Left to right, Calvert Department of Finance and Budget Director Tim Hayden and Deputy Director Lashon Bethea.
Prince Frederick, MD – The preliminary numbers look encouraging for Calvert County Government as the process begins for crafting an operating budget for the next fiscal year. During the Calvert County Commissioners’ Sept. 25 meeting a budget strategy discussion was led by Department of Finance and Budget Director Tim Hayden and his new deputy, Lashon Bethea. One significant fact mentioned during the session was that any final decisions on the fiscal year 2020 budget will be made by individuals who are not currently on the board. Calvert will have at least three new county commissioners before 2019 begins.
“A majority of this board will not be adopting this budget,” said Hayden.
In a memo from Bethea to the commissioners, it was noted that “the financial projection for FY 2020 uses $0.937 [per $100 of assessed value] property tax rate adopted in FY 2019. Bethea also stated that, based on the current funding formula, the Calvert County Board of Education could see a nearly $4 million increase in county funding for the next fiscal year. The factors used to arrive at the tentative figure include current student enrollment and the Consumer Price Index.
Hayden pointed out that real property tax revenues are projected to increase over 2 percent. A nearly $9.3 million increase in the payment in lieu of taxes (PILOT) from Dominion Cove Point is also factored into the preliminary budget totals. The Dominion PILOT revenues are expected to reach an apex by 2021 with a decline beginning in 2024. In was the consensus of the commissioners that revenues in excess of approximately $54 million anticipated for four consecutive fiscal years needed to be used to address one-time “infrastructure” needs.
The gray area of the budget forecast involves income tax revenues. Commissioners’ President Evan K. Slaughenhoupt Jr. [R-District 3] conceded that the projected $91 million yield “could be off significantly.”
The department sought guidance from the commissioners regarding the granting of pay step increases and a cost of living adjustment for county employees, budgeting $1 million for land preservation programs and budgeting for other post employee benefits.
In his memo, Bethea told the commissioners the department would be sending the “budget guidance” components to other county government departments Oct. 1. “Again this year, we recommend that departments propose a ‘maintenance budget’ that does not contain any new initiatives or new staff. Departments should detail additional requests in a separate column with supporting documentation.”
Before the work session ended, a presentation slide dealing with a “what if” scenario regarding the controversial 2016 tax rate increase was discussed. The slide showed the next board would be dealing with a nearly $10 million budget deficit if the property and income tax rates had not been bumped up by a majority of the board. To current commissioner candidates who are critical of the increases, Slaughenhoupt said, “it’s time to put the money where the mouth is.”
“It looks easy until you get here,” said Commissioner Pat Nutter [R-District 2], indicating the rate increases had to be done to stave off drastic budget cuts.
Slaughenhoupt and Nutter did not seek third terms on the board. The third commissioner voting for the rate increases, Commissioners’ Vice President Tom Hejl [R – At large] lost his reelection bid in the June Primary.
Hayden and Bethea said additional budget work sessions will be scheduled at the commissioners’ request and the budget calendar will be posted on the county government web site.
Contact Marty Madden at marty.madden@thebaynet.com