The Garrett County commissioners on Tuesday unanimously approved a $73.1 million operating budget for fiscal year 2014. This figure does not include capital expenditures and debt service. Pdf file here.
The FY ’13 operating budget was $72.5 million, excluding capital expenses.
“Both operating and capital budgets for fiscal year 2014 show that Garrett County chooses to operate within its means, just as a household or business would have to do in order to remain solvent,” Commissioner Gregan Crawford said.
He added that the county is still able to meet its fiscal responsibilities and continues to deliver an acceptable level of services, which is prudent during this time of budgetary cuts.
The commissioners also voted unanimously to keep the real property tax rate at $.99 per $100 of assessed value for all areas of the county except Mountain Lake Park. Because of a tax differential agreement with the county, that town’s rate will be $.927. Both rates include a special fire tax levy of $.034 and a Garrett County Landfill bond tax of $.02.
Property tax revenue for FY ’14 is projected at $43.4 million. Because of a small increase in assessable property values, this is $114,714 more than the county garnered in FY ’13. In their budget document message, the commissioners called this increase “insignificant.”
“The three budgets that we’ve been directly involved in as the board of county commissioners have been quite a challenge,” said Commissioner Jim Raley. “In essence, all the new revenues to the county over the three years have been distributed primarily to backfill the loss of state revenues to the Board of Education and, this year, to the Health Department, both of whom provide vital services to our population.”
He said the county needed to grow its economy and population, work to retain its young people, and find ways to increase its revenue stream.
“It’s easy to say, ‘Just raise taxes and that will fix the problem,'” Raley said. “But when does it end – that vicious cycle of government reaching into the pockets of citizens who are just making it or businesses that are struggling to keep their doors open.”
Though it seems small, he indicated, a two or three cent tax increase greatly affects their bottom lines, resulting in homes being repossessed and businesses closing.
In addition to property taxes, the county’s other revenue sources include grants, various permit fees, and income taxes. The county’s Financial Services office projects that about $11.1 million will be garnered from income taxes in FY ’14, which is an increase of $1 million compared to FY ’13.
