Category: Budget Page 1 of 12

The City Council has continued its review of the FY27 Proposed Budget, making adjustments to reflect Council priorities and community feedback. This updated version represents the latest status of the budget as it moves closer to formal introduction.

The budget remains balanced, with approximately $31.5 million in General Fund revenue, primarily driven by property and local taxes, along with revenues from fees, permits, and services. Total expenditures are slightly higher, with the gap covered through a planned and responsible use of fund balance.

Council discussions focused on aligning spending with resident priorities while maintaining strong core services. Major investments continue in Public Works, Public Services, and General Government, ensuring that infrastructure maintenance, daily operations, and essential services remain well supported. Funding for Youth, Family, and Senior Services also remains a key priority, reflecting the City’s commitment to supporting residents at all stages of life.

The Capital Improvement Program (CIP) continues to play a central role, with significant funding allocated for infrastructure upgrades, park improvements, and long-term capital needs. These investments help position the City for future growth while maintaining existing assets.

As part of the updated budget, the Council has also supported several targeted staffing additions to meet growing service demands. These include positions focused on emergency assistance, affordable housing initiatives, recreation programming, infrastructure planning, and transportation support for seniors.

Public safety and community well-being remain top priorities. The updated budget continues funding for an additional part-time contract police officer, expanded community outreach efforts, and upgrades to the City’s CCTV system. At the same time, the Council has maintained strong support for community-based initiatives such as the Neighbors Helping Neighbors program, youth and family services, and grants aimed at encouraging homeownership.

Additional investments include park improvements like the Roanoke Place Pocket Park project, environmental programs such as tree removal assistance, expanded Spanish-language communications, and increased voter outreach efforts ahead of the 2027 City election.

Overall, this updated FY27 budget reflects a thoughtful and balanced approach—one that incorporates Council input, responds to community priorities, and continues to invest in the services and programs that make College Park a strong and vibrant community.

The draft FY27 budget is out—it was published last Friday! FY2027 Proposed Budget is a balanced and forward-looking plan that continues our commitment to strong services, fiscal responsibility, and strategic investment—without raising property tax rates.

Before diving in, I want to extend my sincere thanks to our City Manager, Finance Director, and all City staff for the tremendous work that went into putting together this draft budget. I also want to thank our residents, Council, and staff for your valuable feedback throughout the budget preparation process. Your input truly helps shape our priorities.

No Tax Increase & Strong Financial Health

For the third consecutive year, the proposed budget keeps property tax rates unchanged:

• 33.5¢ per $100 of assessed value (residential)
• 38.5¢ per $100 (commercial)

The City maintains a healthy unassigned fund balance of $8.8 million (31%), exceeding our policy goal of 25%. This ensures we are well-positioned to handle economic uncertainty and future needs.

Budget Overview

• Total Budget: $31.5 million
• Increase from FY2026: +$1.67 million (+5.6%)

This increase reflects rising costs while continuing to invest in services residents rely on.

Where the Money Comes From

The City’s revenues are projected at $31.5 million, with the following breakdown:

• Property Taxes: $16.3 million (52%)
• Other Taxes (income, hotel, etc.): $7.1 million (22%)
• Fines & Fees: $4.55 million (14%)
• Licenses & Permits: $1.44 million
• Charges for Services: $796,600

Notably:

• Revenue is increasing by 5.6% overall
• Fines & fees increased by $655,000 (16.8%), largely due to new enforcement tools such as stop-sign camera

How the Budget is Spent

The FY2027 budget allocates resources across key service areas:

• Public Works: $8.65 million
• General Government & Administration: $9.78 million
• Public Services: $6.68 million
• Youth, Family & Senior Services: $2.48 million
• Planning & Community Development: $816,000

Overall departmental expenditures total $28.4 million, with the remainder going to capital transfers, debt service, and contingency.

