Get ready folks, taxes are going up.
At their Tuesday meeting the commissioners voted to increase the property tax to 5½ cents in an attempt to close a $2 million budget gap.
Chief Finance Office Pat Merritt said most residents won’t see a change in their taxable value for a few years because of the homestead tax credits. Those who will are owners of vacation homes and those who bought their homes at the height of the real estate boom.
“We’ve got a big hole that we’ve got to fill … we’ve taken a lot of big hits from the state,” commissioner Ron Fithian said. “We’re trying to spread the pain around. Everyone’s going to feel it. It’s not just going to fall on one group or another.”
To give residents an idea of the current financial situation, Commissioner William Pickrum said that there is a negative balance of $1,419,871.36 in the county’s bank account. Which means the county is operating on credit. Merritt said that the balance would change next week when the revenue from income taxes comes in, but it’s not enough to change the fact that there is a budget shortfall.
The preliminary budget for Fiscal Year 2011 has projected revenue of $40.4 million and expenses of $43.1 million. To make up the difference the county plans to cut expenses by $536,000 by: relocating the Local Management Board to save money on rent and utilities; changing allocation amounts to outside agencies; removing consulting services and training; taking a 14 percent increase for health insurance versus a 20 percent increase; reducing the library budget by 5 percent, social services by 15 percent, and the health department by 15 percent; and discussing possible furlough days for county employees.
These changes are in addition to any cuts that have already been made including the elimination of the curbside recycling program, consolidating the county’s economic development office, and eliminating more than 20 positions through retirement or vacancies. Even with the new cuts in place the county would still be short more than $360,000.
Raising property taxes is the only option left. “I don’t know where else we could’ve gone to take out that amount of money,” Merritt said.
That being said, both Pickrum and Fithian said that if anyone out there has a better idea, “we’re all ears.”
The budget is still in the preliminary stages, but June 9 is the target date for a public hearing on the FY 2011 budget. FY 2011 starts July 1.
don sparks says
Now that we’ve decided our property taxes are being raised, is someone going to come back around to reassess our property values? Right now, they are assessed at a 2008 value, which is much higher than a current appraised value.
MD Eastern Shore says
As the decline in property values is reflected in assessments over the coming years, that means only one thing… the property tax rate will continue to go up so that the county can continue to collect the same amount it did the previous year. And then, when values begin to rise again, do we think the rate will go back down? Grab your wallets, folks, and hold on for dear life!
Gren Whitman says
Raising taxes to cover Kent County’s budget deficit?
Sounds like creeping socialism to me!
Oh, and while Defense Secretary Gates attempts to reduce the bloated national military budget, representatives from both parties kick back. For example, the C-17 cargo plane (which Gates wants to cut) has broad legislative support because building it employs 30,000 people in several states.
Ike’s “military-industrial complex” is coming home to roost, and we’re paying the bill … and paying … and paying…
John Vail says
If I’m not mistaken, the property tax rate will go up by 5.5 cents per $100 of assessed value — to a rate of $1.027. We could only wish that the rate were 5.5. cents!
Here’s one suggestion for the Commissioners: institute a personal property tax on pleasure craft, based on the length of the boat. The tax wouldn’t apply to workboats and you could exempt boats under a certain length (or horsepower engine) so as not to penalize people who may supplement their diets by crabbing or fishing. Strikes me that such a tax would be pretty progressive — it would affect most heavily the people who can most afford it.
Concerned citizen says
With the low to no building going on the county- maybe the county could cut some of the positions in the county planning and zoning and other areas of county employees until those employee services are needed again in the future IF building ever starts again…otherwise we are paying these people for doing nothing everyday!
Daniel Menefee says
There was a fair amount of property sold to the college a year or two ago- the La Motte property, the college has to pay no real estate taxes on most if not all of their real estate. If anyone is in a position to fill the GAP, maybe we chould consider the WC?
Why should the college get a free pass an paying their share?