City Council adopts budget for FY 2009-10

May 26, 2009|By DAN DEARTH

HAGERSTOWN -- The Hagerstown City Council on Tuesday voted 5-0 to adopt the $160.1 million municipal budget for fiscal year 2009-10.

City Finance Director Alfred Martin said after the council meeting Tuesday that the budget is tight, but the city will be able to provide the existing level of services to residents.

"In spite of the economic uncertainty we're facing and the decline in state funding, the city is in relatively good condition for the upcoming year," Martin said.

The budget for fiscal year 2009-10 is about $3.7 million lower than this fiscal year's $163.8 million spending plan, according to city documents.

The newly passed budget includes $52.9 million for capital improvement projects. Of that $52.9 million, $17.7 million will be used to improve the city's sewer services. About $6.4 million will be used to design and construct a 6.4 million-gallon water tank to replace the West End Reservoir, which is uncovered and was built in 1906.

The water tank project is to be finished by the end of this year, budget documents show.

The budget does not include an increase in the property tax rate.

Martin said the rate will remain at 78.8 cents per every $100 of assessed value of real estate, and $1.97 per every $100 of assessed value of business property.

The city anticipates raising about $25.6 million in property taxes in the next fiscal year, according to budget documents. The city collected about $23.9 million in fiscal year 2008-09.

Of the overall budget for fiscal year 2009-10, about $40.5 million will go to the General Fund, which pays for services not linked to utilities, such as the Hagerstown police and fire departments.

Fiscal year 2009-10 goes from July 1, 2009, to June 30, 2010.

Residents may view the budget at www.hagerstownmd.org.

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