Investing in People & Services

Personnel costs remain the largest portion of the budget:

• $17.5 million in personnel costs
• 56% of total budget / 62% of departmental spending

Key drivers include:

• 3% cost-of-living adjustment (COLA)
• Rising health insurance, retirement, and mandated benefits
• Strategic hiring to meet service demands

New Positions Added (5 total):

• Seniors Support Assistant
• Housing Project Manager
• Recreation Coordinator
• Engineering Tech / GIS Analyst
• Part-time Bus Driver

Public Safety & Ongoing Study

Public safety continues to be a top priority in this budget. The FY2027 proposal allocates approximately $6.68 million to Public Services, which includes funding for contract police, traffic enforcement, code compliance, and animal welfare programs.

The budget also reflects continued investment in traffic safety initiatives, including expanded enforcement tools such as stop-sign cameras, which are contributing to increased fine revenue.

Importantly, the FY2027 budget includes $30,000 for the ongoing public safety study, an increase from $20,000 in the current year.

The goal is to ensure that, for the level of investment we are already making, our residents receive the highest level of service, faster response times, and more community-focused policing. The results of this study will help guide future decisions as we continue working to improve safety across all neighborhoods.

Capital Investments & Infrastructure

The City continues to invest in long-term infrastructure through the Capital Improvement Program (CIP):

• $1.7 million transfer to capital projects
• Multi-year planning through the FY2027–2031 CIP
• Focus on facilities, infrastructure, and community assets

Debt & Financial Obligations

• Debt service: $1.29 million
• General Obligation debt: $16.87 million, declining after FY2027 payments
• Well below the City’s legal debt limit

Final Year of ARPA Funding

• Total ARPA received: $21.97 million
• All funds are fully committed or spent
• FY2027 is the final year ARPA appears in the budget

Community-Driven Budget

This budget reflects direct input from our community through:

• Fall 2025 community survey
• Online budgeting tool
• Two budget listening sessions

Looking Ahead

This FY2027 Proposed Budget strikes a careful balance:

• No tax increase
• Strong financial reserves
• Targeted investments in services and infrastructure
• Measured staffing growth to meet demand

Even in a time of economic uncertainty, this budget ensures that College Park remains a well-managed, forward-looking, and vibrant community.

What Happens Next?

Now that the proposed budget has been released, the City Council will begin a series of public discussions and reviews. In April, the Council will hold a budget worksession, where the City Manager and department heads will walk through the proposal and answer questions.

Following the worksession, the budget ordinance will be introduced at a regular Council meeting in April, and a public hearing will be held in May to hear directly from residents. After considering public input and any revisions, the Council is required to adopt the budget by May 31, with the new fiscal year beginning on July 1.

A quick reminder that the City of College Park’s final Budget Listening Session will take place tomorrow, Wednesday, March 4 at 6:00 p.m. in the City Hall Council Chambers.

This is the last listening session before the draft budget is published in about two weeks. If you would like to share your thoughts, priorities, or suggestions on how the City should invest your tax dollars, this is the time to do it.

You’ll get a preview of the City’s potential budget plans and have an opportunity to provide input before the formal public hearing process begins. The budget reflects our community’s priorities — from public safety and infrastructure to sustainability, youth programs, and neighborhood services — and your voice matters.

The City also recently collected input from residents through a Budget Priorities Survey. We’ll reference those results as part of our discussion. Here are the budget priorities residents shared through that survey.

Can’t attend in person? You can join us virtually via Zoom:

🔗 https://zoom.us/j/92398574069

(You can also find the Zoom link on the City calendar.)

I hope you’ll join the conversation tomorrow and help shape the future of our City.

We’re kicking off our new budget process, and your voice matters. How should we invest your tax dollars to best serve our community? Join us for an upcoming Budget Listening Session and share your priorities.

📅 Date: February 17
🕕 Time: 6:00 p.m.
📍 Location: City Hall, Council Chambers

At this session, you’ll get a preview of the City’s potential budget plans and have the opportunity to offer input ahead of the public hearing.

Can’t attend in person? The meeting will also be available via Zoom.

🔗 Join online:
https://zoom.us/j/92398574069
(You can also find the Zoom link on the City calendar.)

Your feedback helps guide important decisions—please join us and be part of the conversation!

This year’s survey highlights nine core service initiatives and also includes a suggestion box where you can share additional ideas or priorities. You’ll be able to select and rank the five services you feel are most important. And if something you care about isn’t listed, simply add it in the “Other” category.

