She said there are fewer housing permits being issued in the county which means less recordation tax revenue.
County Executive Jessica Fitzwater (Photo from Frederick County Government)
Frederick, Md (KM) The fiscal year 2025 budget for Frederick County is expected to be a little lighter then in previous years. But Frederick County is in a much better position compared to other jurisdictions in Maryland. That’s according to County Executive Jessica Fitzwater, who held an update on the budget on Monday.
She noted that Frederick County has a diverse economy. “We are seeing steady income growth but that growth has been happening at a slower pace then in recent years.” Fitzwater says. “New housing permits are down in the county, and even down overall when we combine the county with the city of Frederick. So that results in less recordation tax revenue into the county’s; general fund.”
She noted that the county is expected to receive less revenue from the state for the next fiscal year. “We have a proposed budget at the state level right now that significantly reduces highway user revenues that will go the counties over the coming years, and has cut significant transportation projects like US 15 construction,” Fitzwater says.
And there’s another problem when it comes to revenues. “You also may have heard in the news about a mistake that was made when the State Department of Assessment and Taxation failed to mail over 100,000 of the updated property tax assessments across the state before the deadline,” says Fitzwater. “In Frederick County, the result is about $1 million less in revenue for f-y 25. But the problem would be compounded dramatically in future years.”
These and other developments make it difficult to craft a budget for the next fiscal year. Fitzwater noted that the county still continues to receive budget appeals. “So this year, the county received about $84 million in total appeals. And this represents $62 million requested from FCPS {Frederick County Public Schools} above their maintenance of effort allotment, and $22 million from county departments and all of our other partner agencies,” she says.
The budget drafting process began in December when County Executive Fitzwater held her first budget hearing. It was followed by meetings in each of the five councilmanic districts. She says the top priorities from citizens who attended are education and workforce development. Public health and human services tied with housing and quality of life for second place; and health and human services tied with sustainability, infrastructure and transportation in third place.
Fitzwater says the county continues to receive comments and recommendations from citizens as the budget is being put together. She recommends they go online and use the Balancing Act tool. They can decide on how to allocate limited funds with the county’s funding needs. “This struggle is real when balancing all the competing needs within the level of county funding and bonding capacity,”: she said. “There is certainly not enough to do it all, and hard choices always have to be made.”
Residents can find The Balancing Act by going online to FrederickCountyMD.gov/BudgetSurvey. The survey will remain open through Monday, March 25th at 4:00 PM.
County Executive Fitzwater is also holding a budget hearing on Wednesday, March 20th beginning at 7:00 PM at Winchester Hall at 12 East Church Street in Frederick. . Citizens can come in person and sign up to testify. They can also watch the meeting FCG TV Channels 19 and 1085. It will also be streamed at FrederickCountyMD.gov/FCGTV. If they’re watching remotely, residents can also call in at 1-855-925-2801, and enter meeting code 10042. To speak at the meeting, press *3 and you will be put into a virtual queue where you can wait for your turn to speak.
She says she will release her proposed fiscal year 2025 operating and capital budgets, and the Capital Improvements Plan on April 15th.
By Kevin McManus