(5/5) At its May 3 meeting, the Thurmont council heard the first draft of the proposed FY-23 budget for all town funds – the general fund, water fund, wastewater fund & electric fund as well as the capital improvement budget.
Its associated preliminary plan, that included all components of the town budget was presented to the Council on May 17 by Chief Financial Officer Linda Joyce and approved. The total town budget for FY-23 is $13,354,901.
Total expenditures from the general fund, which covers day-to-day operations of the town, including staff salaries, police, roads, parks, and capital expenditures is anticipated to be $4,278,662. The town anticipates $4,768,518 in revenue, approximately half of which comes from property taxes, the other half comes from income taxes and county and state funding.
To cover costs in general fund, the town will be increasing property taxes rate from 29.92 cents per $100 of assessed value, to 32 cents, or 7%. When property assessment increases are factored in, the new tax rate will result in overall town revenue increasing 11%. In order to stay up to speed with inflation rates it was necessary for the town to increase taxes Joyce said as to not dip into reserves.
Commenting on the tax rate increase, Mayor John Kinnard said: "As everyone knows, prices of everything have gone through the roof, we had to increase our revenue to cover our increased costs."
Water fund expenditures are expected to be $838,257, with revenue of $1,062,150, for an operating surplus of $223,893.
Wastewater expenditures are expected to be $1,471,239, with revenue of $1,764,009resulting in a surplus of $292,770. And the town expected to pay $5,633,798 for electric service, while generating $5,760,224 in revenue for a surplus of $126,426.
Proposed capital improvement item in the FY-23 budget include replacement of the town dump truck, a new pickup truck, and the purchase of an electric vehicle.
Acknowledging a current high inflation period and increase of prices, the council praised Joyce for her very clear distinction on budget items.
"We have a great town, and we provide, I believe, very good services to our residents at a very reasonable cost," Kinnard said.
Kinnard noted that looking at past budgets, generally Thurmont does not spend what is budgeted. "We budget revenue and expenditures conservatively … We underestimate on our revenues and overestimate on our expenses," Joyce said.