You can take the survey at: www.collegeparkmd.gov/budgetfeedback

Whether you’d like to see additional support for education, extended animal control coverage, more sustainability programs, enhanced code enforcement, or expanded community events, your input will help guide how the City invests resources to best serve our residents.

Our goal remains clear: to provide excellent services, transparent and inclusive governance, and strong advocacy for our residents to enhance the quality of life for our diverse community. Your feedback is essential in helping us do that.

Learn more here: https://www.collegeparkmd.gov/CivicAlerts.aspx?AID=875
And please feel free to share the survey link with your neighbors!

Thank you for helping shape College Park’s future.

At the May 20, 2025 Council meeting, the City of College Park adopted its Fiscal Year (FY) 2026 Budget. The new budget, introduced in March, will take effect on July 1, 2025, and represents a continued commitment to financial responsibility, service delivery, and strategic investments across the City.

Stable Tax Rates, Targeted Relief for Residents

The FY2026 budget holds property tax rates steady for another year—33.5 cents per $100 of assessed value for residential properties and 38.5 cents for commercial. These remain significantly below the Prince George’s County municipal average of 63.27 cents. To further support homeowners, the City is maintaining its Homestead Tax Credit cap at 0%, which prevents City tax increases due to rising property assessments. In addition, the Elderly Tax Credit of $150 will continue, helping senior residents stay in their homes.

Investments in City Staff and Services

This year’s budget includes funding for four new full-time positions:

A Public Safety Manager in the Department of Public Services An Economic Development Coordinator in the Department of Economic Development A Human Resources Assistant A Deputy City Manager

The City also extended new employee benefits negotiated through Union agreements, including a 4.5% cost-of-living adjustment (COLA) and the addition of Indigenous People’s Day (Columbus Day) as an official City holiday.

Capital Investments to Support Growth and Sustainability

With a Capital Projects Fund totaling $10.3 million, FY2026 continues the City’s strong focus on infrastructure and neighborhood development. Major projects include:

The Complete and Green Streets project Phase 2 of the Duvall Field renovation Continued investment in the future North College Park Community Center

Strong Financial Reserves

College Park continues to exceed national and local benchmarks for fiscal health. The projected unassigned fund balance for June 30, 2025 is $9.2 million, which represents 36% of operating expenditures. This far surpasses both the Government Finance Officers Association’s recommendation of 16.67% and the City’s own 25% requirement.

Revenue and Spending at a Glance

The FY2026 budget anticipates $29.6 million in total revenue. Most of this comes from general property taxes (52%), other taxes (23%), and fines and fees (13%). The total proposed expenditures—including transfers and contingency funds—also come in at $29.6 million, representing less than a 1% increase over the FY2025 budget.

For more information about the FY2026 Budget, visit www.collegeparkmd.gov/budget.

On April 5, 2025, the College Park  City Council discussed its Proposed FY2026 Budget and Capital Improvement Plan (CIP) at a public worksession. The $29.6 million budget reflects the City’s steady approach to providing high-quality services, maintaining infrastructure, and advancing key priorities like public safety, youth programs, and sustainability—all while keeping tax rates unchanged.

Keeping Property Taxes Flat While Services Grow

For FY2026, the City proposes no change in property tax rates:

• Residential: $0.335 per $100 assessed value

• Commercial: $0.385 per $100 assessed value

Despite a 6.6% increase in total assessed property value (now at $3.916 billion), the City’s constant yield tax rate (CYTR) is lower than the proposed rates, indicating strong property value growth. A typical $400,000 home will pay $1,340 in City taxes—far less than the $4,509 in services provided per parcel.

Supporting Our Workforce with New Positions and Pay Equity

Personnel costs make up $15.9 million (62%) of department expenses—a necessary investment in service delivery. A 4.5% COLA (cost of living adjustment) is proposed for FY2026, the second year of a three-year plan.

Four full-time positions are proposed:

• Public Safety Manager (new)

• Economic Development Coordinator (new)

• Deputy City Manager (new)

• HR Assistant (transferred from City Clerk)

These positions enhance departmental capacity and align with recommendations from the City’s compensation study.

