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Some ask for property tax changes

May 04, 2005|by GREGORY T. SIMMONS

gregs@herald-mail.com

HAGERSTOWN - During brief hearings Tuesday evening on the City of Hagerstown's budget proposals, including the city's property tax rate, only three people called for possible changes to the city's spending plans for the coming fiscal year.

The city's fiscal 2005-06 budget totals $107.7 million. The plan, including the tax rate, must be adopted by May 31.

Votes to adopt the plan are scheduled for May 24.

City homeowners Howard Mendelsohn, 69, and Edward Kendall, 72, asked city officials to look at the possibility of reducing the city's property tax rate or instituting programs to aid those with fixed incomes.

City officials also heard a request to increase spending on emergency services.

City officials have proposed to keep the city property tax rate the same for the coming budget year as was set this time last year, 79.8 cents per $100 of assessed real property value. For a $150,000 house, that would translate into a $1,197 annual property tax bill from the city, excluding other property taxes.

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Despite leaving the rate the same, real estate property assessments throughout the city are expected to increase 7.5 percent on average.

According to city estimates, that rise in expected assessments will lead to approximately $911,000 in new property tax revenues.

The two city residents spoke their concerns of rising property assessments.

"The recent increase in assessments are staggering," Mendelsohn said. "We are looking at average assessment increases of 36 percent over the next three years."

Mendelsohn continued, "Add inflation to the mix, and those citizens on fixed incomes are dead in the water."

Kendall said rising energy costs, rising Medicare costs and Social Security payments that aren't keeping up make it difficult to meet the increased taxes.

"I just find no way I'm going to be able to keep up with things," Kendall said.

One quick fix could be for city residents to apply for an underused state program, City Finance Director Alfred Martin said. Martin said the Homeowners' Property Tax Credit program, as well as the Maryland Renters' Tax Credit program, are available through the State Department of Assessments and Taxation, and can help ease the tax assessment increases.

In a separate public hearing Tuesday, only one speaker asked for new consideration of the city's general spending plan.

Terry Trovinger, the chief finance officer of Community Rescue Services, told the City Council his organization is increasingly stressed financially, and while he was not asking for emergency funding, he did ask for the city to consider increasing its annual allocation above the current $50,000 level.

Trovinger listed a number of statistics on the number of calls that CRS responds to inside city limits, the number of volunteers and the cost of each emergency response.

"Bottom line, our territory is growing, but our number of volunteers is not," Trovinger said.

One councilman responded positively to Trovinger's request. N. Linn Hendershot said he would like to see the annual allocation be closer to $100,000.

"I think the citizens of Hagerstown would truly benefit," Hendershot said.

The city also held hearings for the one- and five-year spending plans for the federal Community Development Block Grant Program. While three speakers thanked the city for the proposed spending for the coming fiscal year, none spoke in opposition to that portion of the city's budget.

The Community Development Block Grant Program is paid in large part by grants from the U.S. Department of Housing and Urban Development. The program would spend $2.9 million in the 2005-06 fiscal year, if adopted as proposed.

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