(11/2021) A few big topics from the Frederick County Council were debated this last month. Mainly, the debate centers around what to do with a large budget surplus in Frederick County.
Frederick County is in good fiscal health. County property taxes and even more so the income tax have generated a substantial surplus. Currently, there is around a $74 million surplus on a budget of over $700 million. By the way, this does not include an additional $50 million from the federal government in Covid relief funds (for which we have not allocated yet).
Philosophically, I don’t view this as a government windfall. Rather, it is almost entirely accounted for due to income and property taxes generated by the citizens. It is an overpayment of 10% in taxes to the county from the taxpayers. To me, it should not be treated as money for the government to spend, but rather money to return back to the taxpayers.
However, in the month of October, the County Council learned that Frederick County had been negotiating to make a rather large purchase. The County approached the seller of the old State Farm building off of Route 15 and Route 40 near the Red Horse with interest to purchase the building. In fact, the County made an offer of $20 million to purchase the building. The building did need some immediate repairs (including roof) which added about $12 million. This was reportedly the biggest purchase the county has ever made.
Ultimately, the County Council heard many ideas about what to do with this building once it was in the county’s hands, but no concrete plan of which Divisions to move in, how this will benefit the taxpayers, or an analysis of why purchasing this old building would be better than a needs analysis taking into account telework and evaluating what exactly the county needs to own. Is it a better deal for taxpayers to wait to purchase office space or even lease?
I voted against this $32 million expenditure for many of these reasons. Ultimately, this surplus money should include an open, transparent dialogue with the community, not a rush to purchase a 60 year old building without a concrete plan to be able to explain to the public what the space will become.
Nevertheless, the building was purchased by Frederick County with this surplus money as my Council members disagreed with my position. However, that still leaves the County with an over $40 million surplus. Council Member Blue has rightfully proposed a tax rebate which I am a proponent of. His plan calls for the return of $7.4 million to the taxypayers -- about 10% of the surplus by giving a $175 to each house that is valued at less than around $328,000. This would result in about half of Frederick County households receiving a payment and half receiving nothing.
I am challenging the Council to at least double the $7.4 million to be returned to the taxpayers. Every household has contributed to the surplus, so every household should get a tax rebate. Each property owner should get a check for $175. I believe we must return this surplus to the taxpayers before more of it is spent.