General Fund & Revenues

General Fund revenue is projected at $29.6 million, a modest 0.9% increase over FY2025. While appropriated fund balance decreases by $2.38 million (after being heavily used in FY2025), new revenue sources help offset the difference:

• Income tax: $3.08 million (+$375k)

• Admissions & Amusement tax: $1 million (+$500k)

• Hotel/Motel tax: $1.72 million (+$165k)

• Highway User Revenues: $1.05 million (+$124k)

Speed camera fines remain flat at $3.3 million, with lower processing costs due to renegotiated contracts.

Expenditures and Departmental Highlights

General Government & Administration

• Mayor & Council: Down $719k due to one-time FY25 expenses. Funding continues for restorative justice ($150k proposed).

• City Manager: Up $135k, mainly from new ACM position and COLA.

• Economic Development: Down $405k. New Coordinator position and focus on legacy business grants.

• City Clerk: Down $91k after moving an admin role to HR. New initiative: gift card recognition for volunteer board members.

• City Attorney: Up $39k due to expected increased usage.

• Finance: Up $75k for COLA and step increases. Continues award-winning budget transparency.

• Human Resources: Up $91k with restructured staffing and investments in racial equity and wellness.

• Communications & Events: Up $65k to address rising event costs and limited volunteer availability.

• Information Technology: Up $18k, driven by staffing and cyber initiatives like penetration testing.

• Non-Departmental: Up $82k. Copier leases moved here; LGIT insurance costs are up.

• Elections: Up $70k for FY26 City election cycle.

Public Services

• Administration: Up $146k. New Public Safety Manager position.

• Parking Enforcement: Up $49k. New pay stations and more payment options.

• Code Compliance: Up $24k. Continued training and shift toward proactive enforcement.

• Animal Welfare: Up $94k. Transition to full-time animal control officer.

• Speed Enforcement: Down $72k due to contract changes.

• Contract Police: Up $18k. Continues monthly town halls and targeted patrols.

Planning & Community Development

• Up $56k. Highlights include:

  • Duvall Field Renovation now under construction.

  • Grants: Over $1.1M secured in FY24.

  • New Parks: Calvert Hills, Pierce Avenue, Roanoke Place.

  • North College Park Streetlight Retrofits.

  • River Road Bike Lanes under design.

  • Community Gardens and New Neighbor Grant Program.

  • VEO Micromobility: Over 275K rides.

  • Major Developments: The Mark (679 units), Project Turtle (299 units), Leonardtown Grad Housing (454 units).

  • Proposed User Fee Increases: For plan reviews, permits, and code violations.

Youth, Family & Senior Services

• Administration: Up $100k. Manages tutoring, summer camp, emergency grants.

• Clinical Services: Up $31k. Hired new therapist, implemented new EHR.

• Seniors Program: Up $77k. Supports Age-Friendly CP, Neighbors Helping Neighbors, and new bilingual staff.

Department of Public Works

The City’s largest department, with six major divisions:

Administration: Up $29k. Focus on GoGov and specialized training.

Engineering Services: Up $20k. Supports stormwater, capital projects.

Fleet Services: Up $86k. Moves toward electric vehicles.

Solid Waste Management: Up $139k. Landfill fees rose; food scrap program grows with 458 participants.

Streets & Parking Lots: Up $84k. 14.9” snow, 8,000 gallons of brine used.

Buildings & Grounds: Up $177k. Added tree plantings, facility upgrades, and support for public events.

Capital Projects & CIP

Total $10.03 million, including:

• Duvall Field Renovation: $5.33 million

• North CP Community Center: $1.25 million

• Complete & Green Streets: $1.3 million

• Facilities Capital Reserve: $977k

• Vehicle Replacement Program: $584k

• Sentinel Swamp Sanctuary: $149k

• CP Woods Clubhouse: $100k

• Old Parish House: $25k

Debt Service

The City maintains a healthy debt service ratio of 6%, well below the 10-12% range deemed ideal by credit agencies. In FY2026:

• $1.62 million total debt service

• Includes:

  • $901k for 2019 GO Bonds (City Hall, Duvall Field)

  • $570k for 2015 Parking Garage Bond

  • $150k to pay off Community Legacy Loan

Next Steps in the Budget Process

• April 22: Budget ordinance introduced

• May 6: Public hearing

• May 13: Additional worksession (if needed)

• May 20: Final budget adoption

Conclusion

The FY2026 Proposed Budget continues to build on College Park’s tradition of responsible growth, community engagement, and service excellence. From improving parks and infrastructure to supporting youth, seniors, and local businesses, this budget invests in what matters most to residents—without raising taxes.

