Schlehr Proposes Tax Hold, Employee Cost of Living Increase

Town Administrator Chris Schlehr presented his $14.8 million budget for fiscal year 2012 to the Bel Air commissioners on Monday, a spending plan that maintains the existing property tax rate and slightly decreases operating expenditures.

The budget, a 2.4 percent increase over the current fiscal year that ends June 30, proposes giving a 1.5 percent cost-of-living pay raise to town employees.

"While our total budget [increased], our general operating fund ... is lower than last fiscal year by $98,054," Schlehr said at the commissioners meeting. “Overall, fiscal year '12 is flat. ... There won't be any change in services.”

Schlehr kept the tax rate—unchanged since 2004—at 50 cents per $100 of assessed value. Harford County Executive  proposed to keep the county’s tax rate stable last week. 

As a result, property tax revenues are expected to decrease from $7.1 million to about $6.5 million. To help offset the lost revenue, the town expects to receive about $561,000 in additional revenue from various sources—state income taxes, public works fees from new developments, Harford County police tax rebate and vehicle replacement proceeds.

Schlehr did not propose merit pay increases for town employees, but his 1.5 percent cost-of-living increase would cost the town $100,000 more in salaries. Schlehr anticipates a $129,000 increase to employee benefits costs due to increases in workers compensation and medical insurance.

The  Department’s budget is proposed to decrease by $206,000. Schlehr said the department’s current fiscal year budget is higher due in part to a one-time, $35,000 purchase for a firearms simulator and $150,000 in pension savings that won’t be realized in fiscal year 2012. Additionally, the department expects to spend less on police vehicles next year.

The Department of Planning’s budget is proposed to decrease by $55,000 due to the completion of multiple town projects. The town building’s budget could also decrease by $25,000 due to electricity savings and reductions in maintenance and repair costs, Schlehr said.

The town’s computer budget is proposed to increase by $40,000, though Schlehr said $43,000 would be spent on one-time costs for hardware and “improving system reliability.”

Other budget highlights include:

• Sewer and parking enterprise funds and the special revenue fund are set to increase by a combined $463,067.
• Expenses for the Department of Public Works include $146,000 for a refuse truck, $67,000 for a dump truck and $300,000 for street and sidewalk work.
• The Department of Economic Development ($32,000) and the  Alliance ($15,000) are proposed to receive marketing funds.
• The has asked for $153,960, unchanged since fiscal year 2010.
• Commissioner elections in the fall are expected to cost the town $3,790.

The Board of Commissioners unanimously received the document with little comment on Monday. The commissioners are expected to adopt a tentative budget before holding public work sessions April 18 and May 16.

"We're only required to have one public hearing but we have two," Schlehr said.

The budget has to be passed by June 1 and will become effective July 1.