(5/21) The introduction of the FY-26 budget showed that Walkersville has a $921,000 deficit that must be addressed before approval in June as the new Fiscal Year Budget takes effect July 1st.
Overall, the General Fund, where day-to-day Town operating expenses (such as office salaries, insurance, vehicle maintenance, etc.) are pulled from, is expected to see $5,297,256 in revenue. Of this, $1,300,000 is attributed to property tax, $1,349,317 from State income taxes and $1,126,002 from County tax rebate, as well as other sources.
Total expenses attributed to the General Fund are $6,218,804, with $5,031,250 recurring costs and Capital Projects providing the rest at $1,187,554. Some of the recurring expenses include $300,000 in office salaries, $480,000 in maintenance salaries and a large $2,000,000 price tag on the Town’s police protection.
Capital Project expenses include $500,000 in rollover for State mandated MS4 stormwater projects as the biggest cost, $175,000 in playground projects, and $90,000 for a replacement truck with a plow. This leaves a deficit of $921,548 that the Town must address by making some tough decisions to possibly include raising taxes, pulling from savings and/or postponing Capital Projects or eliminating some completely.
According to a report by the Frederick News-Post, Town Manager Sean Williams said the Town currently has about $5.8 million available in its savings that could be used for the General Fund. They also reported that Commissioner Bob Yoder, who was elected in September, said Thursday he’s been critical of the Town in the past for using savings to cover budget deficits. He said he hadn’t examined the Proposal enough by Thursday afternoon to see where cuts might be made. But he agreed with Williams that it would come down to using reserves, raising taxes, and looking at what Capital Projects need to be done and what can be deferred. "There’s only three choices," Yoder said. He said it might take a mix of all three options to address the issue, although increasing taxes would not be his first choice.
As of now, the Town’s property tax remains the same as last year at a rate of .14 cents per $100 of assessed property value.
The Water Fund, where the operation of the water plant is funded, is projected to see $5,091,675 in revenues. Here, $1,550,000 is attributed to water rates, which increased by 20% last year and will see a 3% increase for the next four years. ARPA Funds are also contributing $3,033,755 to the Water Fund revenues and the majority is slated to be used for the Discovery Water Main replacement.
Water Fund expenditures total $1,771,985 with the biggest draw coming from salaries at $250,000, parts at $217,600, chemicals at $111,618 and the annual sewer treatment at $430,849, an increase of 4.1% compared to last year. Capital Projects total $3,295,007, all from ARPA funding slated for the ongoing Discovery Water main replacement. This gives the Water Fund a reserve of $24,683.
The Town will hold a public hearing on the General Fund budget at its May 28 meeting, and a hearing on its Water Fund budget at its meeting on June 11.
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