Residents are encouraged to review the full proposal and share their feedback at the upcoming public hearing. Together, we are shaping a more vibrant, equitable, and sustainable future for College Park.

At tomorrow’s City Council meeting, the Council will consider approving the FY25 City budget.

On April 23, 2024, the City Council introduced Budget Ordinance 24-O-02 during a public meeting, signaling the commencement of the fiscal planning process for the upcoming year. The ordinance encompasses the proposed FY2025 budgets for the City’s General Fund, ARPA Allocation Fund, Capital Projects Fund, and Debt Service Fund. Following the initial introduction, the City held mandatory public hearings on May 7, 2024, to discuss the ordinance and proposed property tax rate increases for both residential and commercial properties.

Key Budget Changes and Tax Rate Adjustments
The proposed ordinance incorporated feedback and modifications from budget work sessions held on March 23 and April 2, 2024. Notably, after the public hearing, the City Council supported an amendment to reduce the proposed real estate property tax rates. The initial proposal of 34.18 cents per $100 assessed value for residential property and 40 cents per $100 assessed value for commercial, industrial, and apartment properties was reduced to 33.5 cents and 38.5 cents, respectively. This adjustment results in a decrease in general property tax revenues by $424,080.

To accommodate this reduction and ensure a balanced budget, the following adjustments were made:

• Property Tax Revenue Reduction:
  • Residential: $106,080
  • Commercial: $318,000
  • Total Reduction: $424,080
• Offsetting Adjustments:
  • Reduce contingency savings: $151,500
  • Spread NCPCC (North College Park Community Center) funds to three years (reduce transfer to CIP): $125,000
  • Restore funding for Big 10 Friday Night Live event: $12,500
  • Restore funding to print Resident Guide twice a year: $26,000
  • Increase Contingency line: $3,920
  • Appropriate fund balance (from FY2024 surplus) for FY2025: $190,000

Summary of Proposed Budgets

The ordinance details the allocation of funds across various departments and projects for the fiscal year beginning July 1, 2024, and ending June 30, 2025. Highlights include:

General Fund

Total Revenue: $27,174,702

Major Revenue Sources:

• General Property Taxes: $14,632,680
• Other Taxes: $5,675,807
• Licenses & Permits: $1,370,250

Key Expenditures:

• General Government and Administration: $8,060,408
• Public Services: $5,882,899
• Public Works: $7,364,209

ARPA Allocation Fund

Total Revenue: $582,500

Key Expenditures:

• Housing retrofits for aging-in-place: $250,000
• Public health expenses: $82,500

Capital Projects Fund

Total Revenue: $17,083,237

Key Expenditures: $10,971,342

Debt Service Fund

Total Revenue: $1,474,233

Key Expenditures:

• Debt Service (Parking Garage and Public Improvement Bonds): $1,474,233

Ordinance Provisions and Implementation

The ordinance sets the tax levy at:

• Residential Property: 33.5 cents per $100 assessed value
• Commercial Property: 38.5 cents per $100 assessed value
• Personal Property: 83.8 cents per $100 assessed value

Net speed enforcement camera revenues will be allocated solely for public safety purposes. Additionally, the ordinance outlines the adoption of the FY2025 Pavement Management Plan, the FY2025 Pay Plan, and the inclusion of City employees in the Maryland State Retirement and Pension System.

Conclusion and Next Steps

The City Charter allows for the adoption of the budget with amendments without further public hearings, provided it is completed by May 31, 2024. The ordinance will become effective on July 1, 2024. Residents are encouraged to review the FY2025 proposed budget document available on the City’s website for more detailed information.

The mayor and the City Council remain committed to fiscal responsibility and transparency. They ensure that the budget reflects the community’s priorities and needs while maintaining financial stability.