Prince Frederick, MD – It appears the next fiscal year in Calvert will be greeted with smiling faces—at least among government, law enforcement and education workers. County officials presented the proposed Fiscal Year (FY) 2018 budget to the public Tuesday, May 23 at a public hearing. The hearing was held at Calvert Pines Senior Center.
Leaders of the county government’s Department of Finance and Budget stated the commissioners’ general fund budget for FY 2018 currently totals $282.8 million and is “balanced with no use of prior year’s fund balance. This budget shows an increase of about $36 million from the FY 2017 budget and is about $1 million more than the staff-recommended budget presented in March.
Commissioners President Tom Hejl told the audience that for almost a decade Calvert County has suffered from “the budget blues. We were in a serious economic downturn.” Hejl indicated the fiscal doldrums might now be a thing of the past.
The biggest stream of new revenue is coming from the payment in lieu of taxes (PILOT) county leaders negotiated with Dominion Energy. The $25 million payment comes months before the Dominion Cove Point Liquefied Natural Gas (LNG) Plant’s $3.8 billion liquefaction project is completed. Department of Finance and Budget Director Tim Hayden stated that in order for the county to receive a payment from Dominion next year the liquefaction unit has to be on line next June. While Hayden cited the result of the 2017 Preakness States as proof that nothing is absolutely certain, he admitted he believes the LNG export component will be operational next year.
Unlike FY 2017, no tax rate increases are planned. The income tax revenue projected for FY 2018 has increased by $8 million. Despite calls for lowering the property tax rate, which was raised last fiscal year, the $.952 per $100 of assessed value rate remains in place. Hayden noted that Calvert County still has one of the lowest property tax rates among Maryland’s jurisdictions.
Nearly half of the general fund operating budget is directed to local education. Nearly 38 percent of Calvert’s six-year capital projects’ budget is currently designated for education projects. “Education funding will be set at the level agreed to in the new funding formula and includes $115.67 million for operations and $4.99 million for teacher pension costs,” Department of Finance and Budget Deputy Director Joan Thorp stated.
“We are really pleased with the budget presented,” said Superintendent of Schools Dr. Daniel Curry (pictured above, right). The superintendent indicated the added funds will allow for employee salary increases in the form of a pay step and a “restored step.” Curry said school system officials should be able to meet on contractual obligations for the next three years.
During public comment, Northern High School teacher Gary Clites thanked the county commissioners and Calvert Board of Education (BOE) for collaborating on a new funding formula. Clites also expressed appreciation to the public for its support for teachers during the March budget presentation, which occurred prior to the funding formula being finalized. “We were kind of amazed at the number of people who showed up,” he stated.
Another teacher, Carol Howard of St. Leonard, also thanked the two boards for forging the formula, noting that the added funding is a beginning to fulfilling promises that got sidetracked by the sour economy. “We have fought to get back what was promised,” said Howard.
Calvert County Sheriff Mike Evans told the commissioners and department staff he was “grateful for the steps and COLAs[cost of living adjustments]” deputies, correctional officers and sheriff’s office staff received in the proposed budget. He noted, however, that the sheriff’s office lost “several tenured employees” recently to other counties due to the lack of previously promised pay increases. He asked the board to consider raising starting salaries so Calvert can “get even with other counties.”
Not everyone who spoke was happy with the numbers presented. “That money from Dominion went pretty fast, didn’t it?” Huntingtown resident Paul Harrison quipped as he stepped to the microphone. Harrison, who ran for county commissioner in 2014, called on the commissioners to reconsider their decision not to tweak the property tax rate to the benefit of property owners. “There are many people who can’t afford to live here,” said Harrison.
While the tax rates won’t be raised, fees for water, sewer and solid waste will be hiked in FY 2018. Those revenues are directed to enterprise funds designed to make the amenities self-sustaining.
Hayden said the FY 2018 budget is scheduled for adoption June 6. The new fiscal year starts July 1.
Contact Marty Madden at marty.madden@thebaynet.com