor, director of the city budget office, said due to cuts in state funding the city voted to raise the tax rate for fiscal 2004 from 64 cents to 73 cents per $100 of assessed value. In fiscal 2006, it decreased to 72 cents.

City Administrator Kristie Mills said the city is able to reduce the tax since revenues have increased from the completion of older development plans.

‘‘We’ve enjoyed the benefit of development interest and a lot of undeveloped property has come on line as developed,” she said. ‘‘Houses have been completed and are now taxable.”

The city will hold a number of work sessions on the budget and a public hearing at 7 p.m. May 28. The budget goes into effect July 1 and runs through June 30, 2009.

In Moe’s memo to the City Council, he said some of the bigger expenditures in the proposed fiscal 2009 budget, as in most years, are for employee pay, pensions and insurance.

The proposed budget includes a 2.5 percent, merit-based salary increase for all current employees, which can be given on employees’ anniversary days. Auxiliary and recreation employees also could see a raise of 6.5 percent to match the upcoming new federal minimum wage of $6.55 per hour.

‘‘[The proposed budget] recognizes the necessity to maintain salary parity and competitiveness with area governments and the greater Laurel market area,” Mills said in an e-mail. ‘‘It is a good, fundamental budget that we look forward to working with the City Council to adopt.”

Proposed in the budget is the addition of three police officers to keep pace with the city’s growth. The city added three officers in fiscal 2008, as well.

The budget also includes an increase from $62,359 to $110,688 for tree management. The city is planning a tree-planting program during the upcoming fiscal year, with some of the new trees to be planted in the Villages of Wellington developments and along Cherry Lane and Contee Road.

The city also has proposed cuts in community promotion, which funds major activities like the July 4th celebration, Main Street Festival, Christmas Parade and Annual Open House. This year $53,840 is being proposed to fund such events, compared to $126,315 last year.

Mills said in fiscal 2008, the city added about $90,000 to the community promotion fund for the Corridor Transportation Corporation, or CTC, which provides bus service in the Laurel area. CTC had requested help with funding, she said.

The Department of Public Works requested $310,903 in administration funding, an increase of $178,159 from fiscal 2008. According to the budget, the increase is necessary to expand the recycling education program and improve the city-run recycling program. The department also is expected to receive new computer programs to monitor contract activity and budgets.

The Department of Community Planning and Business Services requested $1 million, up from $889,659, for its functions, which will include revitalization projects like Hawthorne Place and Laurel Commons, which were both approved by the City Council during the current fiscal year.

In fiscal 2008, the city budgeted $17,626 in operating expenses for a former church-school building on Fifth Street the city bought in April 2007 to be converted into a new police station. This year, the Department of Parks and Recreation is proposing $48,900 in operating expenses.

Construction is expected to begin in January 2009 and be complete by December 2009, Director of Public Works Paul McCullagh said.

The city purchased the building for $2.5 million and originally said it would take $3 million, which is in the Capital Improvement Plan budget, to renovate it.