April 29, 2024
Property

Wicomico Co. budget proposal item raises questions on revenue cap, property tax


Wico Council Meeting

WICOMICO COUNTY, Md. – Wicomico County leaders are considering the next budget. It’s ringing up as $198 million, a 2.7% increase from last year.

Bound for the Budget?

However, the county’s decision makers are at odds over funding for a major revamp at Fruitland Primary School. The point of contention surrounds where the money will come from, in order to pay for the construction project: the county budget or capital improvement plan [CIP]?

“The Council chose, at the last meeting, to fund $20.5 million for Fruitland Primary School,” said Wicomico County Council President John Cannon. “We chose, specifically, to take that out of reserves because we have a very high reserve in Wicomico County.”

However, County Executive Julie Giordano argues that that type of money move, cannot be done.

“Authoritatively, they don’t have that ability to do that, because the state law that they were referencing actually has them being able to add to the budget if that funding was cut, not a CIP,” Giordano said.

Pushing Past Revenue Cap

In the proposed budget, property taxes are set at $87.39 per $100 of assessed value; about a cent less than last year, but also pushing the county past its revenue cap.

“It appears as if the Executive has chosen to go above the revenue cap, which we have never done before, in order to help fund this project,” Cannon said. “We don’t think it’s proper, and in the best interest of the citizens of Wicomico County to take punitive measures against them, and force them to pay more taxes than they would, simply because there may be a disagreement on who may have the authority to fund this school, to whatever degree.”

What county leaders do agree on, is the fact that the County’s revenue cap can be surpassed to support education, per state law. Cannon argues that funding the Fruitland Primary project in the budget, instead of the CIP would push expenses to taxpayers.

“Because property values have increased, because appraisals have increased, that means under most circumstances that the county would be required to reduce the property tax, which is what will happen,” Cannon said. “They’re choosing to not reduce it as much as we might be allowed to do.”

Long-Term Planning Questions

Work on the project is expected to cost $79 million, total. And while most of that funding is expected to be furnished by the state, Cannon says long-term planning on the county’s part hasn’t been fully fleshed out. He added that the county’s Board of Education requested $20.5 million for 2025 and 2026, and about $8 million for 2027.

“The County had given $1.4 million last year. They were putting $4 million in the budget this year, but it doesn’t make any sense because you have the state involved, as well. And, they want to see the long-term plan for five years,” Cannon said.

The Executive says the County is on track to go to bond for construction in the fall. Giordano added that she’s keeping an eye on other future priorities that need to be funded.

“Right now, we have other things that are coming in to play that we need to make sure that we have funding for, and that we’re keeping a good amount in that for our bond rating,” Giordano said.

Other Budget Priorities

In attempting to meet other budget priorities, Giordano says the work was very “strategic.” An example, she says, would be taking care of one-time expenses sooner than later. One of the those expenses: about $163,000 for corrections security equipment.

“One-time capital expenditure, we were able to do in 2024. So, we were able to take them off of the books of 2025,” Giordano said. “You will see, operationally, that we have gone up about 6%, but you will also see that we have gone down in capital.”

Public safety was also a top ticket item, with goals set for more competitive salaries for the Wicomico County State’s Attorney’s office, and dispatchers.

“We have done a new payscale for corrections,” said Giordano. “I think it’s a lot more attractive for people to come. We are also looking at our Sheriffs Office collective-bargaining agreement.”

County employees can also expect a 5% pay increase, and a 5% cost of living adjustment. Spouses may also join county employees’ health insurance, and the county may also accept military time.

“We get these great people, and we train them for a couple of years, and then they end up going somewhere else,” Giordano said. “So, we want to make sure that we’re keeping them here.”

Looking Ahead

Cannon says he and other Council members will be combing through the proposed budget to take a look at everything included. They must do so by July 1st, which is when it goes into effect.

“We’ve just done a cursory review of it, and once we get deeper into it,” Cannon said. “Then, we’ll have a better idea of what exactly what we think will be in the best interest of the citizens of the County.”





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