FY-24 town budget Approved

(5/25) At the May 24 town meeting the Town Council voted to approve the 2024 fiscal year General & Water Fund budgets, which collectively amount to $8,708,031, an increase of $875,269 over last year. The vote was 4 -1, with Michael McNiesh casting the dissenting vote

The General Fund budget calls for revenues of $6,944,698, an increase of $633,454 over last year. Real estate taxes account for approximately $1,062,330 of the Town’s revenue, an increase of $86,000 over last year due to the decision of the Town to keep the tax rate the same as last year. $339,964 comes from business property taxes; $1,184,040 is coming from the Town’s ‘piggy back’ tax on residents’ state income tax payments; $960,555 comes from the County as ‘rebates’ for the Town expenses related to the Town providing services such as police coverage & parks, which the County is required to provide; and, $364,153 comes from ‘highway taxes,’ i.e. state motor fuel and vehicle taxes distributed to local governments for their own road and bridge maintenance.

Other sources of income include Project Open Space grants, Interest on town’s accounts, rental and amusement income. The various sources of income, however, fall $2,337,616 short on next year’s expenses, so the Town is dipping into its reserve fund to balance the budget.

The General Fund budget anticipates $6,944,698 in expenditures, with total recurring expenses making up $4,285,302 and capital expenditures being $2,659,396. This is a 3.7% increase of over last year.

Recurring expenses include $750,000 for staff salaries; $374,165 for parks; $300,000 for trash and yard waste collection; $165,000 for staff medical insurance; $130,000 for planning and zoning related expenses; $522,000 for building & street maintenance; $120,000 for staff retirement contributions; and $120,000 for street lighting & utilities.

Other recurring expenses included workmen’s compensation, recycling, code enforcement, and $30,000 in contributions to the Ambulance & Fire Companies.

The police budget, which is also paid out of the general fund, will increase from $1,360,000 to $1,650,000. This increase will cover increased overtime costs for the five state troopers assigned to Walkersville.

The budget for security monitoring will also increase from $1,600 to $10,000 to pay for security cameras and other equipment at the newly-renovated Creamery Park as well as potential new facilities like a dog park at Heritage Farm Park.

Capital expenditures will include rollover for several projects, such as the renovation of the Heritage Farm Park playground and improvements to Maple Avenue and Maryland Avenue (estimated at $1.144 million). New capital expenditures consist primarily of a $250,000 investment in sidewalk and roadway renovation as well as additional public works equipment.

The 2024 Water Fund budget is set at $1,763,333 with only $1,449,000 in revenue, creating a $314,333 deficit. Members of the Town Council expressed concern that this may require an increase in water rates.

"It’s hard for us to say it and hard for citizens to hear it, but the water fund is a business and we shouldn’t just be breaking even," said Town Manager Sean Williams.

Commissioner Mike McNiesh challenged a potential rate increase, stating, "I disagree with the premise of trying to make money on a private business--for the town residents, I feel like this should be a net zero goal. That being said, we are showing a significant deficit and we do need to address that."

Burgess Weddle recommended that either a special assessment be made in the fall or a tiered water rate be considered to account for the deficit. Water billing is expected to be made quarterly by that time.

For more information, residents can view the introduced budgets on the Town website.