City might raise water rates

Budget proposal doesn't include property tax increase

April 21, 2009|By DAN DEARTH

HAGERSTOWN -- A property tax increase isn't included in the City of Hagerstown's proposed budget for fiscal year 2009-10, but utility rate increases are being considered, City Administrator Bruce Zimmerman said Tuesday during a City Council work session.

Zimmerman said that although property taxes are expected to stay the same in the $161.5 million proposed budget, water and wastewater rates could increase.

Those increases could be 11.5 percent for water and 12.75 percent for wastewater, he said. If the rate increases are passed, they would take effect Oct. 1.

Zimmerman said the proposed water and wastewater increases are "preliminary assumptions" at this point.

Even though the city's property tax rate of 78.8 cents per $100 of assessment isn't projected to increase, homeowners could end up paying more in taxes because the value of their homes went up, City Finance Director Alfred Martin said after the work session.

The city's proposed budget is about $2.24 million less than the $163.8 million budget for the current fiscal year.

Martin said the proposed budget is smaller in part because the city is projected to save $376,341 in personnel costs when 11 city dispatchers will become employees of Washington County. Those employees will help operate a new 911 center, Martin said.

The center should be up and running in September, Washington County Public Works Director Joseph Kroboth has said.

Martin said the city also will save $172,241 in health-care costs because claim expenses over the last year were about $1 million less than projected.

In addition, the proposed budget doesn't provide cost-of-living adjustments for city employees.

The savings have helped the city remain in good fiscal shape despite a proposed $5.1 million increase in the Water Department's operating budget, Martin said. That increase will help pay for the construction of the water tank on the city's west end.

Martin said the council is required by charter to pass a budget for fiscal year 2009-10 by May 31.

The city will hold a public hearing to discuss the budget at 7 p.m. May 5 on the second floor of City Hall.

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