A new headquarters for the Prince Frederick Volunteer Fire Department is on Calvert County’s capital projects list.
Prince Frederick, MD – As the March 20 hearing started, Calvert County Administrator Terry L. Shannon declared, “this is an exciting time.” After years of plugging gaping holes in its operating budget and even raising property and income tax rates for the first time in over a generation, Calvert County’s leaders now have what appears to be a structurally sound spending plan. The staff-proposed fiscal year (FY) 2019 budget, totaling over $296.57 million is near 5 percent heftier than the current fiscal year’s budget. The largest amount of new money is being pipelined to the county by Dominion Energy’s payment in lieu of taxes (PILOT), which was forged several years ago as the utility was planning to expand its Cove Point facility in order to export natural gas to foreign countries. The Dominion PILOT for FY 2019 totals $10.8 million. Calvert’s Department of Finance and Budget Director Tim Hayden noted two other significant changes, increases in real property (7.2 percent) and income tax (1.7 percent) revenues.
Under the proposed budget, county government employees will receive one salary step increase and a 1.2 percent cost of living adjustment.
Nearly 50 percent of the county’s operating budget is used as Calvert Government’s allocation to the public school system. As currently proposed, Calvert County Public Schools (CCPS) will receive a 4.7 percent increase. “We have a funding formula, we are not here to ask for more,” said Calvert Superintendent of Schools Dr. Daniel Curry. Under the Calvert County Commissioners’/Board of Education funding formula, CCPS will receive a $2 million “one-time adjustment” to reduce the school system’s other post-employment benefits (OPEB) funding. Additionally, CCPS will be held harmless for its enrollment loss, receive $1.8 million for the consumer price index factor and a 1 percent adjustment factor ($1.25 million). Hayden stated that county government’s allocation to CCPS exceeded the state-mandated maintenance of effort by $5.7 million.
Curry said during his presentation that FY 2019 salary increases for FY 2019 includes pay steps and restored steps.
Board of Education member Kelly McConkey thanked the county commissioners “for supporting Calvert County Public Schools.” McConkey noted “no red shirts in the room,” a reference to past budget hearings when the county’s public school teachers would pack the Calvert Pines auditorium to demand more county money for educators.
Both Shannon and Capital Projects Analyst Veronica Atkinson spoke about the county’s ongoing and planned building projects. The proposed FY 2019 Capital Improvement Plan (CIP) totals $57.5 million, with most of that amount from bond funding. Ongoing projects in the plan include the Linda L. Kelley Animal Shelter, the new Northern High School, the new Prince Frederick Volunteer Rescue Squad headquarters and Southern Pines II Senior Center. The animal shelter and senior center are both public/private partnership projects. Also in the pipeline is a new headquarters for the Prince Frederick Volunteer Fire Department.
A looming project still in the works is a county administration building, estimated to cost $45 million. Nearly $10 million in bond funding is to be used to start the huge project.
During public comment, Sheriff Mike Evans [R] thanked county government for the salary step increase but also lamented the loss of deputy recruits and some seasoned officers who are opting to work in jurisdictions that pay more money to law enforcement officers. Evans also requested funds to hire a civilian public information officer.
“I know what a tough budget is,” said Buddy Hance of Port Republic, who served as Maryland Agriculture secretary in the O’Malley Administration. Hance, who is running for county commissioner at-large, indicated the county’s ambitious proposed budget may not be a good thing in the long-run. “Catching up is going to overtake us. In another five years we are going to need another tax increase.”
The added debt $372.4 million in CIP projects during the next six fiscal years and lack of infrastructure improvements drew the concern of Miriam Gholl of the Keep Calvert Country Community Group. Among the group’s formal requests presented by Gholl at the hearing was for the county commissioners and staff to “share with the public the reasons why, after raising our income taxes and real estate taxes, and accepting money from Dominion, $270 million in debt services is proposed. Better yet, do not increase our debt.”
Hayden said that the next steps in the budget process will be further discussions between the county commissioners and staff, continuous updates to revenue and expenditure estimates and a public hearing in late May when the commissioners present their proposed budget. Hayden said public comment on the staff-recommended FY 2019 budget will be accepted in writing until one week prior to the commissioners’ budget hearing.
Contact Marty Madden at marty.madden@thebaynet.com