The City recently published the City Manager’s proposed FY25 budget. The draft budget can be found here online.

Here are the key facts about the proposed budget:

  • There was a total budget expenditure of $27.5 million, representing an additional $2.7 million from last year’s budget.
  • A residential property tax rate of $0.3518 (a 5-cent increase) and a commercial, industrial, and apartment property tax rate of $0.40 (a 6.82-cent increase) will increase property taxes by $195 annually or $16 per month on the average-value residence in College Park of $390,000.
  • The budget proposes three news staff : (a) Bilingual Communications Coordinator – $54k (b) Code Enforcement Manager – $115k (c) Youth and Family Services  – Admin. Asst/ Receptionist – $45k. Benefits are probably around $30k to $40k for all 3, depending on healthcare coverage.
  • The project end of FY24 surplus is $1.04 million. The surplus will be added to the reserve if not used in the new budget. The City has a healthy reserve pf nearly $9 million, which makes 37% of the total expenditures. The City charter requires a reserve balance of 25%.
  • The Homestead Cap is left at 0%, in keeping with Council priorities, and I am also recommending a $50 increase to the Elderly Property Tax Credit to $200.
    As a reminder, with the Homestead Cap at 0% for the last six years, residential taxpayers with Homestead have not seen any increases in their tax bills, but reductions in the three fiscal years the property tax rate was reduced to the CYTR.
  • Various credits, including the homestead credit, homeowner’s credit, and elderly property tax credit adopted for FY2024, reduce residential real estate property tax. The proposed increase in the Elderly Tax credit to $200 would offset the projected property tax increase on the average residential value of $195.

 

The following graphic can help explain the rationale behind the tax increase proposal.

The City Manager presents the proposed budget to the City Council at a Saturday budget work session scheduled for this Saturday (March 23rd) to review and discuss it. Following this meeting, the proposed budget will be revised as needed, and a budget ordinance will be introduced at a City Council meeting in late April. At a City Council meeting, a public hearing on the budget ordinance is held in May. In adherence to City Charter requirements, the budget ordinance is adopted for the upcoming fiscal year by May 31.

We’re also working on a budget listening session soon. Details are coming soon.